Bjorn’s Corner: USAF Tanker program

By Bjorn Fehrm

By Bjorn Fehrm25 September 2015, ©. Leeham Co: When Scott Hamilton asked me to give my view on his article “Pontifications: Duelling refuelling tankers” I accepted. I was not involved in the project and was only following it casually over the years.

I will also not give my view on what would have been the most suitable tanker for the US Air Force. I simply don’t have the relevant military competence for that, having never operated my fighters with aerial tanking nor been in an aerial tanker aircraft.

Where I have relevant competence is in writing military specifications for important aircraft procurements and the excerpts I have seen from the tanker RFQ on key specification points don’t impress. Let me explain.

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Muilenburg’s opportunity with Boeing unions

Dennis Muilenburg, president and CEO of The Boeing Co. Seattle Times photo via Google images.

Sept. 23, 2015, © Leeham Co. The plan to open a 737 Completion Center in China is an opportunity for Boeing Commercial Airplanes (BCA). It’s also an opportunity for Dennis Muilenburg, who was named chief executive officer of The Boeing Co. only last June.

Ray Conner, CEO of BCA, wrote employees in Washington State, where the 747 is assembled, that no jobs will be lost to the Completion Center.

Leadership and members of Boeing’s touch labor under, IAM 751, are understandably skeptical. As noted in yesterday’s post on this, 751 leadership expressed its concern even before Chinese President Xi landed at Paine Field in Everett, where Boeing’s wide-bodies are produced.

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Chinese 737 Completion Center makes tactical, strategic sense

Sept. 22, 2015, © Leeham Co. The expected announcement by Boeing and Chinese President Xi during

President Xi of China. Photo via Google images.

his state visit to Seattle this week that Boeing will develop a Completion Center for the 737 in China is a significant event that may one day lead to an assembly line there.

Boeing’s touch labor union, the IAM 751, was predictably critical. In a post on the 751 website last week, the union said, “In a previous meeting with Renton’s 737 leadership we saw a brief presentation outlining Boeing’s perceived market conditions regarding sales of single aisle aircraft and the company’s desire to collaborate with China. We have asked the Company for details of what is intended with “collaboration” and have not received ANY information on “collaboration” or confirming or disputing the media reports. While we don’t know specifics of any such proposal, ANY shift of aerospace jobs from our bargaining unit or Washington State causes grave concern.”

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Pontifications: Dueling refueling tankers

By Scott Hamiltn

By Scott Hamilton

Sept. 21, 2015, © Leeham Co.: This Friday, Sept. 25, is the date that at long last, Boeing and the US Air Force expect the first flight of the KC-46A that is equipped with the fueling system.

A “bare” KC-46A made its first flight last December. Then it spent the next six months or so on the ground. First flight of the second KC-46A, the one with the fueling system, has been delayed several times. All the program margin is gone and it’s going to be a challenge for Boeing to stay on schedule to deliver 18 combat-ready KC-46As to the USAF by 2017–two short years away. To try and stay on schedule, Boeing started production of the the airplane concurrent with the flight test aircraft, a risky proposition that could result in major rework or other difficulties if Murphy’s Law comes into play.

The KC-46A is the successor to the KC-767 International tanker program, which was an industrial disaster. Only eight airplanes were produced, four for Italy and four

Boeing KC-46A makes its first flight Sept. 25, 2015. Photo via Google images.

for Japan. It ran years late and hundreds of millions of dollars over budget. There were flutter and design issues. These problems became part of the risk assessment by the USAF in the KC-X competition evaluation between Boeing and Northrop Grumman/EADS–and one of the reasons why the Air Force selected the Northrop KC-330 offering (later named the KC-30).

Boeing successfully challenged the contract award and won the next round with what became known as the KC-46A. Boeing claimed it benefited from lessons learned from the KC-767 International program.

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Evaluating airliner performance, part 1.

By Bjorn Fehrm

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Introduction

Sep. 21 2015, ©. Leeham Co: Comparing and evaluating operational and economic performance of competing airliners is a complex task that requires analysis of thousands of parameters.

It’s not unknown for smaller airlines to have limited capability to undertake these difficult analyses. Accordingly, they often rely on the Original Equipment Manufacturers (OEMs) for their analysis on behalf of the potential customer.

Unfortunately, the OEM’s have little incentive to provide an unbiased view of either their products nor those of their competitors.

Thorough evaluations require quite some preparations. If these preparations are not carried out correctly, the result can be biased to the extent that the evaluation method dictates which’s the best aircraft and not the most suitability aircraft for the task. We will in a series of articles cover how aircraft evaluations are done and how evaluation pitfalls can be avoided.

