Odds and Ends: CSeries; Mitsubishi MRJ; Air France; Saving airlines

CSeries: Bombardier provided a short update from program head Rob Dewar in advance of its 2014 earnings call Thursday. The flutter test has been completed, CS300 is moving toward joining the flight test fleet and the fleet has completed 900 hours of the 2,400 required toward certification.

  • BBD today revealed the identify of the customer for 24 CRJ-900s, announced Dec. 30: it’s American Airlines.
  • Luxair plans to order some Q400s to replace its Embraer E145 jets.

MRJ90: The Mitsubishi MRJ is Japan’s first commercial airliner since the YS-11 turboprop in the last century. It’s a bold project intended to break into a highly competitive market sector. Air&Space magazine of the Smithsonian Institute profiles the MRJ.

Air France: Aviation Week has a dark opinion of the future of Air France. It’s worth a read.

Saving airlines: While Aviation Week has a dim view on the future of Air France, The Wall Street Journal has a piece about how private equity saved airlines. (Subscription may be required).

 

Regional operations with the Turboprop, prop-jet or Jet

By Bjorn Fehrm

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Introduction

08 Feb 2015: Passenger traffic is growing the world over on a regional, domestic and international level. For domestic and international airlines the choice of mainline transport aircraft is clear today: there are only two vendors, Boeing and Airbus, and they produce similar products.

For regional transportation there is more choice. First of all, one can chose typeleehamlogo copyright 2015 small 210_87 pixels of aircraft, turboprop or jet. Within jet, there are several OEMs that are active. The choice in turboprop is more restricted. In practice, the choice stands between the classical turboprop with ATR and a faster type from Bombardier, the Q400 “Prop-Jet” as it is called, as its speed lands between the classical turboprop and regional jet.

The question is, what are the real differences between them in terms of design, passenger comfort and economics and what is the right choice for a market segment? We will take a deeper look into this by analyzing the ATR72 as the classical turboprop, the Bombardier Q400 as the Prop-Jet and CRJ700 as the regional jet.

Summary:

  • The ATR72-600, Bombardier Q400 and CRJ700 are all about the same size, around 70-80 seats single class or 60-70 seats dual class.
  • They offer different comfort levels, and it is not all about speed.
  • In developing the economics in two steps we seek the crossover points between the different types.

Read more

Odds and Ends: Real-time flight tracking; LEAP-1A testing

Real-time flight tracking: At last, the airline industry is adopting rules to require real-time flight tracking. ICAO, the international organization governing rules and regulations, approved one to require real time tracking next year. The action is long overdue.

Singapore Airlines has made the decision to begin installing the system sooner.

Initially data will be transmitted at 15 minute intervals but if a flight anomaly occurs, transmissions will occur at one minute intervals. While the system won’t prevent real-time accidents (or hijackings), locating airplanes sooner could save lives if an accident is survivable or accelerate recovery of flight data recorders and cockpit voice recorders to solve an accident sooner and potentially prevent accidents in the future from the results.

LEAP-1A testing: The CFM LEAP-1A, destined for the Airbus A320neo family, is now in flight testing, reports Flight Global.

 

Odds and Ends: AirAsia 8501; SkyMark Airlines bankruptcy; One year for MH370; Billy Bishop Airport; PNAA conference

Jan. 29, 2015: AirAsia 8501: The first report by the Indonesian government has been issued, per international rules, but the public portion is pretty uninformative if press reports are to be believed. At the same time, leaks indicate that the pilots may have turned off a key set of computers shortly before the airplane went out of control. There’s no apparent information yet why they might have done this. Were they responding to a malfunction, real or perceived? Was there some other reason? Is the leak on this even accurate?

Previous reports and statements from the government ruled out terrorism, bombs, and even the weather. We understand as well that there has not been a safety-of-flight issue. This leaves pilot actions and contributing factors as the likely focus. What series of events combined to lead to the accident remains to be determined. Read more

A350-1000 gets upgrade to 387 seats; we analyse the consequences

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By Bjorn Fehrm

Introduction

28 Jan 2015: Exactly one week after the first Airbus A350 started regular service between Doha and Frankfurt with Qatar Airways (on 15th of January), upgrades to the A350 capacity was announced by Airbus in a presentation to German investors.  The forthcoming upgrade was hinted to media at Airbus annual press conference two weeks ago by Didier Evrard, Airbus head of programs, but no details were given at the time.

leehamlogo copyright 2015 small 210_87 pixelsThe changes were now spelled out more in detail, including pictures of the changed sections of the cabin. Having known about these changes for some time, we can now present the goals of these changes and make a first assessment of how they affect the competitive positioning of the A350.

Summary:

  • The improvement program brings the Cabin-Flex lavatories to the A350 interior catalog, enabling smaller lavatory footprint and thereby increased seating densities.
  • Airbus has also reworked galleys around the third and fourth door pairs, thereby freeing up galley area in other parts of the cabin.
  • Taken together, Airbus claims an 18 seat improvement for the A350-1000, making it a 387 seater in a two class configuration.
  • We apply the changes in our cabin model and examines how this will change the competitive landscape between Airbus A350 models and Boeing’s 787 and 777 families.

