Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- Bjorn’s Corner: Air Transport’s route to 2050. Part 25. June 6, 2025
- New RISE powerplant benefits from decades of GE research and development June 5, 2025
- Engine makers emphasizing durability, reliability June 4, 2025
- Boeing CEO: Lessons learned are key to certification of 737-7/10 and 777X June 2, 2025
- Digital twin is a key to JetZero’s hopes for Blended Wing Body entry June 2, 2025
Pontifications: More job cuts coming at Airbus, Boeing
By Scott Hamilton
Dec. 12, 2016, © Leeham Co.: Airbus and Boeing continue to cut costs with internal reorganizations.
These are needed efforts. And they trickle down to the supply chain.
The new CEO at Boeing Commercial Airplanes, Kevin McAllister, is expected to ratchet up the cost-cutting at BCA, in part because he comes from the cost-cutting environment of GE Aviation.
He’s got a lot of work to do.
It takes Airbus Commercial about 85 employees to produce one airplane. It takes Boeing about 107.
Iran, Boeing reach agreement on big aircraft order; Trump casts cloud
No 747s are included in the final deal between Boeing and Iran. The original announcement included four 747-8s to replace aging 747s. Photo via Google images.
Dec. 11, 2016: Iran and Boeing reached an agreement on the 80-airplane order that includes 50 737 MAX 8s, 15 777-300ERs and 15 777-9s.
The final contract still has unspecified contingencies before it can be booked as firm orders, Boeing said. One of those contingencies is clearly President-Elect Donald Trump, who criticized the larger Iran-US-allies deal of which the Boeing order is a part.
Airbus has 116 orders pending that could also be upended if Trump, upon taking office, vitiates the deal.
Boeing’s mix of aircraft changed slightly from the original news in June. The original mix included 40 737 MAXes and six 737NGs. Also included then were four 747-8s.
Comparing A350s, 787s and A380s
Editor’s note: We don’t typically do “trip reports;” this isn’t the scope of LNC. But occasionally one crosses our desk that we find of interest. One of our readers, William Bain, provided the following to us and we thought it interesting to share.
By William Bain
Singapore Airlines Airbus A350 business class. Photo by William Bain.
I flew Singapore Airlines’ Airbus A350 service from Singapore to Amsterdam. The outbound flight was operated by 9V SMD and the inbound flight by 9V SME. I was seated in the premium economy cabin.
By way of starting, I think people spend too much time say this or that model is better, as such, than that model. There’s been a fair bit of that in relation to the A350 and Boeing 787. But in my view much, if not most, of the comfort factor is down to the configuration used by specific airlines. For example, I was underwhelmed by the Qatar Airways 787 but very much liked the ANA 787.
Resurgence for ERJ-145
Note: Nov. 24 and 25 are Thanksgiving Holidays in the US. Our next post will be Monday.
Subscription Required
Introduction
Nov. 23, 2016, © Leeham Co.: The 50-seat regional jet market is dead.
That’s the conventional wisdom.
Well, not quite.
Embraer ERJ-145 is finding new life with regional airlines.
Piedmont Airlines, a unit of American Airlines, is adding the 50-seat Embraer ERJ-145 to its fleet. Eleven joined so far and next year the company plans to add 24 more.
CommutAir, an operator for United Airlines, is adding the same aircraft type to its fleet. Forty of them.
Why the mini-resurgence?
Low fuel prices and cheap airplanes.
Summary
- 50-seat regional jets were considered economically obsolete with high fuel prices.
- Sustain low prices provided a boost to the Embraer ERJ-145.
- Bombardier’s CRJ-200 hasn’t seen a similar resurgence.
Emirates feels low-cost, long-haul competition
Note: Nov. 24 and 25 are Thanksgiving Holidays in the US. Our next post will be Monday.
By Bjorn Fehrm
23 November 2016, ©. Leeham Co: Emirates Airline president Tim Clark says the carrier “has to change its approach to long-haul pricing to combat increasing competition” after presenting a half year 2016 profit which plunged 64% on 9 November.
The reason is that traditional mainline carriers are entering the low-cost, long-haul market in addition to the established LCC entrants: Norwegian Air Shuttle, AirAsiaX and Wow Air.
Figure 1. Emirates long-haul A380. Source: Emirates.
Emirates will add new low-cost fares to keep its growing fleet of Airbus A380 and Boeing 777 filled. Clark states this is necessary and that the airline will not back down on its plans for additional aircraft. It will be a period “of fierce competition as more and more international network carriers are entering low-cost, long-haul,” declares the COO.
