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Introduction
As the market prepares for Bombardier’s 2014 year end earnings call tomorrow, CEO Pierre Beaudoin has his work cut out for him to restore confidence among the airlines and lessors who have ordered the CSeries and who might.
The abrupt departure last month of yet another aerospace sales chief, Ray Jones, is the third top executive to leave within a short time. Gary Scott resigned as CEO of the Aerospace unit for personal reasons. Chet Fuller, Scott’s successor, left after his three year contract wasn’t renewed. Jones followed Fuller out the door after 13 months. Guy Hachey, president of the aerospace unit, left in a corporate reorganization of the unit.
Key people is sales and marketing also departed after Jones took over. Philippe Poutissou, VP-Marketing, was unceremoniously ousted as Jones wanted his own team. Rod Sheridan, Vice President Commercial Aircraft Customer Finance, left and joined Nordic Aviation as vice chairman. There has been turnover in the sales force as well.
Summary
Posted on February 11, 2015 by Scott Hamilton
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 type 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:
Posted on February 8, 2015 by Bjorn Fehrm
A TransAsia ATR 72 crashed yesterday on take off from downtown airport.
Investigators will look at the following:
Recovery of the flight data recorder and cockpit voice recorder should provide information quickly to answer many of the questions above but the full investigation typically takes a year or more.
Posted on February 4, 2015 by Scott Hamilton
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Introduction
Jan. 5, 2015: Conventional wisdom suggests that turboprops are making a bit of a comeback because these remain far more efficient for routes up to 400 miles than jets, particularly at high fuel prices.
Even though oil prices have plunged to a seven year low, few expect that long-term prices will remain at today’s levels. While fuel between $50-$60bbl breathes new life into aging regional jets, there remains efforts in several corners to develop a new generation of turboprops.
Posted on January 5, 2015 by Scott Hamilton
By Philippe Poutissou
Special to Leeham News and Comment
Introduction
Dec. 15, 2014: The market for turboprop aircraft has been strong for nearly a decade, yet there has been limited new product development in the segment. This has some regional airlines getting nervous about their future, in particular those who specialize in serving smaller markets with 30- to 50- seat turboprops built in the 1980s and 1990s. Which aircraft will replace the robust, but not indestructible, Bombardier DHC-8, Saab 340 and Embraer Brasilias?
Setting aside the technical challenges of developing and certifying a new aircraft type (of which there is ample evidence), the market challenge for smaller turboprops comes down to a question of limited revenue potential. Due to overall pressure on aircraft prices and demand that is highly fragmented, the business case for an aircraft OEM becomes risky and difficult to justify.
Summary
Posted on December 15, 2014 by Scott Hamilton
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Introduction
Nov. 30, 2014: Airlines now lease about 50% of their aircraft under a variety of mechanisms: operating, finance, leveraged and Islamic leases, just to name a few.
There are operating leasing, special purpose and “house” companies. There are leasing units of investment banks, insurance companies and a host of others.
Ireland is a popular leasing venue because of favorable tax laws.
The Big Four airframe OEMs have long sold aircraft directly to lessors, and the emerging airframe OEMs, COMAC and Irkut, have seen orders placed by emerging lessors in their home countries. ATR, the turbo-prop OEM, also has received orders from lessors.
Today we look at the lessor relationships with Airbus and Boeing.
Summary
Posted on November 30, 2014 by Scott Hamilton
Airbus, ATR, Boeing, Bombardier, Comac, Embraer, Irkut, Mitsubishi, Premium
737, 747-400, 747-8, 777-300ER, A320, AerCap, Air Lease Corp., Airbus, ATR, Boeing, Bombardier, Comac, Embraer, GECAS, George Batchelor, ILFC, Irkut, Mitsubishi, Steven Udvar-Hazy
Rescuing a polar bear cub: Long-time readers of this column know we’re fascinated with polar bears, so when we received the following press release, we couldn’t help but share the story with you.
Mi-26 saves polar bear cub
The crew of a Russian Mi-26 military helicopter from the Eastern Military District Army Aviation airbase saved a baby polar bear from starving to death in the Arctic, after the young bear became separated from its mother.
The Mi-26 was carrying out a routine transport flight in the Arctic zone, delivering goods from Anadyr to Wrangel Island, when one of the crew spotted a lone polar bear cub wandering along the Chukotka shore. The crew carried out several sweeps of the area, but there was no trace of the cub’s mother. The decision was therefore taken to pick up the polar bear cub.
Posted on November 7, 2014 by Scott Hamilton
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Now open to all Readers. (Nov. 29, 2014)
Introduction
Oct. 15, 2014: Embraer had the opportunity to design a clean-sheet airplane as a successor to the E-Jet to respond to the Bombardier CSeries, with the 100-110 seat CS100 a direct competitor to the E-190/195.
But after Airbus and Boeing launched the A320neo and 737 MAX families, including the small A319neo and 737-7 MAX, officials chose the more conservative play to re-engine the E-Jet at an estimated cost of $1.7bn. An entirely new airplane meant up-sizing to be directly competitive with the CS300 and the Baby Airbus and Boeing. This would have been a crowded field that didn’t make sense.
That said, this is an industry that requires long-term planning. Luis Carlos Affonso, SVP of Operations and COO Commercial Aviation, says Embraer needs more than one family of airplanes. The question is, what becomes the next family.
Summary
Posted on October 15, 2014 by Scott Hamilton
Airbus, ATR, Boeing, Bombardier, Pratt & Whitney
Airbus, ATR, ATR 42, ATR-72, Boeing, Bombardier, E-175, E-190, E-195, E-Jet, E-Jet E2, Embraer, Luis Carlos Affonso
The news last week that Bombardier reorganized its business units, laid off another 1,800 employees and saw the retirement of Guy Hachey, president and CEO of the aerospace division, was viewed by some media and observers as an indictment of the CSeries program. While it’s certainly true that delays in the program weigh heavily on BBD, the problems don’t stop with CSeries.
Bombardier has 203 firm orders and 310 commitments for CSeries. This delivery stream doesn’t include any potential rescheduling as a result of the grounding of the Flight Test fleet from May as a result of the engine incident.
Slow sales of the CRJ, Q400 and business jets–as well as program development issues with a new corporate jet–all combined to drag down financial performance and bleed cash. Bombardier doesn’t have the balance sheet strength of Boeing or Airbus, nor strong sales of other airplane family members, to weather the challenges of new airplane development programs.
Posted on July 28, 2014 by Scott Hamilton
Orders continued to trickle in as the Farnborough Air Show winds down (there could be others not listed here).
Items of interest:
Overall reflections:
Posted on July 17, 2014 by Scott Hamilton