Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- FAA’s data of accident, incidents, often not shared May 19, 2025
- Bjorn’s Corner: Air Transport’s route to 2050. Part 22. May 16, 2025
- Services are driving revenues and profits in difficult times, Part I May 15, 2025
- The BWB has a long way to go before flying passengers, freight May 12, 2025
- Bjorn’s Corner: Air Transport’s route to 2050. Part 21. May 9, 2025
Final flight for first Boeing 727
The first Boeing 727-100, sold to United Airlines (N7001U) made its first flight in 25 years March 2, 2016, from Paine Field in Everett (WA) to Boeing Field in Seattle. The 12 minute flight was also the airplane’s last. The aircraft, which flew for United for 27 years and carried three million passengers, will be permanently displayed at the Museum of Flight. This is painted in the original delivery colors for United. Note that then there were no outlines of the doors and emergency exits; this FAA requirement came years later.
ISTAT Day 2: MOM business case remains a challenge
March 1, 2016, (c) Leeham Co.: The manufacturers and their customers remain unclear
about the need and design of the so-called Middle of the Market aircraft, their representatives said at the ISTAT AGM today in Phoenix. The business case has yet to be proved.
Participants in the Middle of the Market Panel are:
Ron Baur, VP Fleet, United Airlines
Robert Lange, SVP Market and Product Strategy, Airbus
Randy Tinseth, VP-Marketing, Boeing
Bert van Leeuwen, Managing Director, DVB Bank
- We’re at the 2016 ISTAT AGM in Phoenix and will be reporting on presentations and news from the sidelines.
Van Leeuwen, the banker, said financiers would need to see at least 1,000 MOMs in the market with a broad customer base to feel comfortable financing the airplanes.
Embraer weighs in against Honeywell-UTC merger
Fred Curado, CEO of Embraer
March 1, 2016, © Leeham Co. Embraer joined Airbus and Boeing in opposing the potential acquisition by Honeywell of United Technologies Corp.
- We’re at the 2016 ISTAT AGM in Phoenix and will be reporting on presentations and news from the sidelines.
- Update, 0800 MST: Honeywell withdrew its $90bn bid for United Technologies, it was announced this morning.
UTC rejected the merger—which came to light last week—but it is unclear if Honeywell will continue to pursue the idea.
ISTAT Day 1: Engine updates for CFM, GE, RR and PW
Feb. 29, 2016, (c) Leeham Co.: The LEAP engine, for the Boeing 737 MAX, Airbus A320neo and COMAC C919 is the fastest-selling engine in history, says Jean-Paul Ebanga, the president of CFM International. More than 10,000 have been sold.
- We’re at the 2016 ISTAT AGM in Phoenix and will be reporting today and tomorrow on presentations and news from the sidelines.
“It’s on-time and on-spec,” Ebanga said. It’s either been on the date set four years ago or ahead of schedule. The engines delivered to Airbus for the A320neo are on spec, he said. It’s been certified for the neo and will be certified soon for the MAX, with 90% of the information submitted.
ISTAT Day 1: Leahy’s biggest fear: producing enough planes to meet demand
Feb. 29, 2016, (c) Leeham Co: Aircraft lessors financed 48% of the Airbus deliveries in 2015, with direct sales and sale-leasebacks, says John Leahy, chief operating officer customers for Airbus.
- We’re at the 2016 ISTAT AGM in Phoenix and will be reporting today and tomorrow on presentations and news from the sidelines.
“Lessors are a key and integral part of our strategy,” Leahy said. Airbus only financed 2% of its own products last year. Export Credit Agencies financed only half the numbers of Boeing, he said.
Leahy does not see a downturn any time soon.
ISTAT Day 1: Boeing developmental airplanes progressing
Feb. 29, 2016 (c) Leeham Co.: The Boeing 737 MAX rolled out on time, the 787-10 is in production and the 777-9 is in firm configuration, says Randy Tinseth, VP-Marketing for Boeing Commercial Airplanes.
- We’re at the 2016 ISTAT AGM in Phoenix and will be reporting today and tomorrow on presentations and news from the sidelines.
Boeing is watching oil prices, the global economy, geopolitical hot-spots, cargo demand and several other factors for the near-and long-term.
ISTAT Day 1: Used 777 values depend on engines, leases
Feb. 29, 2016 (c) Leeham Co.: The Boeing 777-200ER is not worth $7.7m or even $10m, but $37m to $47m, according to four appraisers who appeared today at the ISTAT AGM.
- We’re at the 2016 ISTAT AGM in Phoenix and will be reporting today and tomorrow on presentations and news from the sidelines.
Doug Kelly of the consulting/appraisal firm Avitas notes that the Rolls-Royce Trent-powered 777s are, indeed, the least desirable airplanes. GE or PW-powered airplanes commands a $7m premium, he said.
AerCap is selling 777-200ERs with leases attached for more than $50m, Kelly said.
Pontifications: Boeing sued over program accounting
By Scott Hamilton
Feb. 29, 2016, (c) Leeham Co.: It was inevitable: a class action lawsuit was filed last week against The Boeing Co., its top officers and directors over the investigation by the US Securities and Exchange Commission of the company’s program accounting.
The lawsuit was filed last Wednesday.
The lawsuit alleges “among other things, that defendants issued materially false and misleading statements and/or failed to disclose that: (i) Boeing’s use of program accounting for its 787 Dreamliner and/or 747 jumbo aircrafts relied on inflated sales forecasts; (ii) Boeing’s use of program accounting for its 787 Dreamliner and/or 747 jumbo aircrafts relied on understated estimates of production costs; and (iii) as a result of the foregoing, Boeing’s public statements were materially false and misleading….”
Bjorn’s Corner: Flight tests
By Bjorn Fehrm
19 February 2016, ©. Leeham Co: Last week I described how Mitsubishi Aircraft Corporation (MAC) issued a press release on Christmas day communicating MAC would be doing structural reinforcements on their test airframes before continuing flight testing. MAC was perhaps overzealous when informing the world that they would do minor reinforcements to two ribs and a few stub spars in order to pass Ultimate strength tests for the aircraft.
I rightfully thought this is the Japanese culture at play; there must not be a big problem behind it.
There was one more area of that press release that intrigued me. Here what it said: “The first flight and the subsequent flight tests have confirmed the basic characteristics to be satisfactory. However, we also have recognized several issues as we attempt to accelerate our development.”
Time to decrypt this as well and compare to what has become standard industry practice.