Summary:

  • Aircraft evaluations are made for all direct operating costs that can be linked directly to the operation of the airliner.
  • The costs can be divided in Cash Operating Costs (COC), which covers the operation of the aircraft and capital costs. Combined these costs constitute the Direct Operating Costs, DOC.
  • The OEMs produce data for all COC cost items, but they do that in their own way. To make the costs comparable one need to know and understand their assumptions and neutralize these through independent modeling of the costs.
  • We describe what these assumptions are and how to neutralize them.

 

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Bjorn’s Corner: Engine efficiency

By Bjorn Fehrm18 September 2015, ©. Leeham Co: The debate around the market’s two single aisle combatants is quite heated, with fans of the one side saying “the limited space for a high bypass engine on the 737 MAX will cripple it forever” and the other side saying “the tighter design of the 737 will make it highly competitive against the A320neo, it is the A320 which has a weight and size problem”.

One of the arguments is that each inch of engine fan diameter brings 0.5% in increased propulsive efficiency. Therefore the A320 with up to 81 inches fans will win against the 737 MAX, which has a 69 inch fan. Having all the tools to check out if this is really the truth, I fed our airplane model with all the facts and looked at the result. It’s not so easy, guys…

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Airbus ‘confident’ engine makers can ramp up production

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Introduction

Sept. 17, 2015, © Leeham Co., Mobile (AL): Tom Enders, the chairman and CEO of Airbus Group, is “confident” engine makers can accommodate single-aisle airplane production ramp-ups being considered by Airbus and Boeing.

CFM makes about 50% of the engines on the A320 Family and has about 50% of the backlog for the New

Tom Enders, CEO of Airbus Group. Airbus photo.

Engine Option version. Pratt & Whitney has about the same market share for the NEO, depending on what month it is, with a large number of orders for which no engine has been selected.

Airbus and Boeing are each studying whether to ramp up production of the A320 and 737 families above the record rates already planned.

In an interview Sunday with Leeham News and Comment in advance of the A320 Final Assembly Line opening here, Enders said studies continue whether to take A320 production rates to 60 a month. Boeing is studying rates of 60-63 a month.

Summary

  • Decision whether to go to rate 60/mo should come by year end.
  • Suppliers, engine “partner” key to decision.
  • A380 sales “struggling,” but confidence remains.
  • More export sales for A400M program expected.

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A320 FAL “good for US aerospace,” says Airbus

 

Sept. 16, 2015, © Leeham Co., Mobile (AL): The opening of the Airbus A320 Final Assembly Line here achieves a major set of goals set by the company 10 years ago for its own strategic purposes, but officials are also mindful of the larger impact on US aerospace.

David L. Williams, VP Procurement, Airbus Americas. Photo via Google images.

Top executives point out that the Mobile plant reestablished a second commercial aviation assembly site in the US since the last MD-11s and MD-95s rolled out of the former McDonnell Douglas plant in Long Beach (CA) after its acquisition by The Boeing Co in 1997. Boeing continued production of the MD-11 until the end of 2000 (with deliveries occurring in 1Q2001). The last MD-95, renamed the Boeing 717, was produced in 2006. There were 200 MD-11s and 156 717s produced.

With nearly 10 years elapsing between that last 717 and the first A321ceo coming out of Mobile, Airbus officials say the creation of the FAL is not only good for Airbus and Alabama, it’s good for US aerospace.

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New single aisles on home stretch

By Bjorn Fehrm

16 Sep 2015, © Leeham Co.: Boeing released pictures yesterday of the first 737 MAX 8 being on the Renton Final Assembly Line (FAL) having completed the wing-to-body joins. With the Airbus A320neo now flying again with both Pratt & Whitney GTF and CFM LEAP test vehicles and Bombardier completing 85% on CSeries (having passed 2,400 hours of flight testing), one can say the new single aisles are on their home stretch.

737 MAX wing join with pylon

737 MAX on the Final Assembly Line at Renton, Seattle. Source: Boeing.

Original planning had the CSeries entering service in December 2013, nearly two years before A320neo (October 2015) and four years before the 737 MAX (4Q2017). With the 737 MAX now on the FAL one can start to review the Entry into Service (EIS) for all three. It will be tighter than the companies have said.

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Airbus Mobile FAL a victory for CEO Enders

Sept. 14, 2015, © Leeham Co., Mobile (AL): The opening of the Airbus Mobile (AL) A320 Final Assembly Line (FAL) is viewed by some close associates as a personal victory for Tom Enders, the chief executive officer of Airbus Group.

Enders began the quest of a US FAL 10 years ago, when EADS (then the name of Airbus’ parent, now Air Group) joined with Northrop Grumman to bid on the US Air Force Refueling Tanker, the KC-X. The Boeing Co. was the competition, and supplied tankers to the USAF since the end of World War II.

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