Delta Tech Ops 5-year goal to double revenues

#MROAM

Ed Bastian, Delta Air Lines CEO.

April 9, 2019, © Leeham News: Delta Air Lines has the third largest third-party MRO company in North America and aggressively seeks to grow, in sharp contrast to its competitors.

While American and United airlines have limited their own maintenance, repair and overhaul, let alone seek third party business, Delta Tech Ops is a business unit and profit center. Delta CEO Ed Bastian said today that Tech Ops will achieve $1bn in revenues this year and has a goal of $2bn within five years.

Bastian was the lead-off speaker at the Aviation Week MRO Americas conference in Atlanta this week.

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Green aircraft builder may need infusion of greenbacks

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By Bryan Corliss

April 4, 2019, © Leeham News: While one Western Washington electric aircraft company is charging forward with battery-powered flight, another may be encountering headwinds.

Zunum, which has announced plans to put a hybrid-electric-powered aircraft into the air before the year’s end, may need a cash infusion if it’s to stick to that time line.

Unlike MagniX – which announced March 26 a deal with Vancouver’s Harbour Air to start putting electric motors into the airline’s existing fleet of seaplanes – Bothell-based Zunum is pursuing a clean-sheet aircraft design.

Summary
  • Electric plane builder Zunum plans to fly hybrid test aircraft this year.
  • The company says it plans to announce a manufacturing site — or maybe an airframing partner — in 2020.
  • Reports say the company needs more investor cash to avoid schedule slips.
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Pontifications: Boeing NewCo exec, Slattery, faces challenges

By Scott Hamilton

  • Our Monday paywall will appear at 6am Tuesday, PDT.

March 25, 2019, © Leeham News: Boeing last week announced the executive leadership for the joint venture with Embraer, the as-yet unnamed company that is generically called NewCo.

Separately, Embraer announced the departure at the end of next month of Embraer’s parent CEO, Paulo Cesar, a move that was expected.

Cesar was with Embraer for 22 years in various positions. We was president and CEO of EMB’s Commercial Aviation division and launched the E2 program in 2013.

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Cutting A220 costs is an ‘ongoing exercise’ for Airbus

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Introduction

March 14, 2019, © Leeham News: Airbus’ effort to slash supply costs for A220 production is “an ongoing exercise at this point,” Joe Marcheschi, Airbus’ head of procurement in North America, told LNA in an interview last month.

The A220-300 for JetBlue will be assembled at the Airbus plant in Mobile (AL). Airbus rendering.

“There are no specific, let’s say, achievements yet,” he said. “We are working closely with our supply chain.”

It takes time to squeeze cost out of the supply chain, he said. “We only took over July 1. That’s when we got full knowledge of the existing contracts.”

In January, Philippe Balducchi, head of the Airbus-led venture overseeing production, told journalists that the aerospace giant aims to realize “significant double-digit” percentage cost reduction. He indicated that most of the savings likely would come from the supply chain, according to news reports.

“Look, the airplane is absolutely fantastic—it just costs a lot of money,” Marcheschi said. “Now, we have to find a way to reduce the cost.”

Summary
  • Airbus is working to slash supply chain costs on A220 program, but no announcements yet.
  • The European plane maker wants to offer commercial MRO services in North America.

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Pontifications: Delays, design creep, cost overruns–nope, it’s not an airplane program

By Scott Hamilton

March 11, 2019, © Leeham News: It’s late. There have been creeping delays. There’s been design creep. There were unknown unknowns. It’s way over budget.

No, it’s not a new airplane program, though the parallels are quite apparent.

It’s our new house.

After a three year process, including changing builders, going through the city twice, hitting expensive unknowns and facing rising costs, today is finally, finally, moving day.

It’s been a horrible experience I wouldn’t wish on anyone.

This will sound familiar to Airbus, Boeing, Bombardier, Mitsubishi, Rolls-Royce, Pratt & Whitney and, to a lesser extent, GE and CFM. Only Embraer can say it finished on time and on budget.

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Pontifications: Which airplanes are revolutionary or evolutionary?

By Scott Hamilton

Feb. 18, 2019, © Leeham News: Last week’s column about the revolutionary Boeing 747 prompted some Twitter interaction asking what other commercial airplanes might be considered “revolutionary.”

I have my views. Let’s ask readers.

There are also three polls below the jump in addition to the usual comment section. Polling is open for one week.

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With CSeries, Airbus commands 78% of 100-150 seat sector

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Introduction

Feb. 11, 2019, © Leeham News: Airbus acquired 50.01% of the Bombardier CSeries program last year.

Boeing and Embraer Commercial Aviation received Brazilian government approval last month and now await a nearly-year long regulatory approval process from around the globe.

Based on the announced orders at Jan. 1, Airbus has a 78% share of the 100-150 seat sector following the combinations.

Embraer sold more airplanes in this sector than Boeing: 95 E195-E2s to 70 737-7s.

The former CSeries has 526 orders to 55 for the A319neo.

Summary
  • 14% of the A220 orders are classified as “Red” in LNA’s judgment—orders that either should be removed from the backlog or, in one case, is highly questionable due to customer statements.
  • Another 11% of the A220 orders are classified as “Yellow,” primarily due to region risk.
  • Synergies between A220 and A320 are greater than E2 and 737.

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Bombardier, United launch CRJ550

Feb. 6, 2019, © Leeham News: Bombardier’s new approach to replacing aging 50-seat CRJ200s and address persistent complaints about carry-on baggage issues for the CRJ family follows an example set last year by Embraer.

Bombardier’s CRJ550 is a reconfigured version of the CRJ700, with reduced seating, on-board carry-on baggage storage areas and extra legroom.

Initially, these will be reconfigured CRJ700s. Bombardier will offer new-build CRJ700s.

Embarer last year created the 70-seat E175 SC (special cabin), reducing seating from the 76-seat E175 to a 70-seat E170-sized airplane. Embraer no longer offers the E170. More legroom and greater opportunities for premium class seating come with the SC configuration.

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Pontificatons: From the sidelines at the AFJ Dublin conference

 

By Scott Hamilton

Jan. 28, 2019, © Leeham News: Launch by Boeing of the New Midmarket Aircraft (NMA) is pretty much a given, despite a still undecided business case, say people on the sidelines of the Airfinance Journal’s Dublin 2019 conference.

Here is a potpourri of information picked up at the conference, which is attended by about 2,000 people.

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Look at entire portfolio when investing in sub-types, Airbus and Boeing say

Jan. 23, 2019, © Leeham News, Dublin: Investors and lessors should take into account the entire product line offered by Airbus and Boeing when considering sub-types that may have few sales to date, officials of the two companies said at the annual conference in Dublin organized by Airfinance Journal.

Tim Myers, president of Boeing Capital Corp., and Mark Pearman-Wright, Head of Leasing & Investor Marketing for Airbus, said the 737-7, 737-9, 737-10, A319neo, A321LR, A330-800 and the new 777X should be looked at in context of the entire 737, A320, A330 and 777 lines when making investment decisions.

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