Leahy, Kirby headline “Plane Truths” conference in Chicago Sept. 11-12

July 24, 2018, © Leeham News: John Leahy, who retired in January after 33 years at Airbus, and Scott Kirby, president of United Airlines, headline the Leeham Co. and Airfinance Journal conference, Plane Truths: The Next 12 Months, Sept. 11-12 in Chicago.

This will be Leahy’s first conference appearance since he retired from Airbus, where he was COO-Customers.

Plane Truths: The Next 12 Months focuses only on the key issues coming up in the next year. Click here for more information.

Officials of American Airlines, Cargolux, HiFly, Rolls-Royce, Skyworks Capital, Collateral Verifications, Embraer and Bombardier are among those who will participate.

Read more

Farnborough: Day 4 orders

July 19, 2018, (c) Airfinance Journal: Announcements at today’s show followed the same pattern as earlier in the week a fair amount of undisclosed orders. The first three days of the air show saw 292 aircraft orders undisclosed.

Of today’s total, undisclosed orders represented 125 Airbus and Boeing aircraft, while AirAsia X, Hawaiian Airlines, Vietjet and lessor Novus Aviation Capital announced commitments for 108 aircraft.

Read more

Farnborough: First day order recap

By Alex Derber

July 16, 2018, (c) Airfinance Journal: Day One of Farnborough 2018 belonged firmly to Boeing in terms of firm orders, although the US manufacturer saved up many of its largest announcements from deals done earlier in the year. Airbus, meanwhile, almost achieved parity if one includes softer commitments from airlines and lessors, although there were some speculative deals, notably a memorandum of understanding (MoU) for 17 A350s from Starlux, a Taiwanese start-up not yet in business.

Other noteworthy deals included lessor Jackson Square Aviation’s first new aircraft order and United decision to buy E175s rather than the newer E2 variant.

Read more

Southern state coalition bid likely for Boeing NMA assembly site

June 27, 2018, © Leeham News: A coalition of four Southern US states that joined to win the US Air Force tanker contact site location for Mobile (AL) will likely link up again to bid for the assembly line of the prospective Boeing New Midmarket Aircraft, officials of three of the states said yesterday.

The Aerospace Alliance includes Florida, Alabama, Mississippi and Louisiana.

An official of an economic development commission for Charleston (SC) said Charleston will also likely throw its hat into the ring.

The comments were made at the Leeham Co./Airfinance Journal Southeast Aerospace & Defence Conference yesterday in Mobile. The conference continues today.

Read more

Airbus supplier ownership structure questioned

By Laura Mueller

June 26, 2018, © Airfinance Journal: Airbus-owned, tier-one supplier Premium Aerotec could end up with different owners due to the changing supply chain landscape, Dr David Pritchard, associate professor SUNY Empire State College, told delegates at the Leeham Co/Airfinance Journal Inaugural Southeast Aerospace & Defence Conference in Mobile today.

“I think it will likely be spun off to private equity investors…you need to look at changes in the airframe industry. It doesn’t make sense for Airbus to own it and to own everything,” he says.

Read more

GTF better, says one airline; engine OEMs need 12-18 months to solve issues, says lessor

May 16, 2018, © Leeham News: Pratt & Whitney has a long way to go to fix all its problems on the Geared Turbo Fan engine, but one airline customer says the situation is getting better.

Ted Christie, CFO of Spirit Airlines, said all five A320neos it’s received are now operating. These famously were pictured parked and months at the D/FW International Airport with covers on the engines.

The fuel burn is better than the advertised 15% reduction, Christie said, without specifying how much better. Industry scuttlebutt indicates the GTF is 1%-2% better than advertised.

Christie made his remarks yesterday at the 38th annual Airfinance Journal conference in Miami.

Read more

A321neo plus a stretch too far for NMA: Avitas

Published 05 Mar 2018 by Airfinance Journal

Special to Leeham News.

March 8, 2018, (c) Airfinance Journal: A leading appraisal firm questions whether Airbus should respond to Boeing’s proposed new midsize aircraft (NMA) simply by enhancing its existing product line.

John Vitale. Source: Airfinance Journal

“There is a gap, a natural gap that needs to be filled, so I am not sure whether the A330 coming down…and the A321 coming up, fills the gap,” said John Vitale, president and chief executive officer of Avitas, speaking on a panel of appraisers at Airfinance Journal’s Korean Airfinance event, adding: “Airbus claims the A321 has all this range and that they can put in as many seats as they are talking about. Well, no you can’t in an equal comfort level.”

However, Vitale acknowledges a possible further stretch by Airbus of its A321neo, the A322, or enhanced versions, such as the ‘A321neo-plus’, or even an ‘A321neo-plus-plus’“pushes out the timing of the NMA aircraft.”

Read more

Norwegian flies in thin air

By Bjorn Fehrm

February 14, 2018, ©. Leeham Co: Norwegian Air Shuttle (Norwegian) is in an aggressive expansion phase. The airline is setting up as many low-cost routes as possible across the Atlantic, to gain critical market share before the competition gets organized.

Such expansion costs money, a rare commodity at Norwegian. The company presents its 2017 results Thursday. We analyze what to expect.

Read more

Lessors and investors disagree on transparency

Special to Leeham News

By Jack Dutton

Jan. 25, 2018, © Airfinance Journal, Dublin: The opacity of the industry in regard to asset prices is one of the main challenges for aircraft lenders and investors, according to a panel of investors speaking at the 20th Annual Global Airfinance Conference in Dublin.

“The lack of transparency on pricing is your biggest challenge as an aircraft lender or holder. The leasing companies were in the best position to hold good pricing information,” said David Andrews, managing partner of transport, Hudson Structured Capital Management.

Read more

20-year old ISTAT definitions “archaic”

Special to Leeham News

By Michael Allen

  • ISTAT definition “quite archaic.”
  • Appraisers says aircraft disparity in ABS transaction can be due to lack of information provided by the arrangers.

Jan. 25, 2018, © Airfinance Journal, Dublin: “We get asked to value a portfolio of 35-aircraft,” says Rikard de Jounge vice president – asset valuations at Avitas.

“No one tells you that the valuation is for an ABS transaction. They just ask for market and base values,” he adds.

Stuart Hatcher, head of intelligence at IBA Group, says it is still a “secretive market”.

“Providing that we are dealing with sellers, the information is generally good. The issue we tend to find is with the arrangers. And the communication can be quite sporadic,” he says.

The other issue is how much you are including into a valuation for a lease-attached aircraft.

Read more