Finnair exanding Far East faster than planned

By Bjorn Fehrm

May 26, 2016, ©. Leeham Co: Finnair could tell the participants on its Capital Markets Day yesterday that its Asia expansion plans are going better than planned. Being the Finnish national flag carrier, Finnair has had its slew of legacy airline problems, fighting the up-and-coming LCCs on its European network.

Figure 1. Finnair’s Airbus A350-900 taking off from Toulouse. Source: Airbus

After a restructuring period 2008 to 2012 to adjust costs, things have turned for the better. The company announced a revised strategic plan 2014, which would build on the strategic position of its hub, the Helsinki Vaanta airport, for traffic to the Far East.

Finnair CEO, Pekka Vauramo, could yesterday announce that this strategy is working better than planned.

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E190-E2’s first flight

May 24, 2016: Embraer’s E190-E2 had its first flight yesterday, several months ahead of the internal schedule (original plan was September) making it the only new airplane program in recent history to be significantly ahead. Boeing’s 737 MAX was on time or a day or two early for its first flight.

The E2 is Embraer’s entry into the next phase of the E-Jet development, It’s powered by the Pratt & Whitney GTF engine. The airplane has new wings, new empennage, enclosed main gear, a digital Fly-By-Wire (FBW) and other improvement over what is now called the E1.

The flight was remarkably productive as the crew could fly the test aircraft’s envelope to M 0.82 and 41,000 ft, which is the aircraft’s max speed/altitude. The crew also flew the FBW in Normal mode (includes augmentations and protections) after having started in Direct mode, a more normal mode for a first flight.

What was achieved was far more than what is usual in a first flight. It shows a high confidence in the aerodynamic and structural design of the aircraft and the maturity of the FBW. The concern when testing higher speeds/altitudes is the flutter risk for the new wing and empennage, a very dangerous aerodynamic/structural oscillation that can destroy the parts. Embraer must have advanced its flight test technology as well to clear the flutter envelope in real time during the flight.

Paulo Cesar Silva, the CEO of Embraer Commercial, told us that the E2 is “100% on time and 100% on budget” during our interview for our column at Forbes on-line in which he characterized Bombardier as a “government-owned” company.

The E190-E2 is scheduled to enter service in the first half of 2018. The larger E195-E2 follows by a year and the smaller E175-E2 a year after that.

Egyptair 804

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Pontifications: ICAO continues to drag feet on real-time data transmission

Hamilton KING5_2

By Scott Hamilton

May 23, 2016, © Leeham Co.: Malaysia Airlines MH370. Air Asia 8501. Egyptair 804.

Three passenger flights lost over the oceans. One, MH370, remains undiscovered to this day. Air Asia took a couple of weeks to locate. Egyptair debris took about 36 hours. The black boxes are still  missing from MH370. Once the Air Asia wreckage was discovered, the boxes were recovered fairly quickly. According to media reports, the black boxes of 804 have been “generally” located, but Egypt has dispatched a submarine to more precisely locate them.

The absence of real-time data transmission from the Flight Data Recorders contributed to the mysteries of what happened to these aircraft and spurred wild theories and conspiracies. ACARS, which does transmit data from airborne aircraft, does so at intervals–not real-time. Real-time data streaming from on board transmissions could provide immediate answers to what happened to an airliner.

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Bjorn’s Corner: Transponders, the kingpin of safe air navigation

By Bjorn Fehrm

By Bjorn Fehrm

May 19, 2016, ©. Leeham Co: In my recent Corners, I have been describing how a modern airliner navigates using a Flight Management System, (FMS or Computer, FMC) to navigate along the flight plan and how it finally uses an instrument landing system to safely land the aircraft even in bad weather.

When looking into instrument landing systems, we have described the legacy systems which require large ground installations (such as ILS) and how these can be replaced in the future with smarter concepts using GPS based procedures.

I will now continue on this path and describe some of the additional cornerstone technologies needed to implement a modernized Air Traffic Control (ATC) system, which can replace today’s systems that have their roots in World War 2 (WW2) technology.

We will start today with how aircraft can be seen from the ground or other aircraft without visual sight or Radar contact. Read more

Areas of inquiry in Egyptair 804 crash

May 19, 2016: (c) Leeham Co.: Investigators will look into many areas of interest, all a

An Airbus A320 like this one operated by Egyptair disappeared last night in what is already suspected terrorism. Photo via Google images.

matter of routine, into the disappearance and crash of Egyptair 804.

According to media reports, debris and bodies have been found in the Mediterranean Sea. The Airbus A320 disappeared on a flight from Paris to Cairo. There have been several media reports of in-flight fire observed in the sky and maneuvers of the aircraft. Russian officials and others say terrorism is likely.

LNC urges caution in drawing conclusions, however.

