Part 2
Paulo Cesar, president and CEO of Embraer’s commercial aviation unit. Photo via Google images.
Sept. 10, 2015, © Leeham Co. Embraer is the dominant producer of commercial aircraft in the 70-125 seat sector, having overtaken Bombardier in the last decade following the development and 2004 introduction of the E-Jet. Bombardier’s CRJ family struggles, hampered by a sales force that neglected it and the Q400 turbo-prop as attention focused on the new CSeries.
Embraer in recent years faced new competition. However, the early entries—AVIC’s ARJ21 and the Sukhoi Superjet SJ100, both in the 70-90 seat sector, proved little to worry about. The ARJ21, now eight years late, proved to be a technological and industrial dud, a project that was more about learning how to design and build an airplane than producing a commercially viable one.
The SSJ100, while winning favorable reviews, was and continues to be plagued by a poor production system and in recent years the political overhang of Russia’s annexation of Crimea and its war in Ukraine.
Shortly, though, the E-190 faces a new challenger: the Mitsubishi MRJ90. It’s two years late, now forecasting an entry-into-service of 2017—just one year ahead of the redesigned E-190, the E-190 E2. The MRJ90, a 90-seat clean-sheet design, is Japan’s first commercial airliner since the NAMC YS-11 turbo-prop of the 1960s. The MRJ90’s first flight is scheduled for the second half of next month. Full flight testing moves to Washington State in the first quarter next year.
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Airbus ‘confident’ engine makers can ramp up production
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Introduction
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
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Posted on September 17, 2015 by Scott Hamilton
Airbus, Boeing, CFM, Leeham News and Comment, Pratt & Whitney, Premium
737 MAX, A320NEO, A380, A400M, air force tanker, Airbus, Airbus Group, Boeing, CFM, Fabrice Bregier, John Leahy, KC-46A, KC-X, Pratt & Whitney, SkyMark, Tom Enders, Transaero, USAF, Virgin Atlantic Airways
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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11 Comments
Posted on September 16, 2015 by Scott Hamilton
Airbus, Boeing, CFM, McDonnell Douglas, Pacific Northwest Aerospace Alliance, Pratt & Whitney
717, A320 final assembly line, A321ceo, Airbus, Airbus Mobile, Boeing, CFM, David L. Williams, McDonnell Douglas, MD-11, MD-95, Pacific Northwest Aerospace Alliance, PNAA, Pratt & Whitney
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 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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25 Comments
Posted on September 16, 2015 by Bjorn Fehrm
Airbus, Bjorn's Corner, Boeing, Bombardier, CFM, CSeries, Pratt & Whitney
737 MAX, A320NEO, Airbus, Boeing, Bombardier, CFM, CSeries, Pratt & Whitney
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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40 Comments
Posted on September 14, 2015 by Scott Hamilton
air force tanker, Airbus, Boeing
A320, A320 final assembly plant, air force tanker, Airbus, Airbus Mobile, Boeing, KC-330. KC-767, KC-X, Tom Enders
Pontifications: Boeing view of market conditions today
By Scott Hamilton
Sept. 14, 2015, © Leeham Co.: Randy Tinseth, Boeing’s VP Marketing, spoke with Bernstein Research last week on a variety of topics. In a note issued after the conversation, analyst Douglas Harned reported:
Randy Tinseth. Photo: Boeing.
demand in the early 2020s.”
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43 Comments
Posted on September 14, 2015 by Scott Hamilton
Airbus, Airlines, Boeing, Pontifications
737-800, 737-900ER, 737MAX, 737NG, 747-8F, 767-300ER, 777, 777F, 777X, A320, A321, Airbus, American Airlines, Bernstein Research, Boeing, Continental Airlines, Dallas Morning News, Douglas Harned, Gorden Bethune, Herb Kelleher, Randy Tinseth, Robert Crandall, Southwest Airlines, Terry Maxon
Bjorn’s Corner: Production costs.
By Bjorn Fehrm
11 September 2015, © Leeham Co: In connection with our articles, there a numerous reader discussions around the development and production costs of new aircraft families. It’s not easy to understand how these costs arise, how they are booked in the OEM’s accounting and how they can be compared. Time for a primer.
I will not duplicate a course in company accounting, but it can be worth the read to understand how costs are created, accounted for and what we as externals can observe via aircraft industry economic reports .
I will focus on Airbus and Boeing. These are good examples of the different ways of collecting and showing costs in the global aircraft industry.
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24 Comments
Posted on September 11, 2015 by Bjorn Fehrm
Airbus, Bjorn's Corner, Boeing
787, A350, Airbus, Boeing
Embraer faces new challenge from MRJ90
Part 2
Paulo Cesar, president and CEO of Embraer’s commercial aviation unit. Photo via Google images.
Sept. 10, 2015, © Leeham Co. Embraer is the dominant producer of commercial aircraft in the 70-125 seat sector, having overtaken Bombardier in the last decade following the development and 2004 introduction of the E-Jet. Bombardier’s CRJ family struggles, hampered by a sales force that neglected it and the Q400 turbo-prop as attention focused on the new CSeries.
Embraer in recent years faced new competition. However, the early entries—AVIC’s ARJ21 and the Sukhoi Superjet SJ100, both in the 70-90 seat sector, proved little to worry about. The ARJ21, now eight years late, proved to be a technological and industrial dud, a project that was more about learning how to design and build an airplane than producing a commercially viable one.
