Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
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Farnborough: Day 4 orders
July 19, 2018, (c) Airfinance Journal: Announcements at today’s show followed the same pattern as earlier in the week a fair
amount of undisclosed orders. The first three days of the air show saw 292 aircraft orders undisclosed.
Of today’s total, undisclosed orders represented 125 Airbus and Boeing aircraft, while AirAsia X, Hawaiian Airlines, Vietjet and lessor Novus Aviation Capital announced commitments for 108 aircraft.
US seeks arbitration for Boeing “harm” in WTO subsidies case
July 19, 2018, © Leeham News, Farnborough: Without fanfare and with no announcement from Boeing or the US Trade
Representative, an official request has been filed with the World Trade Organization to commence arbitration in the 14-year trade dispute between the US and Europe over subsidies to Airbus.
In a short filing Friday, as the international press and international aviation community moved to Farnborough for the 2018 international air show, the US filed its request to begin arbitration.
Farnborough: Boeing Global Services on trajectory for 9% YOY growth
July 19, 2018, © Leeham Co.: Boeing Global Services picked up more than $2bn in new contracts at the Farnborough Air Show, a good boost as it moves into its second year as a stand-alone business unit within The Boeing Co.
BGS provides maintenance, repair and overhaul services; technical support; supply chain engineering; and passenger-to-freighter conversions, among other things.
Stan Deal, CEO of BGS, said 2017’s revenues were $14.5bn and $16.5bn of orders. Last year was the first BGS financial data was segmented from consolidated earnings data. This represented a 6.5% growth over 2016.
In the first quarter this year, revenue grew again, “pointing to a trajectory of growth of 8.8% year-over-year,” Deal said.
Second quarter numbers will be released next week.
BGS combined Boeing Commercial Aviation Services and a similar unit in its defense unit.
Mitsubishi shouldn’t be worried over support following Boeing-Embraer deal: BGS chief
July 18, 2018, © Leeham News, Farnborough: Mitsubishi’s MRJ will be supported even if Boeing and Embraer complete a deal to form a new company in which Boeing is an 80% shareholder.
Embraer’s E175 and E190 jets will compete with Mitsubishi’s MRJ70 and MRJ90 respectively. Boeing entered into a product
and parts support agreement with Mitsubishi when the MRJ program was launched.
Stan Deal, CEO of Boeing Global Services, said in an interview with LNC that despite the competition, BGS will honor the Boeing commitment to Mitsubishi.
BGS already supports Airbus aircraft, which of course fiercely compete with Boeing.
Farnborough: Orders on Day 3
July 18, 2018, (c) Airfinance Journal: Firm orders had largely dried up by day three of Farnborough 2018, although Boeing could celebrate some big commitments for its Max narrowbody from Vietjet and four undisclosed customers. Elsewhere Bombardier won its first order of the show after Uganda’s flag carrier signed for CRJ900s.
Boeing’s P8 hits six years in service
The object below the APU outlet is one of many sensors on the Boeing P8-A Poseidon. Source: Scott Hamilton
July 18, 2018 © Leeham News, Farnborough: Boeing’s P8-A Poseidon, the 737-based airplane best known for anti-submarine patrols, entered service with the US Navy six years ago.
Since then, Australia, New Zealand, the UK and Norway are among the countries ordering the airplane and the first Navy P8 entered heavy maintenance here.
Boeing produces the P8 at a 1.5/mo rate, which is full rate.
The Navy ordered 117 P8s, but there is potential to order more.
Farnborough: NMA business case appears to weaken, evidence at air show indicates
Analysis
July 18, 2018, © Leeham News, Farnborough: The biggest, longest-running story at this year’s Farnborough Air Show is about an airplane that doesn’t exist: the prospective Boeing New Midmarket Aircraft (NMA or 797).
And the underlying story that’s emerging from the buzz on the sidelines and interviews with key observers and industry participants is that Boeing’s business case for the airplane appears to be getting weaker, not stronger.
Farnborough: Good days for Embraer, 777F
July 18, 2018, © Leeham News, Farnborough: Embraer came roaring back in the first two days of the Farnborough Air Show after a slow year last year.
Boeing’s 777F saw a surge of orders and commitments and the 747-8F also landed some new commitments.
Through Tuesday, the Brazilian manufacturer announced orders, options and commitments for 265 members of the E1 and E2 EJet families.
These are:
Farnborough: Day 2 orders tally
July 17, 2018 (c) Airfinance Journal: Day two of the Farnborough air show saw David Neeleman’s new US airline commitment for 60 Airbus A220-300 aircraft, a story that was first revealed by Airfinance Journal on 11 June. Embraer announced commitments for 270 aircraft from six customers.
Farnborough: Boeing Global Services ponders 777-300ER P2F program
July 17, 2018, © Leeham News, Farnborough: Boeing Global Services is studying the world’s first passenger-to-freighter conversion program for the 777-300ER, BGS president Stan Deal revealed to LNC today at the Farnborough Air Show.
Boeing sells the 777-200LRF as a new freighter and third parties are gearing up for a 777-200ER P2F program, but up to now, there hasn’t been a -300ER P2F program contemplated.
The -300ERF would be targeted for the volumetric cargo market as opposed to the density-based market that is served by the 777F.
Deal said BGS hopes to conclude its study by fall. A potential conversion cost is not yet known.