Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
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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.
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.
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.
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.
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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PIPs planned for A220 to improve operating costs
Airbus A220-300, ordered by JetBlue last year. Source: Airbus.
Jan. 17, 2019, © Leeham News: Airbus is planning performance improvement packages for the A220, intended to shave operating costs off an airplane that already beat performance promises.
The PIPs, as the upgrades are known, are common among all airliners. In this case, the PIPs were under study by Bombardier long before Airbus acquired a 50.01% stake in the C Series program last year.
While financially-strapped Bombardier may have been able to find the money to execute, giant Airbus has no problem doing so.
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Airbus new A220 is more of a match for the A320neo than Airbus says
By Bjorn Fehrm
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Introduction
January 17, 2019, © Leeham News: It’s all about the new Airbus A220 on the North America press tour Airbus is hosting this week. Airbus got this top modern aircraft as a windfall after Boeing tried to block its sale on the US Market in 2017.
While the tour presents the A220 in the best of lights, it can’t shine brighter than Airbus’ own A320neo. The graph from the tour which positions them in capacity and range shows a clear little brother-large brother relationship. The reality, when comparing apples to apples, is another.
Figure 1. Airbus payload-range chart with the new A220-100 and -300 placed as shorter ranged than the A320neo and A321neo.
Summary:
- The ideal positioning of the A220 and A320 is when the larger models are higher in capacity and flies further. They cost more and shall, therefore, be better.
- But the comparison is not made with the same yardsticks. Use the same rules and the result is another.
- The more modern A220-300 can then give the A320neo a match both in range and fuel consumption per passenger.
Bombardier CEO “proud” at A220 FAL groundbreaking
Jan. 16, 2019, © Leeham News, Mobile (AL): Groundbreaking for the Airbus A220 final assembly line today might be viewed as a bittersweet moment for Alain Bellemare, CEO on Bombardier, designer of the C Series.
Airbus Group CEO Tom Enders at the A220 FAL groundbreaking in Mobile (AL). It’s his last one with Airbus., He retires in April. (Scott Hamilton photo.)
The program nearly bankrupted Bombardier. A sale of 50.01% of the CSLAP limited partnership to Airbus was necessary to save the program and Bombardier.
Bombardier’s share in the program was reduced to about a third after the Airbus sale. (A quasi-government Quebec pension fund owns the rest.)
But in an interview following the groundbreaking, Bellemare was almost giddy with excitement.
Pontifications: The Airbus North America Tour
By Scott Hamilton
Jan. 21, 2019, © Leeham News: Last week’s Airbus North America Tour (#AirbusNATour on Twitter) was a whirlwind 2 ½ days encompassing Montreal Mirabel, Columbus (MS) and Mobile (AL).
To those who don’t follow Airbus Americas closely, the Mississippi stop might be a puzzle. I’ll come back to this to explain why an international group of media, including me, made this trek.
Let’s start with Montreal.
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Posted on January 21, 2019 by Scott Hamilton
Airbus, Airfinance Journal, Bombardier, CSeries, Leeham News and Analysis, Leeham News and Comment, Pontifications
A220, A319, Air Canada, Airbus, Airbus helicopters, Alain Bellemare, Bombardier, C Series, Leeham News and Analysis, MRTT