Tariff threats, China certification issues slow A220 sales

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May 23, 2019, © Leeham News, Toulouse: Airbus took over majority interest the Bombardier C Series July 1 last year. The company immediately announced 120 orders for the CS300, renamed the A220-300, at the Farnborough Air Show, but the deals had been in the works with Bombardier before the takeover.

Another flurry of orders was announced at the end of last year.

Since then, virtually nothing.

Tuesday at the Airbus Innovation Days, Chief Commercial Officer Christian Scherer said the threat of tariffs in the US and the lack of certification in China effectively shuts out two thirds of the world market to the A220.

Monday, tensions between Canada and the US eased a bit when the Trump Administration removed tariffs on Canadian steel and aluminum. But Airbus remains a Trump target at the World Trade Organization over outstanding claims against Airbus for the A380 and A350.

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Delta Tech Ops 5-year goal to double revenues

#MROAM

Ed Bastian, Delta Air Lines CEO.

April 9, 2019, © Leeham News: Delta Air Lines has the third largest third-party MRO company in North America and aggressively seeks to grow, in sharp contrast to its competitors.

While American and United airlines have limited their own maintenance, repair and overhaul, let alone seek third party business, Delta Tech Ops is a business unit and profit center. Delta CEO Ed Bastian said today that Tech Ops will achieve $1bn in revenues this year and has a goal of $2bn within five years.

Bastian was the lead-off speaker at the Aviation Week MRO Americas conference in Atlanta this week.

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Pontifications: Boeing NewCo exec, Slattery, faces challenges

By Scott Hamilton

  • Our Monday paywall will appear at 6am Tuesday, PDT.

March 25, 2019, © Leeham News: Boeing last week announced the executive leadership for the joint venture with Embraer, the as-yet unnamed company that is generically called NewCo.

Separately, Embraer announced the departure at the end of next month of Embraer’s parent CEO, Paulo Cesar, a move that was expected.

Cesar was with Embraer for 22 years in various positions. We was president and CEO of EMB’s Commercial Aviation division and launched the E2 program in 2013.

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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.

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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.

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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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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.

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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.

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A220 wins 180 ETOPS

Jan. 14, 2019, © Leeham News: Airbus announced today that its A220 received certification for 180- minute ETOPS from the Canadian regulatory authorities.*

The announcement came at the first Airbus North American Tour, a three-day event that kicked off at the Montreal, Canada, Mirabel Airport facilities created by Bombardier.

Bombardier, of course, created the C Series, which is now the A220.

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