Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- Boeing wants to remarket China’s airplanes. It’s costly and time consuming. April 28, 2025
- Bjorn’s Corner: Air Transport’s route to 2050. Part 19. April 25, 2025
- How good is the C929? Part 2. April 24, 2025
- Boeing First Quarter Results Update: China is 10% of the backlog, with 500 in “Unidentified” April 24, 2025
- Boeing First Quarter Results: Tariffs, Return flights, $10.55bn asset sale April 23, 2025
Odds and Ends: Composites in future airplanes; Boeing and Hillary Clinton; 757 MAX; AA swaps A321neo orders; Delta RFP
Composites in future airplanes: Composites World has a post about the use of composites in the future, with a good graphic detailing the increasing use of this material in airliners.
Boeing and Hillary Clinton: The Washington Post has a long story about the relationship between Boeing and Hillary Clinton, while she was US Secretary of State. While the story raises some interesting issues with respect to the prospective presidential candidate in 2016, the points focusing on her advocating for Boeing aircraft purchases doesn’t bother us a bit: that’s what politicians do on behalf of Airbus. As far as we’re concerned, our government should be supporting our industries, too.
757 MAX: The Motley Fool raises the prospect of a Boeing “757 MAX,” which is a restart of the 757 line but with a composite wing and new engines–something along the lines of the 777X in concept. We’ve been hearing rumblings about this, too.
American swaps A321neo orders: American Airlines swapped 30 A321neo firm orders into options, leaving 100 firm orders for this sub-type left. The deliveries were for 2021/22. American told us it retained this flexibility in the original contract and the new management elected to do so in order “to maintain flexibility.”
Delta’s RFP: Airchive has a good analysis of the Delta Air Lines Request for Proposals to replace its wide-body fleet. We were especially interested in the cost analysis of the 787 vs the A330, which is close to our own numbers (there was no collaboration between Airchive and Leeham).
Boeing slammed for moving jobs to Southern California, WA state for naivete
Boeing took two hits over the weekend from Seattle Times columnists for the announcement that 1,000 engineering jobs will move from the Puget Sound area to Southern California.
Columnist Danny Westneat interviewed a “lonely, ignored voice” who predicted Boeing would go ahead and move jobs despite the $8.7bn tax breaks proposed by Gov. Jay Inslee that were then before the Legislature in hearings prior to approval. (SPEEA Executive Director Ray Goforth also warned of the loopholes in the proposed legislation, but he was ignored, too.) Washington State was criticized for being snookered on jobs once again.
Satirist Ron Judd also took Boeing to task in his Sunday column.
We got our knuckles rapped by a state official because we opined our coverage that the “state” tends to sit back and relax after wins.The state official wrote:
The diminishing market for main deck freighters
At the IATA Cargo symposium last month Fred Smith laid it on the line – there is currently over-capacity in the market, the Industry is undergoing what he described as a profound transformation and he warned that the good old days will not return.
This message was supported by IATA that warned its members that the air freight portion of the pie is continuing to shrink and air freight is losing market share to other modes of transport. There needs to be significant improvements in execution and delivery of the air freight offer – transaction costs are too high and little improved since the 1950’s in terms of a door-to-door transaction.
What is the impact for the freighter business – new builds and conversions? Old fuel inefficient platforms are out and what Fred Smith described as ‘low cost belly space’ is in. Airline cargo managers are moving out of main deck freighters (IAG, JAL, United, American, Delta to name a few) and befriending their passenger colleagues for space below the main deck to accommodate their cargo which they can sell at rates and profit margins not dreamed of before.
Boeing to move engineering jobs to California
Boeing will move 1,000 engineering jobs from Washington State to California, The Seattle Times reported today. Predictably, the engineers union, SPEEA, is having fits about this.
Washington State probably won’t be too happy, either, especially after giving Boeing nearly $9bn in tax breaks to build the 777X here.
We’re going to set aside the debate with the union and Boeing and the Washington impact and try to take a larger view.
Odds and End: ExIm fight, again; A350 interior; C-17 production ending early; 787’s longest routes; That’s no bull; MH370
ExIm fight, again: Republicans and the conservative Heritage Foundation are once again attempting to kill the US ExIm Bank, which providing financing support for Boeing airplanes.
This isn’t a sexy topic for our readers, but it’s an important issue we’ve written about many times. While the Republicans and Heritage call this corporate welfare (of which we’re generally disdainful), we disagree in this instance. It’s a matter of competitiveness.
Loren Thompson, with whom we’ve often disagreed, and whose institute is partly funded by Boeing, takes on the effort to kill ExIm in this column. His underlying facts are valid, though his tiresome shot at Airbus subsidies and Boeing’s innocence is laughable once more. The WTO found Boeing received illegal subsidies, too, and of course we just witnessed Boeing getting the largest subsidy in corporate history from Washington (State, that is)–all of which Thompson ignores.
But this National Review magazine (a conservative one) fails in its taking Thompson to task to even mention Airbus, the principal thrust of Thompson’s piece. This is as silly as Thompson’s continued Airbus bashing.
