Leeham News and Analysis
There's more to real news than a news release.
Boeing sees >800 deliveries in 2018
Jan. 31, 2018: Boeing sees more than 800 deliveries and revenue approaching $100bn this year, as it provides guidance concurrent with its 2017 financial results. Revenue last year was $93.2bn.
The company repurchased $9.2bn in stock last year, continuing its shareholder value program.
Boeing continues to transition from the 737NG to the 737 MAX and the 787-10, now certified, will see deliveries begin rather than airplanes going to inventory. These events contribute to the forecast higher deliveries this year compared with the 763 last year. The 777 program is in transition from the Classic to the X models, lowering deliveries. The production rate for the 737 increases this year from 47 to 52/mo.
The earnings press release is here. The earnings call is at 10:30am EST. This may be accessed here.
IBERIA gets upgraded A350-900
By Bjorn Fehrm
January 31, 2018, ©. Leeham Co: IBERIA will be the first airline to get the upgraded Airbus A350-900. The airline presented the news at the Fitur 2018 International Tourism Trade Fair in Madrid.
The airline’s first A350-900, delivered in June, will be the first A350-900 featuring the aerodynamic improvements we presented in October.
Bombardier Belfast operations are about more than C Series wings
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Introduction
By Scott Hamilton
Jan. 29, 2018, © Leeham Co.: Belfast, Northern Ireland: These days, when mention of Bombardier’s production facility in Northern Ireland is mentioned, only one thought comes to mind: wings for the C Series.
But the facility is more than one: wings for the C Series. Nacelles for the Pratt & Whitney Geared Turbo Fan engine for the Irkut MC-21 are also made in the same building. There are others, where fuselages and tail and wing components for the CRJ and multiple lines of business jets are also made.
Bombardier C Series final wing assembly plant, Belfast, Northern Ireland. Source: Bombardier.
The legacy of the facility dates to 1908, when the Short Brothers began building airplanes, including six Wright Brothers Flyers constructed under license.
It’s from the legacy of using composites on business jets and the CRJs that led to the C Series wings, using production methods that are more advanced than Airbus or Boeing.
Pontifications: 2018 starts off with a bang
By Scott Hamilton
Jan. 29, 2018, © Leeham Co.: This year isn’t even a month old. If the rest of the year continues like January, commercial aviation is in for an exciting year.
The stunning news, of course, was last week’s shocking defeat for The Boeing Co. in its trade complaint over the Bombardier C Series sale to Delta Air Lines.
Nobody I know of thought Boeing would lose. It did, and by a unanimous verdict.
Then there was the order from Emirates Airline for the Airbus A380, saving the airplane from almost certain program termination.
The Boeing 787-10 was certified. The first delivery will be in March.
And Qatar Airways said it will receive the first Airbus A350-1000 next month.
Let’s look at these events.
What happened and what’s next in Boeing-Bombardier trade case?
Jan. 26, 2018, © Leeham Co.: The decision by the US International Trade Commission that Bombardier did no harm to Boeing with its sale of 75+50 CS100s to Delta Air Lines is a shocker.
The UK and Canadian governments thought Boeing would win, as it had at the US Department of Commerce. Observers and media, including LNC, were unanimous in believing Boeing would win. Bombardier did, too—already filing notices at the World Trade Organization and NAFTA to contest Commerce’s stiff tariff decisions.
With a 4-0 decision by ITC that Boeing suffered no harm, two questions arise:
What happened, and What’s next?
Boeing statement on loss in Bombardier trade case
Statement by The Boeing Company
January 26, 2018
“We are disappointed that the International Trade Commission did not recognize the harm that Boeing has 
suffered from the billions of dollars in illegal government subsidies that the Department of Commerce found Bombardier received and used to dump aircraft in the U.S. small single-aisle airplane market. Those violations have harmed the U.S. aerospace industry, and we are feeling the effects of those unfair business practices in the market every day.
“While we disagree with the ITC’s conclusion today, we will review the Commission’s more detailed opinions in full as they are released in the coming days.
“Boeing remains confident in the facts of our case and will continue to document any harm to Boeing and our extensive U.S. supply chain that results from illegal subsidies and dumped pricing. We will not stand by as Bombardier’s illegal business practices continue to harm American workers and the aerospace industry they support. Global trade only works if everyone adheres to the rules we have all agreed to. That’s a belief we will continue to defend.”
Breaking News: Bombardier wins at USITC–no harm to Boeing, in stunning unanimous vote
Jan. 26, 2018: In a shocking reversal and a stunning defeat for Boeing, the US International Trade Commission ruled unanimously Boeing was not harmed by Bombardier’s government subsidies and low-price deal to sell 75+50 CS100s to Delta Air Lines.
This means the prospect of tariffs, of 292%, is dead.
Details to come.
Chinese and Russian Widebody takes shape. Part 3.
By Bjorn Fehrm
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Introduction
January 25, 2018, © Leeham Co.: In the second article about the new Chinese/Russian widebody, CR929, we looked at the size of the aircraft and its passenger capacity. The CR929 can be best described as a shorter range version of Boeing’s 787-9. We also presented the chosen technologies for the project.
Now we continue and look at the challenges the aircraft poses to the involved manufacturers. Neither of them (COMAC of China and United Aircraft of Russia) have developed and certified an aircraft like the CR929 before.
Summary:
- The Chinese and Russian widebody program has high ambitions. The structure shall be composites and the systems state of the art.
- We now go through the aircraft’s chosen technologies and review what experience base the Chinese and Russian aeronautical industry has and what challenges they will face. Read more