The following are areas of investigation:

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ANA CEO opens ISTAT Asia 2016

By Bjorn Fehrm in Tokyo

May 18, 2016, ©. Leeham Co: The CEO of All Nippon Airways (ANA) Osamu Shinobe opened the 2016 International Society of Transport Aircraft Trading (ISTAT) conference in Tokyo today, in front of some 700 delegates.  Shinobe presented an overview of the airline’s recent success and its future plans. This includes the plans for use of the three Airbus A380 that the airline bought in January this year.

ANA is Japan’s most successful carrier in recent years, leading the incumbent Japan Airlines in revenue and profits since 2010. The airline had its historical base in a large domestic market share but has been complementing that with an aggressive international expansion in recent years.

Boeing_787_Dreamliner_ANA_Star_Wars

All Nippon Airways Boeing 787 in special Starwars livery. Source: ANA

Its landmark buy of Boeing 787 Dreamliners shall be seen in this context. The 787, for which ANA was the launch customer, is the kingpin in ANA’s expansion plans, where an expanding international network shall feed the established domestic network. Read more

Pontifications: Derivatives at Boeing

Hamilton KING5_2

By Scott Hamilton

May 9, 2016, © Leeham Co.: Last week proved to be significant when the CEO of The Boeing Co. and the head of the 737 MAX program each said the company is looking at revising its smallest member of the family, the MAX 7, and potentially enlarging the biggest member, the MAX 9.

Neither prospect was news. Jon Ostrower of The Wall Street Journal revealed the prospect of what he called the MAX 7.5, a slightly larger airplane than the current MAX 7. The idea of an airplane larger than the MAX 9, based on the MAX 9, was floated when Jim McNerney was still CEO.

What was news is that for the first time, the Boeing CEO and the head of the MAX program went on record essentially admitting the MAX line isn’t well positioned against Airbus after all. Or, on the lower end, to Bombardier.

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Bombardier’s Delta deal looking good, but don’t celebrate yet

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Introduction

Air Baltic CS300

Air Baltic will be the first operator of the Bombardier CS300. Source: Bombardier.

April 18, 2016, © Leeham Co.: Bombardier, if it didn’t dominate the news cycle in commercial aviation last week, must have come close. Consider:

  • The Wall Street Journal, and then Bloomberg, reported that BBD was near to winning a big order for 75+50 from Delta Air Lines for its C Series.
  • Reuters reported that BBD rejected demands from the Canadian federal government in Ottawa as conditions for investing US$1bn in the company. (Officials tried to walk this back some, saying talks continue.)
  • The head of corporate strategy for BBD came forward to forcefully argue for the investment as good for taxpayers, breaking what largely has been a cone of silence over the perceived merits of a deal
  • The US$1bn the Quebec provincial government agreed to invest last year remains unfunded.
  • BBD stock, which last year dropped to less than C$1, threatening the listings on the Canadian exchanges, jumped to C$1.75 at one point in anticipation of a Delta order.

While on balance, it seems likely Delta will order the C Series, Bombardier has been down this road before. Only a few months ago, the market and others were excited over the prospect that BBD was close to landing an order from United Airlines, only to see Boeing swoop in and grab the deal.

Summary

  • This is the second try at a major contract with Delta Air Lines.
  • The primary competition is against Embraer, not Airbus or Boeing.
  • We revisit our Skyline Risk Assessment, dormant for the extended period in which BBD had no sales of the C Series.

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Inflight Internet

By Bjorn Fehrm

06 April 2016, ©. Leeham Co., Hamburg, Germany: On the second day of the Aircraft Interior eXpo, AIX 2016, we checked out the In-flight Internet situation. What interested us was why is there such lousy Internet performance on many airlines today and what will be done about it over the next few years. We got a good picture on why things are as they are and how this will change within quite a short time.

Rather than go through what a lot of vendors will do, we will try to describe the root problems involved and what is done by the industry to change that. We will also mention some of the key players that are attacking the subject.

But let’s start with the problem. Figure 1 shows where the world’s main airline routes are right now.

World trafic map

Figure 1. World air traffic taken from FlightRadar24 at 23.00 CET on 05.04.2016. Source: FR24. Click to see better.

As can be seen, the world air traffic is not very evenly distributed. One third of the world has intense traffic and two-thirds not so much or none at all. Read more

Alaska, Virgin confirm merger

AS_VX MapApril 4, 2016, (c) Leeham Co.: Alaska Air Group and Virgin America confirmed weekend reports that they reached a deal to merge.

The replay of the Alaska webcast/conference call, with slide show, is here.

Rationale includes what LNC outlined in our March 29 post: growth, access to more gates and slots. Alaska officials said Virgin’s presences in California, combined with Alaska, will give Alaska to #1 market share position on the US West Coast, passing Southwest Airlines’ 21% by one percent.

Here are some highlights from the conference call:

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