Boeing, Embraer tie-up key to NMA development

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Introduction

July 9, 2018, © Leeham News: When Boeing and Embraer announced last week the Memorandum of Understanding to form a joint venture between Boeing and Embraer Commercial Airplanes, writers and analysts jumped on the bandwagon that LNC pointed out as far back as last year.

Summary

This is:

  • A strategic play;
  • About Embraer’s engineers and low-cost production in Brazil;
  • About tapping Embraer’s resources for development of the potential Boeing New Midmarket Aircraft; and
  • About EMB’s potential lead in developing a new single-aisle aircraft to replace the 737, among other things.

Additionally, a Boeing partisan sees new trade complaint against C Series.

Related stories:

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Boeing, Embraer to create commercial company, intent for defense JV

July 5, 2018: Boeing and Embraer announced an agreement to create a new company with EMB’s commercial aircraft unit and intent to create a second JV for its defense unit.

The full press release is below the jump.

Related stories:

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Delays over for MRJ program, execs insist

By Dan Catchpole

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July 3, 2018, © Leeham News:   Mitsubishi Aircraft Corp. executives insist the MRJ90 is past the seemingly endless delays that have dogged its development. It is on track toward type certification and first delivery in mid-2020.

MRJ90 flight test vehicles at Mitsubishi’s Moses Lake (WA) flight testing facility. Source: Mitsubishi.

The problem is when it arrives, the 81-seat MRJ90 will be the wrong fit for the US market. Program executives praised the plane’s advanced design during media briefings at the MRJ flight test center in Moses Lake (WA), but when they spoke about market opportunity, it was for the smaller MRJ70, which is at least three years away from entering service.

Starting in 2022, Mitsubishi expects a wave of 50-seat regional jet retirements in the North American market. And North America—specifically the United States—”is the most important market for us to make this business successful,” said Yugo Fukuhara, Mitsubishi Aircraft vice president and general manager of sales and marketing.

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Pontifications: C Series to Airbus, 10 years since program launch, lower fuel burn

By Scott Hamilton

July 2, 2018, © Leeham News: Airbus officially became the majority partner yesterday of the C Series Aircraft Limited Partnership, or CSALP.

Airbus has a 50.01% stake in the LP, with Bombardier and the province of Quebec holding minority stakes.

Things will move quickly, now that Airbus has control.

Airbus is expected to announce a rebranding of the C Series at its July 10 pre-Farnborough Air Show media briefing. An aircraft is in the process of being repainted in Airbus colors for display at the event.

Bloomberg reported in April new names were to be assigned to the CS100 and CS300, probably the A210 and A230 respectively.

Construction of the new C Series Final Assembly Line in Mobile (AL) will begin sooner than expected. This was announced at the Inaugural Southeast Aerospace & Defence Conference in Mobile, organized by Leeham Co. and Airfinance Journal.

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Farnborough Air Show: No NMA, unlikely A321 Plus, no Boeing-EMB tie up

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Introduction

June 25, 2018, © Leeham News: Little in the way of excitement is expected at the Farnborough Air Show next month.

There won’t be any launch of the oft-talked about Boeing New Midmarket Aircraft (NMA, aka 797).

Airbus continues to be coy about its response to the NMA. Studies about an A321neo Plus or Plus-Plus have been talked about almost as long as Boeing has been discussing the NMA. More recently, now there’s talk of an A321 XLR.

Summary

  • Expectations for incremental airplane orders at the show should be low.
  • No NMA program launch.
  • Doubtful if Airbus launches A321neo enhancements.
  • Airbus-C Series makes its debut—but to what end?
  • Mitsubishi to showcase MRJ.
  • Bombardier renews emphasis on Q400, CRJ.
  • Embraer looks for order boost.

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Pontifications: Growing aerospace in the US Southeast

By Scott Hamilton

June 24, 2018, © Leeham News: We’re a week away from the partnership between Airbus and the Bombardier C Series program becoming effective.

Beginning tomorrow, Leeham Co. and Airfinance Journal hold the Inaugural Southeast Aerospace & Defence Conference in Mobile (AL), where Bombardier will be a C Series Final Assembly Line.

The US Southeast will also be a competitor for the site selection of the FAL for the New Midmarket Aircraft (NMA) should Boeing decide, probably next year, to proceed with this new airplane.

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US start-up has a lot of Moxy

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Introduction

June 21, 2018, © Leeham News: A new US airline secured delivery positions for 60 Bombardier CS300s for deliveries from 2020, according to its business plan circulating this month.

Moxy Airlines is led by David Neeleman, founder of several airlines including Morris Air (later acquired by Southwest Airlines), WestJet, JetBlue and Brazil’s Azul Airlines.

No application for certification had been filed with the US Department of Transportation as of last week.

The plan was first reported by Airfinance Journal June 11.

Summary
  • Business plan says an “order” has been placed for 60 CS300s but also says “delivery positions” were procured.
  • Delivery positions may be those of Republic Airways Holdings.
  • Initial funding of $100m raised.
  • Secondary cities, point-to-point business model.
  • Likely boost for C Series plant in Mobile (AL)—but a suggestion that this fills the line for two years is off base.

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Pontifications: Why Embraer downplayed range of EJet

By Scott Hamilton

June 18, 2018, © Leeham News: Bjorn Fehrm on Thursday wrote (behind the paywall) that Embraer seems to be selling the E190-E2 short when it comes to range.

Embraer’s published range is 2,850nm. But Bjorn discovered that the range is truly 3,250nm, fully 14% more than the advertised range.

I laughed out loud when Bjorn told me of this discrepancy.

Why would Embraer short-change the E190-E2’s range?

The answer was obvious to me.

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Airbus-C Series closing a “positive catalyst,” say analysts

June 13, 2018, © Leeham News: The news Friday that Airbus and Bombardier concluded the deal in which Airbus takes a 50.01% ownership in the C Series program was greeted favorably by two analyst reports LNC saw.

Credit Suisse and JP Morgan each called the approval by all regulatory authorities and closing the deal—well ahead of schedule—as positive catalysts for the C Series.

A synopsis of the two research notes are below.

The partnership becomes effective July 1, just two weeks ahead of the Farnborough Air Show.

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Airbus-C Series deal closes July 1; presents challenges for Boeing, Embraer

June 8, 2018, © Leeham News: Airbus assumes its 50.01% majority stake in the Bombardier C Series program July 1, the two companies announced today.

The company is called C Series Aircraft Limited Partnership, or CSALP.

The CS100 and CS300 may be renamed the A210 and A230, according to a previous press report.

A C Series Final Assembly Line will be constructed in Mobile (AL), next to the Airbus A320 FAL, to serve the US market.

Airbus and Bombardier will speak at the Southeast Aerospace & Defence conference June 25-27 in Mobile (AL). The C Series final assembly line will be an extension of the A320 FAL.

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