Commentary
May 1, 2017, © Leeham Co.: Boeing’s complaint against Bombardier’s CSeries transaction with Delta Air Lines, and a request for millions of dollars in antidumping and penalties might be coming at a bad time.
Was the Boeing 787 program marked by “launch customer pricing” or “dumping”? This may depend on program or unit accounting. Boeing photo.
“Boeing requests that the Department initiate an antidumping investigation and impose antidumping duties on Aircraft from Canada in an amount sufficient to offset unfair pricing above.”
If Boeing is successful in its request of the US government and International Trade Commission to impose duties before the first CS100 is delivered to Delta next year, the cost of the airplane will balloon from the $19.6m Boeing calculates (and which BBD denies) to at least $33m.
It’s unclear from the complaint who would pay this penalty—Bombardier, maintaining the price to Delta, or would Delta have to pay the reset price?
Regardless, this kerfuffle can’t be welcome news to Delta, which already has a ruffled relationship with Boeing due to its opposition to the ExIm Bank and orders for Airbus aircraft.
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Leeham News and Analysis
Boeing-Bombardier complaint could affect competition in coming Delta neo-MAX RFP
Commentary
May 1, 2017, © Leeham Co.: Boeing’s complaint against Bombardier’s CSeries transaction with Delta Air Lines, and a request for millions of dollars in antidumping and penalties might be coming at a bad time.
Was the Boeing 787 program marked by “launch customer pricing” or “dumping”? This may depend on program or unit accounting. Boeing photo.
“Boeing requests that the Department initiate an antidumping investigation and impose antidumping duties on Aircraft from Canada in an amount sufficient to offset unfair pricing above.”
If Boeing is successful in its request of the US government and International Trade Commission to impose duties before the first CS100 is delivered to Delta next year, the cost of the airplane will balloon from the $19.6m Boeing calculates (and which BBD denies) to at least $33m.
It’s unclear from the complaint who would pay this penalty—Bombardier, maintaining the price to Delta, or would Delta have to pay the reset price?
Regardless, this kerfuffle can’t be welcome news to Delta, which already has a ruffled relationship with Boeing due to its opposition to the ExIm Bank and orders for Airbus aircraft.
Read more
24 Comments
Posted on May 1, 2017 by Scott Hamilton
Airbus, Boeing, Bombardier, CFM, CSeries, Delta Air Lines, Embraer, Leeham News and Comment, Pratt & Whitney
737 MAX, 737-10, 737-900ER, 787, 7M7, A320ceo, A320NEO, A321ceo, Airbus, Boeing, Bombardier, CFM, CS100, CSeries, Embraer, LEAP, Pratt & Whitney
Could an NMA be made good enough? Part 6
By Bjorn Fehrm
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Introduction
April 27, 2017, © Leeham Co.: We have in several articles gone through the sizing of an NMA (New Midrange Aircraft). We looked at the fuselage, cabin, wings and engines. Now we will sum the exercises and look at the performance of the resulting aircraft.
Boeing is seriously considering launching an NMA. The key to the launch decision will be the airplane’s economics: for development and production as well as operation.
The idea is the NMA shall have “twin aisle comfort with single aisle economics.” We will now use or performance model to analyze if the final aircraft has these characteristics.
Summary:
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Posted on April 27, 2017 by Bjorn Fehrm
Airbus, Boeing, CFM, Future aircraft, MOM, Pratt & Whitney, Premium, Rolls-Royce
7M7, A321LR, Airbus, Boeing, CFM, MOM, NMA, Pratt & Whitney, Rolls-Royce
Could an NMA be made good enough? Part 5
By Bjorn Fehrm
Subscription Required
Introduction
April 20, 2017, © Leeham Co.: After defining the fuselage and wings, it’s now time for the engines. We go through the sizing criteria for engines for airliners and find the size of engine that is needed for the NMA.
The NMA will need engines which are larger than the single aisle engines for Airbus’ A320neo and Boeing’s 737 MAX. But they will be smaller than the next size up for modern engines, the GEnx-2B for Boeing’s 747-8.
Figure 1. The NMA takes more and more the shape of a 767 replacement (A United 767-200). Source: United
This means the NMA will need new engines, at least 50% larger than the present engines designed for A320neo and 737 MAX.
Summary:
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Posted on April 20, 2017 by Bjorn Fehrm
Airbus, Boeing, CFM, GE Aviation, Middle of the Market, MOM, Pratt & Whitney, Premium, Rolls-Royce
737 MAX, A320NEO, Airbus, Boeing, CFM, CFM LEAP-1A, GTF, MOM, NMA, Pratt & Whitney, Rolls-Royce, Ultrafan
Aeroflot, the route to a modern airline, Part 2
By Bjorn Fehrm
April 19, 2017, ©. Leeham Co: In our second article about Aeroflot, the Soviet Union flag carrier that transformed to a modern airline, we will cover the period from the fall of the Soviet Union until 2010.
This was the difficult period for all participants. The old structures no longer existed and were replaced with… nothing, followed by uncertainty and a long struggle to get back to normal.
Figure 1. IL-96-300, a Soviet long range aircraft which stayed in the Aeroflot fleet until 2014. Source: Aeroflot.
