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Part 2. Part 1 may be found here.
Oct. 10, 2016, © Leeham Co.: Regional aircraft are much riskier assets for lessors than mainline aircraft.
Until recently, Bombardier and Embraer were the only two regional jet Original Equipment Manufacturers (OEMs).
Today, the Sukhoi SSJ100 and the Mitsubishi MRJ90 join BBD and EMB in this arena.
Posted on October 10, 2016 by Scott Hamilton
Airlines, American Airlines, Bombardier, CSeries, Delta Air Lines, Embraer, Mitsubishi, Pratt & Whitney, Premium, Sukhoi, United Airlines, US Airways
American Airlines, Bombardier, C-110, C-130, Continental Airlines, CRJ, CSeries, Delta Air Lines, E-Jet, Embraer, ERJ, GTF, Mitsubishi, MRJ90, Pratt & Whitney, SSJ100, Sukhoi, United Airlines, US Airways
By Bjorn Fehrm
October 06, 2016, ©. Leeham Co: Air Berlin, Germany’s second airline and Europe’s ninth largest carrier by passengers carried, announced that it will wet-lease 40 aircraft to Lufthansa together with many European routes, concentrate all tourist operations into a new business unit before spinning it off and that it will reduce staff further.
This comes after combined losses of €1.7bn since 2010. Several restructuring programs have not stemmed the losses. Last year they rose to €0.45bn and they have continued on in 2016. Read more
Posted on October 6, 2016 by Bjorn Fehrm
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Introduction
Part 1: The Big Two OEMs
Oct. 3, 2016, © Leeham Co.: There are airline assets and there are leasing assets.
That’s a good airplane but it’s not a good leasing asset.
These are the succinct remarks of just two lessors who decide what aircraft to add to their portfolios.
What do they mean by this and why do they say this?
We’ll take a look today at the thoughts behind these positions.
Posted on October 3, 2016 by Scott Hamilton
Airbus, Airlines, Boeing, Bombardier, CFM, Embraer, GE Aviation, International Aero Engines, Lessors, Pratt & Whitney, Premium, Rolls-Royce
737 MAX 200, 737-7, 737-8, 737-9, 747, 767, 787, 7E7, A319ceo, A319neo, A320ceo, A320NEO, A321LR, A321NEO, A350, A350-1000, A350-2000, A350-800, Airbus, Boeing, Bombardier, CFM, CFM56, Embraer, GE Aviation, GTF, International Aero Engines, Pratt & Whitney, Rolls-Royce, V2500
By Bjorn Fehrm
September 29, 2016, ©. Leeham Co: We visited ISTAT (International Society of Transport Aircraft Trading) 2016 conference in Barcelona this week. The most interesting part of the conference was the economists panel with discussions between the economist: Brian Pierce, chief economist of IATA; Peter Morris, chief economist at Ascend; and Adam Pilarski, SVP and Head of Consulting, AVITAS.
The economists agreed that the air transport market is at a cross-roads, but not which route it will take.
Let’s start with the market facts presented by IATA’s Pierce: Read more
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Introduction
Sept. 26, 2016, © Leeham Co.: It’s hazardous to use the word “never,” but the US and European Union will never impose trade sanctions or tariffs on Airbus or Boeing airplanes.
No sane president would do so. (Cue Donald Trump.) It would start a devastating trade war and the collateral damage on innocents in the Airbus-Boeing illegal subsidies disputes would be severely harmed.
Summary
Posted on September 26, 2016 by Scott Hamilton
By Bjorn Fehrm
14 September 2016, ©. Leeham Co: During 2014, we wrote several articles on what could be a good replacement for the Boeing 757-200Ws operated on trans-Atlantic missions. One of the aircraft we looked at was Boeing’s 737 MAX line.
We found that the most promising variant was the 737 MAX 8. It has a standard range without extra tanks of 3,600nm. Its practical maximum network range would be critically dependent on the cabin configuration. The best configuration would be with a light cabin such as that an LCC would use for transatlantic service—that is, not including heavy, lie-flat seats, but rather seats that might be configured with extra legroom and perhaps greater reclining ability. At the time, we looked at Norwegian Air Shuttle (NAS) as an example.
Flight International now reports in their 13-19 September print magazine that Norwegian might be the first taker of the 737 MAX and that the missions would be trans-Atlantic.
The MAX 8 program is running ahead of schedule. Planned Entry Into Service (EIS) was summer 2017 with Southwest Airlines. Southwest still plans to take delivery of their first 737 MAX 8 at that time with operational service starting in September.
But Boeing is ready to deliver 737 MAX 8s as early as March 2017. The customer for these aircraft would be Norwegian and the planned use should be flights between Europe and US East coast. This means the first mission for the “short haul” 737 MAX should be to cross the Atlantic. Read more
Posted on September 14, 2016 by Bjorn Fehrm
Sept. 8, 2016: Glory Lost and Found: How Delta Climbed from Despair to Dominance in the Post-9/11 Era is a ponderous title for a ponderous book.
But this is not a criticism.
Glory Lost is one of the best books I’ve ever read about the turmoil in the airline industry. Authors Seth Kaplan and Jay Shabat, two journalists, put together a book of nearly 450 pages that goes beyond just the focus of how Delta Air Lines spiraled into bankruptcy following 9/11, emerged and suffered through more travails after the 2008 financial market meltdown.
Posted on September 8, 2016 by Scott Hamilton
Sept. 5, 2016, © Leeham Co.: August was unusually slow, so today is sort of an Odds and Ends clean-up of the summer.
There was the Southwest Airlines engine incident and the reports that ANA’s Boeing 787s have engine issues, but I wrote about these last week.
Today, the Odds and Ends include more on the Mitsubishi MRJ; Airbus deliveries; sales campaigns and other stuff.
Posted on September 5, 2016 by Scott Hamilton
Sept. 1, 2016, © Leeham Co.: The lucrative labor contract agreement for Southwest Airlines pilots agreed this week is good news for Boeing.
Why?
Because under the previous contract, Southwest pilots—who had been in negotiations with management for about four years—claimed they didn’t have to fly the new
737 MAX. The terms limited the number of types of 737s that could be flown, they claimed.
Management took a different view, but the issue was serious enough that WN accelerated retiring 737 Classics in part because of this issue. Retire the Classics, and a fleet type is eliminated, paving the way to accept and operate the MAX.
Posted on September 1, 2016 by Scott Hamilton
LNC has been beset by technical issues since Aug. 17 that interferes with e-mail notification as well as links to Twitter, Facebook and Linkedin. We’re working on it with Wordpress.
Aug. 29, 2016, © Leeham Co.: Faulty engines dominated commercial aviation news last week.
First was ANA’s Boeing 787s were hit by issues with its Rolls-Royce engines. Corrosion was found on key engine parts. ANA cancelled flights to inspect and repair the engines.
Unfortunately, some media characterized the matter as the “latest” to hit the “troubled” 787. The London Telegraph is one example.
This characterization, of course, refers to the history of the 787 with its design and production challenges and later by the grounding from the lithium-ion battery fires.
Posted on August 29, 2016 by Scott Hamilton