Leeham News and Analysis
There's more to real news than a news release.
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.
Airbus, Boeing list price hikes will have little affect
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Introduction
Jan. 22, 2018, © Leeham Co.: Airbus and Boeing hiked their list prices on their airliners last week by about 2% and 4% respectively.
There is little impact for either company in the near term. Single-aisle lines for both companies are sold out until the early 2020 decade, so any price hikes today will be reflected for sales will deliveries after the current backlog clears.
The wide-body lines could have better near-in returns; the backlogs aren’t as far out as single-aisle and near-term opportunities exist.
Summary
- Initial deposits might see an uptick in cash flow.
- Will price hikes translate into higher revenue or larger discounts?
- Production rate hikes would create revenue opportunities.
It’s time to unwind, get healthy, eat right and avoid jet lag, says Airbus’ Leahy
John Leahy has been with Airbus 33 years, holding his current position as COO-Customers for more than 20 of these. He retires this month. Jan. 15’s 2017 year-end Orders and Deliveries press conference will be his last. LNC interviewed Leahy about his tenure at Airbus. Parts 1, 2 and 3 appear here, here and here. Today is Part 4. LNC’s Scott Hamilton has known Leahy for nearly 30 of these 33 years.
Jan. 12, 2018, © Leeham Co.: “I want to unwind, get healthy, eat right and not be in a constant state of jet lag. At 44, 45, I didn’t mind it. Right now, the thought of
The end of an era. Airbus President Fabrice Bregier (L) and COO Customers John Leahy. Bregier leaves Airbus next month after more than two decades. Leahy retires this month after more than three decades. Photo via Google images.
doing trips to Australia, I’d be jet lagged for three days.”
These are John Leahy’s plans for the first year after he retires in a matter of days after 33 years at Airbus.
When he was younger—that age 45 he referenced above—he thought nothing of working in Toulouse, Airbus headquarters, on Monday, getting on a plane to fly to Southeast Asia and Australia and be back in Toulouse to put in a full day on Friday—working the clock to make the long, long round trip.
“It was sort of fun,” he recalls. “I did a lot.” But not now.
NMA market sector is small, Airbus’ Leahy says
This is a continuing series of articles derived from LNC’s “retirement” interview with John Leahy, COO-Customers of Airbus. Leahy retires this month.
Jan. 3, 2018, © Leeham Co.: This is the year many expect Boeing to decide whether to launch the New Midmarket Aircraft, also known as NMA or unofficially, the
John Leahy, COO-Customers of Airbus. Photo via Google images.
797, to serve the Middle of the Market.
The MOM sector is broadly defined as above the Boeing 737/Airbus A321 and below the Boeing 787/Airbus A330-200/800.
Others, including LNC define the market more broadly.
History undermines Boeing claim of C Series impact: analysis
Analysis
Dec. 22, 2017, © Leeham Co.: Boeing blames a subsidized, price-dumped Bombardier C Series for the poor sales of the smallest member of the 737 family, the -700 and the 7 MAX, but history doesn’t support the claim.
The US Department of Commerce clearly ignored sales evidence that the 737-700 has been “done” for many years and the 737-7 MAX was an unattractive design
Boeing 737-7 MAX. Rendering via Google images.
that hasn’t been fixed with a redesign; airlines simply don’t want the airplane. Commerce levied tariffs amounting to 292% on C Series imported into the United States in the future.
The US International Trade Commission is currently awaiting post-hearing briefs from Dec. 18 testimony from Boeing, Bombardier, Delta Air Lines and other parties to determine whether Boeing suffered “harm” by the C Series deal with Delta and a near-miss with United Airlines.
If the ITC concludes Boeing suffered harm, the DOC tariffs stand. If not, the DOC action is moot. The loser at ITC is expected to appeal.
The Supersonic dilemma
By Bjorn Fehrm
December 20, 2017, ©. Leeham Co: The Super Sonic Transport (SST) has a new spring. Aerion announced its new partner Lockheed Martin Friday and Boom got a new investor in Japan Airlines (JAL) the week before.
The design of a supersonic transport aircraft is exciting and difficult. Yet it isn’t the key challenge. The engine is.
Singapore Airline’s new A380s feature improved cabins
By Bjorn Fehrm
December 13, 2017, ©. Leeham Co, Toulouse: Singapore Airlines took delivery of its first new generation A380 today in Toulouse. The aircraft features new cabins in all four classes, First-, Business-, Premium economy- and Economy class.
The aircraft is the first of five newly ordered A380. In addition, 14 of the present A380s will be upgraded to the new cabin standard.
Delta Airbus deal means Bombardier trade complaint continues
Dec. 13, 2017, © Leeham Co.: Delta Air Lines chose to place its long-awaited order for the re-engined single-aisle airplanes with Airbus for the A321neo, powered by Pratt & Whitney GTF engines, according to an exclusive report from CNN’s Jon Ostrower.
The Delta Board of Directors was expected to decide today, announcing its decision either today or tomorrow at the investors’ day event.
If confirmed, the deal is a major loss for Boeing, which hoped to sell the 737-10 MAX to Delta. A win would have been a huge boost for the MAX 10.
Top 10 aviation stories of the year on Leeham News
Dec. 31, 2017, © Leeham Co.: Airplane development and the whimsicle made the Top 10 stories on LNC in 2017.
The Top 10 are a statistical listing of the most-viewed posts, not some judgment call on the part of LNC.
Here is the rundown.
Read more
26 Comments
Posted on December 31, 2017 by Scott Hamilton
Airbus, Airlines, American Airlines, Boeing, Bombardier, CSeries, Emirates Airlines, Leeham News and Comment, McDonnell Douglas, MOM, New Midmarket Aircraft, NMA, Qatar Airways
737-7, 737-700, 777-9, A321, A321NEO, A322, A380, Airbus, Bernstein Research, Boeing, Bombardier, C Series, Delta Air Lines, Emirates Airline, McDonnell Douglas, MD-95, New Midmarket Aircraft, NMA, Norwegian Air Shuttle, Qatar Airways, Singapore Airlines