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1 Comment
Posted on April 19, 2017 by Bjorn Fehrm
Airlines, Antonov, Boeing, CFM, Irkut, Sukhoi, United Aircraft, United Engine Corp., YAK
737, 767, 777, A320, A330, A350, Aeroflot, Airbus, Boeing, Ilyushin, Tupolev, Yakolev
Asian airline shift portends big ramifications
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Introduction
April 17, 2017, © Leeham Co.: A shift is underway among Asian airlines that could have ramifications for the airframe and engine manufacturers and, by extension, their suppliers.
It doesn’t appear, however, that aerospace analysts in the US and Europe realize this shift. At least none has written about it that we’ve seen among the research notes we receive.
Summary
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1 Comment
Posted on April 17, 2017 by Scott Hamilton
AirAsia, Airbus, Airlines, Boeing, CFM, Lessors, Pratt & Whitney, Premium, Rolls-Royce
AirAsia, AirAsiaX, Airbus, airines, Boeing, CebuPacific, CFM, Goldman Sachs, Jeju Air, LionAir, Pratt & Whitney, Rolls-Royce
Pontifications: Lessor cites cool reception to MAX 10
By Scott Hamilton
April 17, 2017, © Leeham Co.: Buckingham Research Group last week issued back-to-back notes about Boeing. One was a recap of an investors call with Steve Rimmer, CEO of Altavair Airfinance (nee Guggenheim Aviation partners). The other was BRG’s earnings preview, the first off the mark for Boeing’s earnings call on April 26.
I’ll include a summary of BRG’s earnings preview in a subsequent post when other analysts issue their previews.
BRG’s Rimmer note is lengthy and covers industry issues beyond Boeing. Here are a couple of the Boeing-focused points:
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73 Comments
Posted on April 17, 2017 by Scott Hamilton
Airbus, Boeing, CFM, Middle of the Market, Pontifications, Pratt & Whitney
737-10, 797, 7M7, A320NEO, Airbus, Altavair, Boeing, Buckingham Research Group, CFM, GTF, LEAP-1A, Middle of the Market, MOM, NMA, Pratt & Whitney, Steve Rimmer
Bjorn’s Corner: Aircraft engines, sum up
By Bjorn Fehrm
April 14, 2017, ©. Leeham Co: We’ve been talking engines on Fridays since October 2016. The Corners covered several areas, from technologies to operations.
And we could go on and dig deeper. But we will move on.
Before we go, we sum up what we have learned in the 24 Corners around airliner Turbofans.
Figure 1. Principal picture of a three-shaft wide-body turbofan. Source: GasTurb.
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15 Comments
Posted on April 14, 2017 by Bjorn Fehrm
Bjorn's Corner, CFM, China, Comac, GE Aviation, International Aero Engines, Pratt & Whitney, Rolls-Royce, United Aircraft, United Engine Corp.
CFM, Comac, GE Aviation, Pratt & Whitney, Rolls-Royce, UAC, United Aircraft, United Aircraft Engines
Bjorn’s Corner: Aircraft engine maintenance, Part 6
By Bjorn Fehrm
April 7, 2017, ©. Leeham Co: Last week’s Corner developed the overhaul shop visits per year for wide-body engines. We will now look at how the market develops around these overhaul opportunities.
How does the shop structure develop over a popular engine’s life-cycle? How much choice has an operator and when?
Figure 1. Principal picture of a three-shaft wide-body turbofan with station numbers. Source: GasTurb.
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7 Comments
Posted on April 7, 2017 by Bjorn Fehrm
Airbus, Airlines, Bjorn's Corner, Boeing, CFM, Engine Alliance, GE Aviation, McDonnell Douglas, MTU, Pratt & Whitney, Rolls-Royce
Airbus, Boeing, CFM, GE Aviation, Pratt & Whitney, Rolls-Royce
Pegasus Airlines, bridging Europe and Asia
By Bjorn Fehrm
April 05, 2017, ©. Leeham Co: Turkey’s Pegasus Airlines has its operations center south of Hungary’s Wizz Air that we wrote about last week. With a hub in Istanbul, the Turkish LCC connects Europe and West Asia/Middle East.
Pegasus is a fraction larger than Wizz Air and had the same dynamic development until last year, when the internal unrest in Turkey threw a spanner in the airline’s growth. Read more
2 Comments
Posted on April 5, 2017 by Bjorn Fehrm
Airbus, Airlines, Boeing, CFM
737-800, A320NEO, Airbus, Boeing, CFM, easyJet, Pegasus Airlines, Ryanair, Wizz Air
Could an NMA be made good enough, Part 2?
By Bjorn Fehrm
Subscription Required
Introduction
April 3, 2017, © Leeham Co.: In the first part of our investigation on how good an NMA can be, we explored low weight and drag fuselage design. We will now continue with the design consequences for the fuselage construction and the cabin.
What drives whether one goes for an Aluminum or CFRP (Carbon Fiber Reinforced Polymer) fuselage?
Figure 1. The NMA takes more and more the shape of a 767 replacement (A United 767-200 pictured). Source: United.
What will be the typical dimensions for an NMA fuselage and what will be passenger capacities?
Summary:
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3 Comments
Posted on April 3, 2017 by Bjorn Fehrm
Boeing, CFM, Future aircraft, Middle of the Market, MOM, Pratt & Whitney, Premium
787, 7M7, Airbus, Boeing, CFM, MOM, NMA, Pratt & Whitney, Rolls-Royce
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