The SSJ100, while winning favorable reviews, was and continues to be plagued by a poor production system and in recent years the political overhang of Russia’s annexation of Crimea and its war in Ukraine.
Shortly, though, the E-190 faces a new challenger: the Mitsubishi MRJ90. It’s two years late, now forecasting an entry-into-service of 2017—just one year ahead of the redesigned E-190, the E-190 E2. The MRJ90, a 90-seat clean-sheet design, is Japan’s first commercial airliner since the NAMC YS-11 turbo-prop of the 1960s. The MRJ90’s first flight is scheduled for the second half of next month. Full flight testing moves to Washington State in the first quarter next year.
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2 Comments
Posted on September 10, 2015 by Scott Hamilton
Airbus, Airlines, Boeing, Bombardier, CSeries, Embraer, Lockheed Martin, McDonnell Douglas, Mitsubishi
767, A320, A400M, Airbus, Boeing 737, Bombardier, C-130, CRJ, E-175, E-175-E2, E-190, E-190 E2, E-195, E-Jet, Embraer, International Aero Engines, KC-390, Lockheed Martin, McDonnell Douglas, MD-90, Mitsubishi, MRJ90, Paulo Cesar, Q400, SkyWest Airlines, Trans States Airlines, V2500
Embraer CEO sees opportunity for 100-seaters in USA
Part 1
Sept. 9, 2015, © Leeham Co.: The chief executive officer of Embraer’s commercial aircraft unit believes a trend might be emerging for US major airlines to directly operate 100- and plus-100 seat aircraft (and below the 125-seat sector), opening new opportunities currently precluding the largest E-Jets, and by implication, competing jets.
Paulo Cesar, president and chief executive officer of Embraer’s commercial airplane unit. Photo via Google images.
US major airlines have generally migrated away from the 100-125 seat aircraft, up-gauging to the 150-162 seat Airbus A320s and Boeing 737-800s and their re-engined successor. The “baby” Airbus and Boeing aircraft, the A319ceo/neo and 737-700/7, haven’t sold well in recent years.
But the Embraer E-195 E2, at 122 seats in a comfortable single-class configuration and somewhat smaller in two class, hasn’t yet penetrated the US market. Neither has the Bombardier CS100, a 100-110 seat aircraft in two- or single-class configuration.
Delta Air Lines is bucking history with acquisition of 88 inexpensive Boeing 717s from the used airplane market. Southwest Airlines and United Airlines are acquiring used 737-700s and United agreed to lease in 25 used A319s.
Cheap fuel and cheap capital costs help these decisions. But Paulo Cesar, president and CEO of Embraer’s commercial unit, sees an opportunity for his airplane.
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3 Comments
Posted on September 9, 2015 by Scott Hamilton
Airbus, Boeing, Bombardier, CSeries, Embraer
737-7, 737-700, 737-8, 737-800, A319ceo, A319neo, A320, Airbus, Boeing, Bombardier, CS100, E-175 E1, E-175-E2, E-195 E2, E-Jet, Embraer, Paulo Cesar
Boeing’s 767 revitalized as a MOM stop gap, Part 3
By Bjorn Fehrm
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Introduction
Aug. 31 2015, ©. Leeham Co: After examining the characteristics of the Boeing 767 to serve the market segment that Boeing is studying for its Middle of the Market (MOM) requirement, the 225 passenger/5000nm sector, we will now finish the series by looking at how the 767 can be made economically more competitive.
We will study the influence of improved aerodynamics like Aviation Partners Boeing’s Split Scimitar Winglet for the 767. We will also look at what engine PIPs can provide and also look at what a re-engine could bring.
Finally we examine at what happens when we add crew costs, underway/landing fees and maintenance costs to form Cash Operating Costs (COC) followed by capital costs to form Direct Operating Costs (DOC).
Summary:
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Posted on September 9, 2015 by Bjorn Fehrm
air force tanker, Airbus, Aviation Partners Boeing, Boeing, Boeing KC-X tanker, GE Aviation, Middle of the Market, MOM, Premium
757, 757-200W MAX, 767-200ER, 767-300ER, 787-8, Airbus, Boeing, MOM
Bombardier snares Lufthansa’s Nico Buchholz
Bombardier scored a major executive coup with the appointment of Nico Buchholz as Chief of Procurement for the entire company.
Nico Buchholz, the new Head of Procurement for Bombardier. Photo via Google images.
Buchholz was Executive VP Group Fleet Management for Lufthansa Airlines and Group, with various fleet management titles, since 2001. He previously was an executive at Airbus.
Buchholz was the launch customer for the CSeries, placing an order in 2009 for 30+30 CS100s and CS300s. Lufthansa Group’s Swiss International Airlines subsidiary will become the first operator when the deliveries begin next year. While the Middle Eastern airlines get the headlines for being launch customers for the Boeing 777X, in fact it was Buchholz who bought the airplane for Lufthansa, which is the first 777-9 customer.
Buchholz is a major “get” for Bombardier.
Here is the press release.
26 Comments
Posted on September 8, 2015 by Scott Hamilton
Airlines, Boeing, Bombardier, CSeries
777X, Boeing, Bombardier, CS100, CS300, CSeries, Lufthansa Airlines, Nico Buchholz, Swiss International Airlines
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