Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- Bjorn’s Corner: Air Transport’s route to 2050. Part 20. May 2, 2025
- Supplier Howmet exceeds expectations despite tariffs May 1, 2025
- Airbus 1Q2025 results: So far, so good, but US tariffs make future results unpredictable May 1, 2025
- Does an Airbus A220-500 need a new wing and engines? May 1, 2025
- Teamsters, Boeing have a new contract April 29, 2025
China tariffs on Boeing unlikely
Analysis
March 14, 2018 © Leeham News: Boeing is unlikely to face retaliatory tariffs from China following President Trump’s imposition of tariffs on China’s steel industry.
LNC believes China’s own self-interest for its airline, leasing and aerospace industry would make imposing tariffs on Boeing counter-productive.
Several media reports this week raise the prospect of China retaliating against Boeing, including these at CNBC and The New York Times. Boeing stock is off $10 or 3% in mid-day trading.
Airbus, Boeing respond differently to engine problems
March 14, 2018, © Leeham Co.: Airbus and Boeing have engine issues on in-service airplanes, but customers point to very different responses to getting their 
grounded airplanes back in the air.
Airbus’ problems with A320neos powered by Pratt & Whitney Geared Turbo Fan engines have been making headlines almost since introduction in late 2016.
Less well publicized, but nevertheless by now well-known within the industry, has been Boeing’s 787 powered by Rolls-Royce Trent 1000 engines.
Pontifications: Small suppliers prepare for production transformation
By Scott Hamilton
March 12, 2018 © Leeham Co.: When it comes to preparing for increasing automation, robotics and transforming the way airliners will be built in the future, focus rests primarily on the big OEMs and suppliers.
The small suppliers also must prepare for this transformation.
Tool Gauge of Tacoma (WA) is one such company. I sat down with Jim Lee, manager of sales and marketing, at the Pacific Northwest Aerospace Alliance conference last month in Lynnwood (WA) to talk about transformation.
The Southeast Aerospace & Defence Conference looks at the Transformation in production and building for the future. It’s June 25-27 in Mobile (AL).
A321neo plus a stretch too far for NMA: Avitas
Published 05 Mar 2018 by Airfinance Journal
Special to Leeham News.
March 8, 2018, (c) Airfinance Journal: A leading appraisal firm questions whether Airbus should respond to Boeing’s proposed new midsize aircraft (NMA) simply by enhancing its existing product line.
John Vitale. Source: Airfinance Journal
“There is a gap, a natural gap that needs to be filled, so I am not sure whether the A330 coming down…and the A321 coming up, fills the gap,” said John Vitale, president and chief executive officer of Avitas, speaking on a panel of appraisers at Airfinance Journal’s Korean Airfinance event, adding: “Airbus claims the A321 has all this range and that they can put in as many seats as they are talking about. Well, no you can’t in an equal comfort level.”
However, Vitale acknowledges a possible further stretch by Airbus of its A321neo, the A322, or enhanced versions, such as the ‘A321neo-plus’, or even an ‘A321neo-plus-plus’“pushes out the timing of the NMA aircraft.”
Norwegian’s creative accounting
By Bjorn Fehrm
March 07, 2018, ©. Leeham Co: In our February 14th article about Norwegian Air Shuttle’s operational losses, we used straightforward calculations to show the airline was losing around 2bn NOK or $300m in the fourth quarter, besides losses in 1H2107. When the airline presented the 2017 results the next day, creative accounting netted the year’s losses to 299m NOK or $32m.
This might change. The Financial Supervisory Authority of Norway (Finanstilsynet) is investigating Norwegian’s accounting methods for 2017.
Read more
Retirement wave coming that will boost A330neo sales, says Airbus
March 6, 2018: Airbus is ramping up the messaging for the slow-selling A330neo, reiterating its view that a wave of retirements is coming from current A330 operators that will support new sales.
LNC first reported the message Dec. 6.
Jeff Knittel, the new president of Airbus Americas, reinforced this message yesterday at an industry conference.
Aircraft financing “robust,” but ExIm Bank needs reinstatement, Boeing says
March 5, 2018, © Leeham Co.: Global financing for new and used aircraft is as robust as it’s ever been, says the president of Boeing Capital Corp.
Tim Myers, president of Boeing Capital Corp. Boeing photo.
Tim Myers, speaking to reporters on a telephone press conference today, said new sources of financing, more of it and innovative structures are here to support record levels of aircraft deliveries and used aircraft financings.
Even so, he calls for the reinstatement of the US ExIm Bank as a source of funding support in the future.
Engine makers “inside the tent” on Boeing NMA, but airframer still ponders provider
March 5, 2018, © Leeham Co.: The three engine makers, CFM/GE, Pratt & Whitney and Rolls-Royce, are the only suppliers that have been brought “inside the tent” by Boeing for the New Midrange Aircraft, a company executive said today.
Launching the program is critical on the engine companies, says Randy Tinseth, VP marketing for Boeing. Boeing hasn’t decided—officially—whether it will have a
Randy Tinseth. Photo via Google images.
single-engine or dual-engine source for the aircraft because the program hasn’t been launched.
Market intelligence tells LNC that Boeing wants two engine choices. Intel also indicates all three engine OEMs view the market demand as sharply smaller than Boeing’s publicly-stated forecast of 4,000 Middle of the Market sector airplanes over the next 20 years.
Insignificant impact on Boeing from aluminum tariff: JP Morgan
March 2, 2018, © Leeham Co.: President Trump this week announced tariffs of 25% and 10% on steel and aluminum imports, sparking a sharp stock sell-off and provoking fears of a trade war.
Ever parochial in its coverage, LNC asked Boeing what the impact will be. A spokesman said the company is still assessing the impact.
But the aerospace analyst for JP Morgan today said it should be very little.
Southwest CEO sees 60% of fleet becoming the 737-7
March 1, 2018, © Leeham Co.: Southwest Airlines needs about 100 more Boeing 737-8s before turning its
Gary Kelly, CEO of Southwest Airlines. Photo via Google images.
attention to the 737-7, CEO Gary Kelly told LNC in a press scrum at the 2018 Aviation Summit today, sponsored by the US Chamber of Commerce.
The current fleet of 737-700s won’t see retirements until about 2022, at which time the need for the 7 MAX arises.