What has changed? Isn’t Emirates the Kings of competitive long-haul travel? Read more
Pontifications: Airbus, Boeing still can sell planes to Iran Air
By Scott Hamilton
Nov. 21, 2016, © Leeham Co.: The vote last week by the US House of Representatives to block Airbus and Boeing from selling airplanes to Iran Air doesn’t do this, even if the US Senate goes along and if President Obama changed his mind to veto the legislation and signed the bill instead.
The House bill only prevents US-sourced financing.
Airbus, Boeing deferrals may indicate slowing global economy
Subscription Required
Introduction
Boeing 737 flightline at Boeing Field: 737s awaiting delivery. Seattle Times photo via Google images.
Nov. 17, 2016, © Leeham Co.: The deferral by United Airlines of 65 Boeing 737-700s announced Tuesday caused some observers to conclude this has a negative impact on the manufacturer, but this may well overlook a larger issue.
UAL is the latest “quality” airline to announce deferrals to reschedule capital expenditures or because of not needing the aircraft now.
Softening yields, particularly among US airlines, indicate over-capacity despite load factors of 85% or more, say industry observers.
While the backlogs of Boeing and Airbus remain solid today, do the actions of several major airlines indicate the leading edge of a global economy that’s beginning to soften?
Summary
CSeries out of London City Airport
Subscription required.
Introduction
By Bjorn Fehrm
November 07, 2016, ©. Leeham Co: When we visited Bombardier (BBD) in Montreal recently, we learned new information about how the CSeries would operate from London City Airport. This unique airport served 4.3m passengers last year and have expansion plans for more passengers up to 2030.
Bombardier’s first CSeries operator, SWISS Airlines, configured all its CS100 aircraft to operate from London City. This requires special engine selections and certification of aircraft and crews. The certification of the aircraft, CS100 is ongoing and will be finished at the turn of the year.
Figure 1. London City Airport, housed in the docklands of London’s east end. Source: Wikipedia.
We take a look at what is required for London City and how far the CS100, appropriately configured, can serve destinations from this special airport. We will use a combination of Bombardier data and our own performance model to reach the conclusions.
Summary
- London City Airport put special requirements on the aircraft serving it.
- The CSeries will be one of the most potent types allowed at London City.
- We use BBD data and our performance model to understand at what range destinations can be served.
UPS order tops off 747-8 line through 2020
UPS Boeing 747-8F. Source: Boeing.
Subscription Required
Introduction
Oct. 31, 2016, © Leeham Co.: Last week’s order for 14 Boeing 747-8Fs and 14 options by UPS assures continuation of the program through 2020.
If options are exercised, and if previously announced deals with other customers finally are consummated, the program should continue at least well into the 2020 decade.
Summary
- UPS (but not Boeing) revealed the delivery timeline for the order.
- The mysterious Volga-Dnepr/AirBridgeCargo that was announced at the Paris and Farnborough air shows for up to 20 747-8Fs still hasn’t been firmed up. Only four are listed on the Boeing website this year.
- Iran Air will order four 747-8s under the reported terms of the agreement with Boeing. The US government blessed the deal recently.
- The first of three 747-8s for the presidential fleet is now scheduled for delivery in October 2017, it’s believed.
Norwegian, others have vision; US airlines don’t
Subscription Required
Introduction
Dec. 5, 2016, © Leeham Co. Last weeks’ approval by the US Department of Transportation of a license for Norwegian Air Shuttle to operate long-haul, low-cost service to and from the US drew immediate fire from labor unions over anticipated US job losses.
Iceland’s Loftleider Airlines, one of the first trans-Atlantic low-cost carriers. Photo via Google images.
But their view is too narrow.
It means more jobs for Boeing and its supply chain, which are also heavily unionized. It means benefits to US exports.
But overlooked is the next evolution in long haul travel that starts next year.
Summary
Read more
Leave a Comment
Posted on December 5, 2016 by Scott Hamilton
Airbus, Airlines, American Airlines, Boeing, Delta Air Lines, Emirates Airlines, Leeham News and Comment, Premium, United Airlines
737-8, 737-800, 737-9, 737-900ER, 767, 787, A321LR, A321NEO, A330, Airbus, American Airlines, Boeing, Delta Air Lines, Icelandair, Laker Airways, Loftleider, SkyTrain, United Airlines