Oct. 15, 2018, © Leeham News: “With your help, we will develop actionable plans to develop the supply chain.”
This was the leading message from the 5th Annual South Carolina Aerospace Conference and Expo, held Tuesday and Wednesday last week in Columbia (SC).
Conference officials also said they are “exploring a national aerospace coalition.”
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April 14-16, 2019
Francis Marion Hotel
The South Carolina Council on Competitive/SC Aerospace already have a Letter of Intent with Washington State’s Aerospace Futures Alliance “for the purpose of advancing the aerospace industry across the US. The LOI will serve as the platform for exploring the creation of a national aerospace Coalition (Coalition) with the objective of strengthening and growing commercial aviation, space, and unmanned aerial systems in the US through a variety of activities.”
Sept. 11, 2018, © Leeham News: The Boeing Co., Boeing Capital Corp, Marsh & McLennan and its subsidiary, Marsh, a major insurance firm, have been sued for trade secret theft in lawsuits filed in Chicago and New York.
The dispute centers around the roles of Boeing, BCC and the insurers in creating Aviation Finance Insurance Consortium (AFIC). AFIC was created following years of the US Congress’ refusal to reauthorize the US ExIm Bank.
Xavian Holdings and Xavian Insurance Co. allege in the lawsuits that The Boeing Co., through its Boeing Capital Corp unit, and Marsh signed trade secret and confidentiality agreements that precluded the companies from acting on the concept for an ExIm replacement financing guarantee vehicle.
“Boeing and BCC waited until their need for those trade secrets became critical – and then
misappropriated them,” the Boeing lawsuit charges.
Xavian was founded by several Wall Street professionals in aircraft finance and some bankers from ExIm, led by attorney Thatcher A. Stone. Stone now lectures on aviation law at the University of Virginia School of Law. Xavian was backed by venture financiers and had received a significant financing commitment from Lightyear Capital, led by Don Marron, former chairman of Paine Webber and UBS.
AFIC was launched in June 2017. In its first seven months, it provided financial guarantees for 16 Boeing aircraft to four airlines and a lessor. The aircraft had a value of $1.5bn in financing guarantees.
One person told LNC that Boeing’s profits from the sale could be around $800m. The lawsuits don’t specify a damage claim, which is normal in federal courts.
Despite the trade secret and confidentiality agreements, Xavian charges in the lawsuit that BCC’s Kostya Zolotusky, Tim Myers, now president of BCC but a VP at the time, and Robert Morin, then still employed by ExIm but a part of Xavier’s effort, were privy to then Xavian plans. Also privy was BCC officer Scott Scherer, now retired, the lawsuit says.
Morin now works for Marsh, the insurance manager for AFIC.
Appraisers differ on market size but Boeing’s new aircraft type could launch as early as 2026.
Sept. 11, 2018, (c) Airfinance Journal: No announcement was made at the Farnborough Air Show about the proposed New Midsize Airplane (NMA). With Airbus’ A321neo model selling well, the ball is in Boeing’s court.
The A321neo is Airbus’s weapon to challenge that market and the European manufacturer is trying to move fast into the middle of the market segment with more A321neo improvements in an effort to challenge further Boeing on its business case. The aircraft’s current maximum range is 4,000 nautical miles (nm), but Airbus is understood to be working on an improved version that would be capable of 4,500nm or more. This would enable airlines to operate the aircraft on transatlantic services to destinations further south on the US east coast and further east.
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.
Officials of American Airlines, Cargolux, HiFly, Rolls-Royce, Skyworks Capital, Collateral Verifications, Embraer and Bombardier are among those who will participate.
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.
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.
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.
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.
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.
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.
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.
“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.”