Leeham News and Analysis
There's more to real news than a news release.
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.
Joon enables Air France-KLM to expand its low cost offering
By Bjorn Fehrm
December 13, 2017, ©. Leeham Co: Air France-KLM, or really Air France, has after a long dialogue with its trade unions set up Joon, a new LCC operation in the group. The new airline flew its first flight, Paris Charles de Gaulle (CDG) – Barcelona, on December 1st.
Air France-KLM has already an LCC daughter, Transavia. So why Joon?
Used A330-200s could be interim solution to NMA
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Introduction
Dec. 11, 2017, © Leeham Co.: Boeing is considering restarting the 767-300ER passenger line as an interim aircraft to the New Midmarket Airplane.
Airbus is pushing the A330-800 or, alternative, new A330-200s are its solution to the upper end of the Middle of the Market sector.
There is another alternative, however: used A330-200s. There is an emerging supply of these as one airline plans a down-sizing and initial 10- to 12-year leases expire in the near future.
Etihad is planning to dispose of its Airbus A330-200s. These would make a good, potential pick-up by an airline seeking an interim solution while awaiting the New Midrange Aircraft. Photo via Google images.
Summary
- NMA EIS target remains 2025, Boeing says, as opposed to 2027, according to market sources.
- Regardless, timeline, production ramp-up indicates near-term need for newer airplanes.
- Business case for NMA still hasn’t closed; program launch still uncertain, but activities continue.
- Boeing 767 production ramp up studies underway, effective as soon as early 2020.
Pontifications: Countdown to Delta’s single-aisle decision
By Scott Hamilton
Dec. 11, 2017, © Leeham Co.: Eyes will watch Atlanta (GA) this week, when the Delta Air Lines Board of Directors decides to award a big order for the re-engined Airbus and Boeing single aisle airplanes.
The Board meeting is believed to be Thursday. At stake: 100 orders and 100 options for either the Airbus A320neo or Boeing 737 MAX families.
I wrote about this last week. Here’s an update.
Read more
Airbus’ strategy for the A330-800
By Scott Hamilton
Dec. 6, 2017, © Leeham Co.: The A330-800 entered the final assembly line last week at the Airbus production plant in Toulouse, France, amid doubts in the industry that the airplane will be produced beyond the prototype.
The first A330-800 is on the Final Assembly Line at Airbus. Source: Airbus.
There is only one order for the sub-type, six from Hawaiian Airlines—and Hawaiian is expected to cancel the order. The airline is running a competition between the Airbus A350-900 and the Boeing 787-8/9, according to market intelligence.
Pontifications: Delta’s decision on neo vs MAX near
By Scott Hamilton
Dec. 4, 2017, © Leeham Co.: The Delta Air Lines management decision for an order for 100 Airbus A321neos or Boeing 737 MAXes, plus an equal number of options, is expected this week. A decision by the Board of Directors is expected next week.
Competition between the two companies was heated. Commercial terms were aggressive. Airbus and Boeing each want this deal badly. An Airbus win speaks for itself. For Boeing, a MAX order would give a boost to the MAX 10. A blocking move on Airbus is desired. For Boeing, a win would be especially meaningful.
Relations between Boeing and Delta are notoriously strained. These were exacerbated by Boeing’s complaint with the US government over the Bombardier C Series order, in which Boeing alleged price dumping and illegal subsidies. To no surprise, the Trump-led Department of Commerce found in favor of Boeing on both.
Would a 767 stopgap make sense while waiting for NMA?
By Bjorn Fehrm
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Now open to all readers.
Introduction
November 30, 2017, © Leeham Co.: We have covered Boeing’s deliberations whether to restart 767-300ER passenger version production here and here.
To understand how good a stopgap the 767-300ER would be for an airline needing to replace ageing 767s, and the Boeing 797 not being there in time, we check its economics versus the alternatives.
Should an airline buy additional 767-300ERs (if offered) or the overqualified and therefore more expensive 787-8? Or is defecting to the Airbus A330-200/-800 a better option?
Summary:
- The 767-300ER takes about 30 fewer passengers than the 787-8 or A330-200/-800.
- It’s lighter than the longer range 787 and A330s; therefore landing fees will be lower.
- Its lower weight and smaller size also lowers crew costs.
- The lower costs for fees and crew can’t fully compensate for higher fuel and maintenance costs per passenger.
- It will be up to aggressive pricing to close the gap to the more capable and lower cost 787-8 or A330-200/-800, should Boeing restart the passenger 767 line.
Leahy reflects on 33 years at Airbus
John Leahy will retire in January and stay for a short transition to help his successor, Eric Schulz, who was named EVP, Chief of Sales, Marketing and Contracts. Leahy is Chief Operating Officer-Customers. During his three-decade long tenure at Airbus, the company moved from a single-digit market share to surpassing Boeing for more than a decade in sales. Leahy spoke with LNC about his retirement.
John Leahy, right, with William Franke, CEO of Indigo Partners at a history-making deal for 430 A320neos, announced at the Dubai Air Show. Photo via Google images.
Nov. 28, 2017, © Leeham Co.: John Leahy was a salesman at Piper Aircraft, a small general aviation aircraft producer when he received a call from a headhunter to join Airbus North America as its top salesman.
Leahy was head of marketing at Piper. With a pilot’s license, he would take various Piper aircraft to conventions or air shows and on sales calls for demonstration.
“It was great fun,” he said. “It was really an enjoyable job.” Leahy said Piper was consolidating everything in Vero Beach (FL) and he wasn’t sure he wanted to move there. He wanted a more direct sales role and accepted a position with Piper in Geneva, Switzerland, as Director of the Eastern Hemisphere. “I felt that was pretty cool.”
Before moving, the headhunter called.