Read more

First analysis of Mitsubishi Regional Jet, MRJ

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By Bjorn Fehrm

Introduction

25 Jan 2015: Japan has not produced a commercial aircraft since 1973, when the last YS-11 twin engined turboprop rolled off the assembly line. The YS-11 was developed by a consortium of Japanese “heavies,” where two are also active in the creation of leehamlogo copyright 2015 small 210_87 pixelsthe MRJ, Mitsubishi Heavy Industries and Fuji Heavy Industries. This time Mitsubishi Heavy Industries is very much in command as they own 64% of the company set up to develop, assemble and market the aircraft, Mitsubishi Aircraft Corporation, Fuji Heavy Industries are working as design consultants this time.

MRJ engine run

Figure 1. Mitsubishi MRJ90 starting its Pratt & Whitney GTF engines for the first time. Source: Mitsubishi.

The first MRJ prototype has run its engines 10 days ago and is preparing for first flight later in the spring. It is therefore time to take a closer look at the first model, MRJ90, and compare it to its direct competitor, Embraer 175 E2.

Summary:

  • The MRJ90 and E-Jet 175 E2 are the same size, around 90 seats single class or 80 seats dual class;
  • Both aim for scope clause acceptance at 76 seats despite being to heavy; and
  • They are different in their fuselage packaging but surprisingly similar in their capabilities.

Read more

Rolls-Royce and the leasing market

By Bjorn Fehrm

22 Jan. 2015: When talking to leasing companies at the annual Growth Frontiers 2015 conference in Dublin, Rolls-Royce is the engine manufacturer that is perceived as the least desirable on their airplanes.

This has no reliability or performance background, Rolls-Royce has a good reputation for producing solid and reliable engines which serves their operators well. It is rather the success of Rolls-Royce’s after market program, TotalCare, which is the at the root of the Leasing companies problems with Rolls-Royce.

Read more

Odds and Ends: AirAsia; Philippine Air, Russia defers

AirAsia: Group CEO Tony Fernandes made appearances on international news programs, providing his first interviews away from the direct events surrounding Flight 8501’s crash. Here is a transcript of his interview on Bloomberg News.

The interviews come as the first read-outs of the cockpit voice recorder and flight data recorder have been undertaken. Indonesian officials are quoted as saying the alarms overheard on the CVR were “screaming,” a description which has been criticized by some, who point out correctly that alarms don’t “scream.” This is certainly true, but we take a more charitable view about the term. This could be a reflection of English being a second language to the government officials and merely a translation issue.

Regardless, the data seems to confirm early reports that the flight was caught in massive up- and downdrafts that threw the airplane into a stall and out of control. Former NTSB crash investigator told us he believes the airplane went into a tight descending spiral and broke apart when it hit the water.

Philippine Air, Russia deferrals: PAL deferred 38 Airbus narrow- and widebody aircraft, according to this news report. Boeing is in talks to defer deliveries to Russian airlines, according to Bloomberg.

Odds and Ends: BBD’s Sheridan to Nordic; United and 777s

BBD’s Sheridan: Rod Sheridan, who retired last year after 20 years at Bombardier, has been named vice chairman of Nordic Aviation Capital, the world’s largest lessor of turboprop aircraft. Nordic owns more ATR turboprops and has more on backlog than any other company.

Sheridan was vice president of sales and asset management at Bombardier. His retirement last year was considered by many in the industry to be a major loss to BBD’s ailing aerospace division, coming as it did on the heels of major personnel changes as BBD restructured the unit. Turmoil continued with the departure last month of Ray Jones, the head of sales, within weeks of Sheridan’s departure.

Sheridan was responsible for Bombardier’s commercial entry into Russia. He was key to opening the CSeries market to lessors.

United and 777-300ERs: United Airlines is set to place an order for 10+10 Boeing 777-300ERs, reports Bloomberg. An announcement could come as early as this week. These would be UAL’s first -300ERs. Legacy United was launch customer of the 777-200 and legacy Continental Airlines ordered the -200ER. Only American Airlines in the US operates the -300ER and this became reality only in recent years.

The UAL order will be an important step in Boeing bridging the production gap for its 777 line until entry-into-service of the 777X in 2020. But it will come at a cost. Two market sources familiar with the deal say United will get the airplanes for around $130m, a sharp discount to the normal discounted price of around $150m.

Ryanair: from 17 clicks to 5, we are changing

By Bjorn Fehrm 

20 Jan 2015: On the second day of Growth Frontiers 2015 conference in Dublin, Ryanair former CFO, now Board Member Howard Millar, told us about a changed company.

“Ryanair is today the largest airline in Europe with 82 million passengers carried during Fiscal Year 2014 (April 2013 to March 2014). Growth is at record level and RyanAir is planning to grow to more than 100 million passengers during the ongoing Fiscal Year 2015. Read more