Leeham News and Analysis
There's more to real news than a news release.
Airbus launches the longest range widebody in the below 300 seat market
By Bjorn Fehrm
March 20, 2018, ©. Leeham News, Toulouse: Airbus launched the 251t version of the A330neo in Toulouse today. The new weight variant increases the range of the A330-800 and A330-900, making the A330-800 the longest range airliner in the 250- to 300-seat segment.
Airbus also presented an update on the progress of the A330neo program, now in the middle of flight tests.
Figure 1. A330neo changes from the A330ceo. Source: Airbus.
Production transformation key to Boeing NMA
March 20, 2018, © Leeham News: As Boeing builds the business case for the New Midrange Airplane (NMA, or 797), dozens of major factors come into play, along with the hundreds or thousands of smaller one.
The market demand, of course, is a well-known business case element.
So is price to the customer, the design and capabilities of the airplane, the engines and the technology of them, whether there will be a sole- or dual-source engine, where the airplane will be assembled and how it will be produced.
- .Production transformation is the focus of the Southeast Aerospace & Defence Conference June 25-27, organized by Leeham Co. and Airfinance Journal.
One Boeing official told LNC that the 797 is as much about production as it is everything else. This goes to cost and cost goes to pricing.
Automation, robotics, digital design, 3D printing and additive manufacturing are key to producing the 797. Many elements are already in place on other Boeing programs, most described in the media already.
One key supplier is Dassault Systemes.
NMA focus needs to be on engines
Subscription Required
Now open to all readers
Introduction
March 19, 2018, © Leeham Co.: As the market awaits a decision by Boeing whether to launch the New Midrange Aircraft (NMA, or 797), focus has been on the aircraft’s definition and market demand.
It should be on the engines.
It doesn’t matter whether Boeing designs a fabulous airplane that’s the next best thing to sliced bread. What matters is whether the engines will be ready in time for Boeing’s suggested entry-into-service and if they are, whether they will be reliable out of the box.
The recent track record isn’t all that encouraging. Neither is Boeing’s preferred timing.
Summary
- CFM, GE, Pratt & Whitney and Rolls-Royce each had problems with their new engines. All continue.
- The Boeing NMA requires brand new engines, not derivatives.
- Engine development and certification within the Boeing preferred timeline is sporty at best.
Pontifications: Boeing faces thousands of retirements in next five years
By Scott Hamilton
March 19, 2018, © Leeham News: Boeing faces thousands of retirements in its engineering and touch-labor force ranks over the next five to 10 years, with a limited worker pool for replacements.
A national economy with a low unemployment rate of about 4.1% exacerbates the challenges of finding talent.
These numbers are important to Boeing’s current higher production rate ambitions.
They are even more important as Boeing looks to develop the New Midrange Airplane (NMA, aka 797).
LNC first discussed the looming shortage of engineers in connection with the potential creation of a new company with Embraer.
The Southeast Aerospace and Defence Conference in Mobile focuses on production transformation. Go to Airfinance Journal for program information.
Boeing’s NMA decision entering final stretch
By Bjorn Fehrm
Subscription Required
Introduction
March 15, 2018, © Leeham News: Boeing’s NMA or 797 is taking final form ahead of a decision to launch the program later in the year.
Jon Ostrower has published the first picture of the projected aircraft, which he acknowledges might change in its final form. Figure 1 shows the smaller of the two NMA models, the 224-seat 797-6X.
Figure 1. The first sketch of the smaller 797-6X with 224 seats. Source: JonOstrower.com
We take a closer look at the 797 in its latest definition.
Summary:
- The Boeing NMA is called the 797-6X and 797-7X when presented to airlines.
- The 797 is best compared with the 767. Cabin dimensions are close to the 767-200 for the 797-6X and to the 767-300 for the 797-7X.
- The use of a more efficient cross-section, Carbon Fibre design, higher aspect ratio wing and modern engines makes the 797 a lighter and more efficient aircraft than the 767.
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.
