Leeham News and Analysis
There's more to real news than a news release.
Pratt & Whitney, rest of industry, await Boeing decision on NMA
June 1, 2017, © Leeham Co.: Pratt & Whitney, like the airlines, lessors, suppliers and competitors, awaits a decision by Boeing whether it will launch the New Midrange Aircraft for the Middle of the Market sector.
PW’s president, Bob Leduc, said the company is going through its business case studies
Bob Leduc, president of Pratt & Whitney. UTC photo.
even as it provides information to Boeing.
In an interview yesterday with Leduc and PW Commercial Engines president Chris Calio at PW’s pre-Paris Air Show media days near its West Palm Beach (FL) engine production facility, Leduc says the market size and the assumption Boeing will choose two engine makers to power the NMA are among factors that will drive the business case.
Here is a transcript of the interview on the NMA and other topics. The lead into the NMA evolved from a question about the aftermarket services PW—and Boeing—have as strategic profit-center goals.
Paris Air Show Preview
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Introduction
May 22, 2017, © Leeham Co. The Paris Air Show begins June 17, and few in the industry expect much in the way of orders this year.
The order cycle is on the downward side of the bell curve. Sustaining the 2,000, 3,000 or nearly 4,000 gross orders announced 2011-2013 simply couldn’t be achieved. The “order bubble” had to break, and it did. Last year, Airbus and Boeing reported some 1,400 orders between them.
Airbus guides that it will tough to achieve a 1:1 book:bill this year. Boeing is running about 1:1 book:bill so far but it also guides conservatively. Still, LNC thinks Boeing might surprise this year–and some of this could be at the Paris Air Show.
Leeham Co.’s new publication, Commercial Aviation Report, provides a Focus Report on the Air Show. This encompasses the expectations for Airbus, Boeing, Bombardier, Embraer, COMAC, Irkut, Mitsubishi, CFM, GE Aviation, Pratt & Whitney and Rolls-Royce into one easy-to-read package.
The pre-airshow press briefings by the OEMs begin next week. We don’t expect any earth-shattering news from these and we wanted to get our views out ahead of these briefings.
Summary
- Boeing wants to launch the 737-10 MAX at the Paris Air Show. This could spur a group of orders that would give Boeing a rare win in the headlines vs Airbus on the latter’s home ground.
- Mitsubishi plans to have its MRJ90 at the Air Show. One airplane entered the paint shop for ANA colors–this might be the one making the appearance.
- Embraer expects to have its KC-390 there. Will the E195-E2 also make an appearance?
Pontifications: Emirates profits drop 83%, MC-21 and more news last week
By Scott Hamilton
May 15, 2017, © Leeham Co.: It was a busy news week last week.
- Emirates Airline headlined its 29th consecutive year of profits, but downplayed an 83% decline.
- The Irkut MC-21 moved to the tarmac, an indication first flight may be coming shortly.
- Multiple media reports indicate that electronics flight ban from the Middle East may be extended in part to all of Europe.
- Boeing suspended test flights on the 737 MAX after CFM discovered some quality issues in some LEAP 1B engines.
Let’s look at these events.
How Airbus can kill the Boeing 797
Artisit concept of the Boeing 797. Rendering via Google images.
May 10, 2017, © Leeham Co.: Airbus can kill the business case for the prospective Boeing 797, the New Midrange Aircraft also known as the Middle of the Market Airplane,
- Reuter’s Tim Hepher has this story.
- CNN’s Jon Ostrower has this story.
All it has to do is move first, instead of waiting for Boeing to launch the 797, something considered likely next year.
If Airbus launched what is commonly called the A322, a larger, longer-range version of the A321neo, the new version would become a true replacement for the Boeing 757, meet economics of the smaller 797, which has a working title of the 797-6, at a much lower capital cost.
C919, the Chinese challenger
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By Scott Hamilton and Bjorn Fehrm
May 01, 2017, ©. Leeham Co: The COMAC (Commercial Aircraft Corporation of China) C919 is expected to have its first flight this month, perhaps as early as this week. We review where the program stands and how it compares to its competition.
When the C919 program was launched in 2008, neither Airbus nor Boeing envisioned re-engining the A320 and 737 families. First flight was planned for 2014 and entry-into-service in 2016.
The C919 would have had economic and capital cost advantages over the A320 and 737NG. With program delays of at least four years, and maybe more, those advantages have been narrowed. Read more
Pontifications: Boeing complaint against Bombardier no surprise
By Scott Hamilton
May 1, 2017, © Leeham Co.: The Boeing Co. filed a complaint with the US Commerce Department and the International Trade Commission charging the Bombardier “dumping” the CSeries in the US to the detriment of Boeing and its 737.
Brazil, on behalf of Embraer, another competitor to Bombardier and the CSeries, previously filed a complaint with the World Trade Organization over similar charges that the Canadian and Quebec governments improperly subsidized BBD when they bailed out Bombardier for the CSeries.
The federal and provincial governments provided about US$1.5bn in investments in a new company that segregated the CSeries from Bombardier. A quasi-government pension fund took an investment in BBD’s rail division, also for more than US$1bn.
Neither move is a surprise.
At the time, the Canadian investments in Bombardier and the CSeries pretty much transformed the CSeries into a government program, managed by BBD.
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:
- An NMA designed to the principles in our articles will have a seven abreast dual aisle cabin. The cabin will increase passenger comfort in the 200 to 260 seat range and speed ground operations.
- Careful design of the fuselage, paired with a modern wing and engines, would produce an NMA with “dual aisle comfort and single aisle economics.”
Could an NMA be made good enough? Part 5
By Bjorn Fehrm
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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:
- An NMA engine will be sized by V2 safety speed or Maximum Continuous Thrust (MCT) criteria.
- The normal Top of Climb (ToC) sizing point will be less stressing for a twin engine airliner like NMA.
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.
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.
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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