The reason we support ExIm’s continued existence has nothing to do with who gets what subsidies; it has everything to do with the fact that Europe’s export credit agencies fund Airbus airplanes and Boeing needs to have ExIm to compete. (We’d be less harsh about Thompson if he would stick to this topic rather than beating the subsidy drum with highly selective facts on an issue for which he was paid by Boeing to issue a study during the WTO dispute.)
National Review’s critique of Thompson totally ignores the Airbus export credit support challenge. There may be merit to many practices about ExIm to criticize, but these critics need to focus on the ECA competitive advantage for Airbus should ExIm go away. Boeing’s right on this one.
More A350-800 orders vanish
Twelve more Airbus A350-800 orders vanished as Aircraft Purchase Fleet canceled, according to the latest tally from Airbus. APF is the special purpose company set up for Alitalia Airlines, which is a financial basket case and probably couldn’t finance a Piper Cub, let alone an A350. In this case, the -800s were not upgraded to -900s or -1000s, according to the monthly Airbus Orders and Deliveries tally. There are now just 34 A358s in backlog.
The shrinking backlog further suggests the need for a refresh of the A330 with a re-engine, in our view. Without the A350-800, Airbus won’t have a competitor in the 250 seat sector that has any current technology. An A330neo with new engines would at least fill some of this void.
Meantime, Delta Air Lines issued a Request for Proposals for 50 wide-body aircraft to replace its aging Boeing 747-400s and some 767-300ERs. Delta’s CEO has said he could be interested in the A330neo. Delta eschews new technology, preferring “proven” technology, which could work against the Boeing 777X powered by an entirely new engine. By the time Delta would be ready to take delivery of its order, the A350XWB and its new technology will have been in service for many years. Delta has a deferred order for the Boeing 787-8 it inherited from Northwest Airlines, and this technology will be mature by the time Delta would be able to take delivery, so the 787 family could be in the mix. So could an A330neo, which would most likely be powered by one of the 787’s engine options, the GEnx or the Rolls-Royce Trent 1000 TEN. Market intelligence tells us Delta is pushing the GEnx, given its strong relationship with GE.
Putting the MH370 search in perspective–literally
The search area for Malaysian Airlines Flight MH370 now encompasses an area the size of Oregon. So we pulled it up on Google Earth and marked the Portland International Airport. You can’t see the airport let alone a Boeing 777. This illustrates the task at hand.
Then we zoomed in on PDX Airport, though we don’t know what “altitude” this represents; we’re not smart enough to take a measurement of the airplanes (a known size) and extrapolate to compute the altitude–we’re sure some of our readers are.
Read the Comment from Andrew about the altitude (and our response).
Odds and Ends: No butts about it; 737 Norway to Houston; MH370
No butts about it: Flight Global has this story (free registration required) about the Airbus campaign for an international seat width standard. But while Airbus is touting comfort, it’s now promoting five abreast in the center section of its A380 economy section, reducing the 18.5 inch seating to 18 inches. The London Telegraph has this story on seat width and other stuff related to the increasingly crowded cabins.
737 Norway to Houston: No, this isn’t a type. The USA Today explains.
Tossing a lawsuit: An Illinois judge tossed the first lawsuit filed in connection with Malaysian Airlines Fight MH370 and threatened sanctions on the law firm that filed it.
And this has become indicative of CNN’s breathless, sometimes ridiculous coverage of MH370:
While Greg Feith thinks a probable cause of MH370’s disappearance may not be solved, another former NTSB member has a different opinion. John Goglia, however, was a board member, not an investigator, although he was a US Airways accident investigator.
MH370 wreckage, probable cause may never be found, says ex-NTSB investigator
During the three weeks since Malaysian Airlines Flight MH370 disappeared, “talking heads” (including our own) have become a staple on the news and cable 
Source: Aviation Week
shows. The trouble with talking heads is that short sound bites don’t really allow us to take a deep dive into the issues.
We arranged to have an extended interview with Greg Feith, a former investigator for the National Transportation Safety Board and today a consultant for private industry and another of the talking heads. Feith investigated two accidents that may have particular relevance to MH370: the pilot-suicide crashes of Egyptair 990 and a Silk Air 737 in Indonesia. He’s familiar with the national cultures involved and events leading to conclusions of these two previous incidents. Feith early in the MH370 events concluded this incident has its roots in the cockpit of the Boeing 777.
He’s appeared throughout the MH370 search on CNN and NBC, among other places. Here is our interview with Feith.
A former lead crash investigator for the US National Transportation Safety Board (NTSB) doesn’t believe the wreckage of Malaysian Airlines Flight MH370 will ever be found—and with it, the data recorded on the black boxes will be lost to the investigation.
“I hope I am wrong but I personally don’t believe we will ever find the wreckage. I think we will find pieces that drifted,” Greg Feith, the investigator, said in an exclusive interview with Leeham News and Comment.