Assessing the Delta-Airbus order

In an event timely to the Delta Air Lines order for 100+100 Airbus A3231neos, the airline just took delivery of the 50th A320 family member to be delivered from the Airbus Mobile (AL) plant. Source: Airbus.

By Scott Hamilton

Analysis

By Scott Hamilton

Dec. 15, 2017, © Leeham Co.: Was the choice by Delta Air Lines the big “blow” to Boeing many in the media are making it out to be?

It was a PR blow, yes. Even this was limited to those in the know.

But it wasn’t a material blow by any stretch.

Here’s why the hand-wringers are wrong.

Read more

It’s official: Delta orders A321neo with GTF engine

Dec. 14, 2017: After a wave of news stories yesterday, today’s it’s official: Delta Air Lines ordered 100 Airbus A321neos and optioned 100 more.

Deliveries begin in 2020.

The airplane will be equipped with the Pratt & Whitney GTF and Delta Tech Ops will be a third-party maintenance provider.

Delta’s investor day begins in 20 minutes. Questions about the competition with Boeing, Boeing’s trade complaint against Bombardier for the Delta C Series order and related issues are certain.

Delta Airbus deal means Bombardier trade complaint continues

Dec. 13, 2017, © Leeham Co.: Delta Air Lines chose to place its long-awaited order for the re-engined single-aisle airplanes with Airbus for the A321neo, powered by Pratt & Whitney GTF engines, according to an exclusive report from CNN’s Jon Ostrower.

The Delta Board of Directors was expected to decide today, announcing its decision either today or tomorrow at the investors’ day event.

If confirmed, the deal is a major loss for Boeing, which hoped to sell the 737-10 MAX to Delta. A win would have been a huge boost for the MAX 10.

Read more

Delta to order A321neo, GTF engines: CNN

Dec. 13, 2017: Jon Ostrower of CNN is reporting Delta Air Lines will order 100 Airbus A321neos and option 100 more, to be powered by Pratt & Whitney GTF engines.

If correct, this will be a snub to Boeing and the 737-10 MAX.

It also means the Boeing trade complaint against the Delta-Bombardier CSeries deal will continue.

The Delta board meets today to decide. Stay tuned.

Pontifications: Countdown to Delta’s single-aisle decision

By Scott Hamilton

Dec. 11, 2017, © Leeham Co.: Eyes will watch Atlanta (GA) this week, when the Delta Air Lines Board of Directors decides to award a big order for the re-engined Airbus and Boeing single aisle airplanes.

The Board meeting is believed to be Thursday. At stake: 100 orders and 100 options for either the Airbus A320neo or Boeing 737 MAX families.

I wrote about this last week. Here’s an update.

Read more

Pontifications: Delta’s decision on neo vs MAX near

By Scott Hamilton

Dec. 4, 2017, © Leeham Co.: The Delta Air Lines management decision for an order for 100 Airbus A321neos or Boeing 737 MAXes, plus an equal number of options, is expected this week. A decision by the Board of Directors is expected next week.

Competition between the two companies was heated. Commercial terms were aggressive. Airbus and Boeing each want this deal badly. An Airbus win speaks for itself. For Boeing, a MAX order would give a boost to the MAX 10. A blocking move on Airbus is desired. For Boeing, a win would be especially meaningful.

Relations between Boeing and Delta are notoriously strained. These were exacerbated by Boeing’s complaint with the US government over the Bombardier C Series order, in which Boeing alleged price dumping and illegal subsidies. To no surprise, the Trump-led Department of Commerce found in favor of Boeing on both.

Read more

Pontifications: Scrutiny of HNA intensifies

By Scott Hamilton

Nov. 27, 2017, © Leeham Co.: Time for some catch-up in the world of commercial aviation.

Scrutiny of HNA Group is intensifying as regulators in Switzerland claim the Chinese company provided false information in the takeover of a Swiss aerospace company.

Additionally, Airfinance Journal reports that at least five lessors have seen delayed lease payments from HNA Group airlines ”as HNA pumps cash from those carriers into other areas of the highly leveraged conglomerate.”

And HNA’s Hong Kong Express low-cost carrier has been barred from further expansion until it fixes problems identified by the Chinese government.

LNC reported in September that HNA was coming under credit pressure due to its high leverage.

In addition to a plethora of airline investments, HNA owns one of the world’s largest aircraft leasing companies, Avolon.

Read more

Assessing the Dubai Air Show

Subscription Required

Introduction

Nov. 20, 2017, © Leeham Co.: The Dubai Air Show was a clear win for Boeing, despite the last minute 430 airplane commitment from the Indigo Partners group.

The “MENA” region, for Middle East and North Africa, has been the staple of the Dubai Air Show.

There have been occasional smatterings of peripheral regions tossed in, but commitments from US companies (except lessors doing business worldwide) have not been a regular feature.

Summary
  • Boeing swept the MENA orders and commitments.
  • Emirates order for 40 787-10s begin delivery from 2022 and may be tied to adjustments in 777X delivery rate.
  • The lack of the widely expected A380 order from Emirates was a huge embarrassment to Airbus.
  • Bombardier, better known for its lack of orders at air shows, landed a good one at Dubai.

Read more

Pontifications: EU weighs in for Bombardier in Boeing trade fight

By Scott Hamilton

Nov. 20, 2017, © Leeham Co.: The European Union is now getting involved in the Boeing-Bombardier trade dispute. See here and here.

The EU has taken Bombardier’s side. Although the UK previously weighed in with BBD because the wings are produced in Northern Ireland, the EU hadn’t become involved. Now it has, filing briefs with the US Department of Commerce.

Why now?

Read more

Analyst: Airbus could eventually terminate CSeries program

Nov. 7, 2017, © Leeham Co.: The Bombardier CSeries may go the way of the McDonnell Douglas MD-95, a Wall Street aerospace analyst suggests: that is, the program is likely to remain unprofitable and be shut down.

Doug Harned, the analyst for Bernstein Research, draws a parallel between Airbus’ acquisition of a majority stake in the CSeries program and Boeing’s 1997 acquisition of McDonnell Douglas in which the MD-95 joined the Boeing family of airplanes.

The 110-seat MD-95 was renamed the Boeing 717. Boeing attempted to market the airplane, without success. Production was terminated after 156 airplanes were built.

Read more