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Oct. 12, 2017, © Leeham Co.: Boeing’s brash and controversial move to file the trade complaint with the US Department of Commerce is a bold gamble designed to kill the Bombardier CSeries entirely, not just block it from the US market, people familiar with the strategy tell LNC.
The threat Boeing fears from the CSeries is not really about the 737-700 or 7 MAX, they say, but truly about the future of the 737-800 and 8 MAX.
While Boeing as clear in its filings with the US International Trade Commission (ITC) and Department of Commerce (DOC) about the alleged threats, some insight to Boeing’s thinking explained by people familiar with the situation was provided.
Posted on October 12, 2017 by Scott Hamilton
Oct. 10, 2017: The US Department of Commerce concluded Bombardier was uncooperative, didn’t answer its questions and impeded the trade investigation in the Boeing complaint.
Accordingly, under US law, Commerce could draw negative conclusions toward Bombardier and found it “guilty” (our word) of violating anti-dumping laws in its sale of the CS100 to Delta Air Lines.
Posted on October 10, 2017 by Scott Hamilton
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Oct. 9, 2017, © Leeham Co.: When Boeing launched the 787 program in 2003, an after-market maintenance program called Gold Care followed.
It wasn’t successful. Few customers signed up for it.
Stan Deal, CEO of Boeing Global Services.
But the lessons learned are important for Boeing’s drive to vastly expand its presence in the global commercial airplane after-market business.
Boeing Commercial Airplanes and Boeing Defense, Space & Security (and the latter’s predecessor, Integrated Defense Systems) provided services to the airlines, lessors and government customers, but now there is a dedicated business unit.
Boeing Global Services was announced nearly one year ago, on Nov. 21. When Boeing reports its third quarter earnings at the end of this month, for the first time revenues and profits for BGS and its predecessors will be a line-item in the earnings statements.
Stan Deal, the CEO of BGS, acknowledged the poor start of Gold Care in an interview with LNC. But from this unhappy experience, Boeing learned what officials hope lays the foundation of a new, robust business.
Posted on October 9, 2017 by Scott Hamilton
Here it is, the press release from the US. The tariff is what Boeing originally asked for, 79.82%. A far higher one was expected, following last week’s subsidy determination.
Posted on October 6, 2017 by Scott Hamilton
October 06, 2017, ©. Leeham Co: We introduced the Airbus “Blade” laminar flow research program in the last Corner. Now we continue to look into what this research is all about.
We will explain the difference between laminar and turbulent flow (really, laminar and turbulent “boundary layer” flow) and discuss some of the work that has been done with laminar flow structures.
Posted on October 6, 2017 by Bjorn Fehrm
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Oct. 5, 2017, © Leeham Co.: Airbus is gearing up to increase the production rate of the A350 from 2018’s planned 10/mo to 13/mo, perhaps as early as the following year, LNC has learned.
The move follows Boeing’s announcement in September that it will increase the production of the 787 from the current 12/mo to 14/mo in 2019.
Airbus is producing the A330 at a rate of 6/mo.
Posted on October 4, 2017 by Scott Hamilton
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Introduction
Oct. 2, 2017, © Leeham Co., Grapevine (TX): American Airlines officials dodged commenting about the specifics of the Boeing-Bombardier trade dispute when asked about it at the investors/media day last week in this Dallas suburb.
Instead, the general counsel, Steve Johnson, offered up only a general statement supporting the Trump Administration’s hard line on trade.
The reason for this generality is obvious: American, along with Delta Air Lines and United Airlines, is engaged in its own trade war and needs support from the Administration.
AA, DL and UA are battling Big Three airlines from the Middle East over being subsidized and abusing Open Skies treaties. The US carriers want Trump to knock down the ME3, Emirates Airlines, Qatar Airways and Etihad Airways.
Oddly, no question was asked of the American officials about the current state of the battle during the day.
LNC asked American CEO Doug Parker about the issue following the event, however.
Posted on October 2, 2017 by Scott Hamilton
Oct. 1, 2017, (c) Leeham Co.: Monarch Airlines ceased operations today (Oct. 2 in the UK) when its operating license was withdrawn and an Administrator appointed, the BBC reported.
Monarch Airlines Airbus A320. BBC photo via Google images.
The airline has 32 Boeing 737-8 MAXes on order. It operated a fleet of 34 Airbus A320s/A321s. Principal lessors are AerCap and Aviation Capital Group, according to the Airfinance Journal Fleet Tracker.
Given the current trade war between Boeing and Bombardier, there may be a sigh of relief in Montreal. Boeing beat out Bombardier in winning the MAX 8 order against the CS300 in 2014.
Posted on October 1, 2017 by Scott Hamilton
Sept. 30, 2017, © Leeham Co.: Today is the 49th anniversary of the roll-out of the Boeing 747-100.
On Nov. 7, United Airlines operates its last 747 flight. Delta Air Lines ends it 747 service this year. Afterward, there won’t be a single US operator of the passenger model.
The 747 remains in service with US cargo carriers Atlas Air, Kalitta Air, UPS and a few others. Globally, British Airways, Lufthansa and Korean Air Lines are among those flying the passenger model.
Ted Reed, one of the writers of TheStreet.com, asked me earlier this month to give some thoughts about the 747. Below is what I gave him; he excerpted some for his column in Forbes. The focus was on US operators.
Posted on September 30, 2017 by Scott Hamilton
Airbus, Airlines, American Airlines, Boeing, Delta Air Lines, Douglas Aircraft Co, Lockheed Martin, McDonnell Douglas, Pontifications, Pratt & Whitney, United Airlines
747-100, 777, A330, Airbus, airlines, American Airlines, Bill Allen, Boeing, British Airways, DC-10, Delta Air Lines, Douglas Aircraft Co., Douglas DC-6, Juan Trippe, L-1011, Lockheed Constellation, Lufthansa Airlines, McDonnell Douglas, MD-11, Northwest Airlines, Pan Am, United Airlines
Sept. 28, 2017, © Leeham Co., Grapevine (TX): American Airlines would like to decide within six months what it will do with its order for 22 Airbus A350-900s, a left-over deal from US Airways before the latter acquired the former.
Derek Kerr, EVP and CFO, told LNC on the sidelines of American’s investors/media day here in a Dallas suburb that the A350s were intended to replace US Airways’ A330s. The airline ordered 22 of the airplanes.
American, however, selected the Boeing 787-8/9 for its mid-size, long haul fleet, ordering 74 42. The new American deferred delivery of the A350s to 2020 and Kerr said a deadline is approaching to decide what to do with the order.
Posted on September 28, 2017 by Scott Hamilton