Aircraft list prices largely unchanged (Updated)

Update: Airbus Jan. 11 announced a 1% list price increase. The chart has been updated.

Jan. 10, 2017: Aircraft list prices are largely unchanged for 2017, the airline industry demand cools for new aircraft.

Sales in 2017 were down for the Big Two, Airbus and Boeing. Boeing announced orders for 688 aircraft, well off of last year, which also was a major decline from the year before.

Airbus announces tomorrow, with sales expected to be in a similar range.

Bombardier and Embraer announce later this month or next.

LNC compiled the current list prices from all the manufacturers, detailed in Figure 1 below.

Airbus and Boeing discounts typically range from 40% to 60%, depending on the customer, the airplane and the size of the order. BBD and EMB discounts may also be steep, depending on the campaign.

The balance of this article is for Subscribers only.

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Bjorn’s Corner: Turbofan developments in 2017

By Bjorn Fehrm

January 06, 2017, ©. Leeham Co: Before we finish of our series on airliner turbofan technology, let’s spend this Corner on what will happen on the airliner engine front during 2017.

While there is no totally new engine that comes into the market during 2017 there are a number of new variants of existing engine families that will be introduced.

Figure 1. GasTurb principal representation of a three shaft turbofan like our reference Rolls-Royce Trent XWB. Source: GasTurb.

 

If we start with the engines for regional/single aisle aircraft and then climb the thrust scale, we will cover the engines in climbing thrust class.

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2017: the year ahead

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Introduction

Jan. 3, 2017, © Leeham Co.: The New Year is here and it doesn’t look like a good one for commercial aerospace, if measured against previous outstanding years.

There are some troubling signs ahead, piling on to a slowdown in orders from last year that didn’t even reach a 1:1 book:bill.

This year looks to be worse than last. Airbus and Boeing will give their 2017 guidance on the earnings calls this month and next. Bombardier and Embraer earnings calls are a ways off, when each will provide its guidance.

But LNC believes the Big Two in particular will be hard pressed to hit a 1:1 book:bill this year and may even struggle to match 2016 sales.

Boeing’s year-end order tally comes Thursday. Airbus’ comes on Jan. 11.

Summary
  • Wide-body sales remain weak.
  • Narrow-body backlogs and low oil prices continue to inhibit sales.
  • China, Middle East concerns emerging.
  • United Aircraft MC-21 and COMAC C919 begin flight testing.
  • Airbus A330neo, Boeing 787-10, Embraer E195-E2 and Mitsubishi Aircraft MRJ-70 roll-out and begin flight testing.
  • Airbus A321neo and Boeing 737 MAX 8 EIS.

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US, EU ignore Chinese, Russian subsidies

Nov. 15, 2016, © Leeham Co.: Government subsidies to commercial aircraft companies appear to be increasing despite the 12-year disputes before the World Trade Organization between Europe and the US over Airbus and Boeing aid.

Yet the US and Europeans appear to be doing little to try and curb the subsidies to new competitors.

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Less desirable aircraft for lessors

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Introduction

Part 3: Oct. 24, 2016, © Leeham Co.: Lessors select aircraft to add to their portfolios based on several basic criteria:

  • Is it a good airplane?
  • How are the economics?
  • Is there, or will there be, a broad customer base?
  • How “liquid” is the airplane?
  • How broad is the customer base?
  • Reconfiguration costs.
  • Commercial terms of the acquisition.

Lessors often conclude that while an airplane may be good technically and perfectly acceptable for airline use, failure to meet their specialized key criteria—notably liquidity and customer base—they may pass on the aircraft.

Summary

  • A surprising number of in-production jets and those in development don’t make a lessor’s list of desirable leasing assets.
  • The planes all are technically good aircraft.
  • Markets may evolve for some of the aircraft on the list.

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Bjorn’s Corner: The Engine challenge

 

By Bjorn Fehrm

By Bjorn Fehrm

October 21, 2016, ©. Leeham Co: In our Corners on East bloc aeronautical industries, we could see that the hardest part to master in a new civilian airliner is the engine.

Both new airliners from Russia and China (Irkut MC-21 and COMAC C919) start their lives with Western engines.

Why is this so? What are the challenges that make engines harder to create than aircraft?

leap-1c-engine

LEAP-1C which will be standard engine on COMAC C919. Source: COMAC.

We will spend several Corners on the main reasons that airliner engines are harder to do than aircraft. Read more

Seventeen new, derivative aircraft to see EIS through 2020

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Introduction

Delivery of the first Bombardier CS300, to AirBaltic, next week kicks off entry-into-service for 17 airplanes through 2020. Bombardier photo.

Delivery of the first Bombardier CS300, to AirBaltic, next week kicks off entry-into-service for 17 airplanes through 2020. Bombardier photo.

Oct. 20, 2016, © Leeham Co.: The past decade was a hive of activity as the Big Four OEMs launched new airplane programs and put the aircraft into service.

Airbus launched the A320neo, A330neo and A350 families. The A330neo is under production; the other two entered service early this year.

Boeing launched the 787 in late 2003 (outside the decade mark), rolled it out in 2007 and entered service with it in 2013. The 737 MAX was launched in 2011 and is in flight testing. The 777X was launched in 2013; components are in production.

Bombardier launched the CSeries in 2008; it entered service this year, after three years of delays.

Embraer launched the E-Jet E2 om 2013. Flight testing began this year.

New Entrants

These were supplemented by new entrants into commercial aviation: COMAC with its C919; Irkut with the MC-21; and Mitsubishi with the MRJ90. Of these, only the MRJ90 is flying. After more than two years of delays and several false starts, flight testing began in earnest this week at Moses Lake (WA) with FTA-1 (Flight Test Aircraft 1).

Development and new program launches have slowed, but the next decade is hardly going to be idle.

Summary

  • Seventeen new aircraft or derivatives are scheduled to enter service through 2020.
  • Five potential derivatives might see EIS through the same period.
  • Three to five new or potential derivative aircraft might see EIS 2021-2025.

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From zero to 10,000 in 50 years; can COMAC duplicate this achievement?

By Bjorn Fehrm

October 19, 2016, ©. Leeham Co: Airbus delivered its 10,000 aircraft last week (Figure 1), an A350-900 delivered to Singapore Airlines.

Delivering the 10,000 aircraft after 50 years of start of project is impressive, especially as the competition, Boeing Commercial Airplanes (BCA), the late McDonnell Douglas Corp and Lockheed Co, fought Airbus every step of the way.

Figure 1. Airbus 10,000th aircraft for Singapore Airlines. Source: Airbus.

We have a new player starting its 50 years, Commercial Aircraft Corporation of China, COMAC. It’s on its eighth year and the competitions’ sentiments are: “It will take long before they can compete, decades!”

Let’s compare with the rise of Airbus and see what can be learned. Will COMAC deliver its 10,000th aircraft in 50 years? Or in a shorter time? Read more

Bjorn’s Corner; The Engine Research Institutes

 

By Bjorn Fehrm

By Bjorn Fehrm

October 14, 2016, ©. Leeham Co: In our Corners on East bloc aeronautical industries, we will now look at the role of the Research Institutes in Russian and Chinese civil aircraft engine development.

The Russian engine industry is organized similarly to the aircraft industry. It has a powerful research organization which has a much larger role than research organizations in the West.

A large part of fundamental design work and testing is done at the research institute and not at the design bureau level, Figure 1.

ciam-altitude-testing-of-pd-14-side

Figure 1. PD-14 engine altitude testing at the Central Institute of Aviation Motor Development (CIAM) in Moscow. Source: CIAM.

The Chinese organization of the engine industry is similar, the difference being that the research organizations are organized within the giant AVIC (Aviation Industry Corporation of China) grouping, rather than reporting to the state via a research organization path. Read more

Airbus, Boeing agree on NMA–for now

One concept of the middle of the market airplane.

One concept of the middle of the market airplane.

Oct. 12, 2016, © Leeham Co.: It’s rare when Airbus and Boeing agree on product strategy, but officials of the two companies seemed in almost perfect alignment in separate interviews by LNC last week.

Barry Eccleston, president of Airbus Americas, and Mike Sinnett, VP of Product Strategy for Boeing, each said there is no consensus yet among customers for the Middle of the Market airplane (MOMA), also known as the New Mid-range Airplane (NMA) at Boeing.

Eccleston was interviewed on the sidelines of the annual Seattle conference organized by the British American Business Council Pacific Northwest. Sinnett was interviewed on the sidelines of the annual Governor’s Conference organized by the Aerospace Futures Alliance, a lobbying group in Washington State.

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