Jan. 15, 2015: Bombardier, struggling with poor aerospace sales across its business jet and commercial lines, missed previous guidance on cash flow and other metrics, three Wall Street investment banks reported today.
BBD’s stock traded off 22% in early trading.
Immediate reaction from the banks’ aerospace analysts: Read more
Posted on January 15, 2015 by Scott Hamilton
This is an incredibly naive assessment by BBD. We co-wrote in a study in 2009 that concluded Airbus and Boeing had no choice but to reengine their A320 and 737 families, about 18 months before Airbus launched the A320neo and two years before Boeing launched the 737 MAX. The WSJ piece is a good look at the program and competitive situation. We take a critical look at the turmoil below.
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Introduction
Jan. 9, 2015: The sudden departure of the sales chief at Bombardier Aerospace, the second time in 13 months, underscores the continuing turmoil at the multimodal transportation company and the drag its commercial aerospace unit has been and continues to be.
Summary
Posted on January 9, 2015 by Scott Hamilton
Ray Jones, who replaced Chet Fuller in December 2013 as head of Bombardier commercial airplane programs, quit.
BBD said Jones and the company mutually agreed to his departure, was was labeled for “personal reasons.” BBD would not elaborate.
Sales will report directly to Aerospace president Mike Arcamone while Jones’ replacement is found.
Philippe Poutissou, VP marketing, left last year as Jones shuffled his team. Rod Sheridan, another VP, also left last year, retiring. Both have been long-time staples of Bombardier Aerospace.
Market intelligence tells us that customers viewed their departures negatively and see a lack of continuity, hurting relationships and sales.
CSeries sales have stalled, the Q400 backlog is down to 10% of the turboprop market share and the aging CRJ is just hanging on by a flap.
Posted on January 8, 2015 by Scott Hamilton
Dec. 31, 2014, just under the wire: 2014 is over and there was some news unrelated to the loss of AirAsia flight 8501:
Bombardier: The company received a firm order for 24 CRJ900s from an unidentified customer (we believe it is a US regional airline). The National Post of Canada also has this look at how 2015 will be a “pivotal” year for the CSeries. BBD also announced an order from mega-lessor GECAS for five Q400s and options for 10 more.
ARJ-21 certified: The Chinese government certified the COMAC ARJ-21, the 70 seat regional jet that looks like the old Douglas DC-9-10. The airplane is now supposed to go into service in April or May, only eight years late.
Boeing declares victory: The year was really over yet but Boeing declared victory over Airbus in this Dec. 29 story in The Seattle Times. Yes, Boeing will deliver more airplanes than Airbus in 2014, but will it truly end with more orders? Airbus won’t reveal its full 2014 performance until its annual press conference Jan. 13, and it’s famous for announcing a whole bunch of orders to pull the proverbial rabbit out of the hat. So we’ll wait and see then who truly has the bragging rights for the full year.
Airbus and Boeing: For all of our extremely partisan Airbus and Boeing readers, choke on this one: Airbus and Boeing have teamed up to bid on a defense contract, reports Aviation Week.
Real-time tracking: It’s possible and it’s being done. See this Washington Post article.
Posted on December 31, 2014 by Scott Hamilton
Here’s a visualization of events to look for in commercial aviation in 2015.
Posted on December 26, 2014 by Scott Hamilton
Airbus, Boeing, Bombardier, CFM, China, Comac, CSeries, Embraer, GE Aviation, Mitsubishi, Paris Air Show, Pratt & Whitney, Rolls-Royce
767-2C, A320NEO, A350-1000, A350-900, A380neo, air force tanker, Airbus, Boeing, Bombardier, CFM, CSeries, E-Jet E2, Embraer, GTF, KC-46A, LEAP, MC-21, Mitsubishi, MRJ, Pratt & Whitney, Qatar Airways, Rolls-Royce, Trent XWB
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Introduction
Dec. 16, 2014: There have been record aircraft orders year after year, swelling the backlogs of Airbus and Boeing to seven years on some product lines, Bombardier’s CSeries is sold out through 2016, Embraer has a good backlog and the engine makers are swamped with new development programs.
So it is with some irony that several Original Equipment Manufacturers (OEMs) are warning of cash flow squeezes in the coming years.
Summary
Posted on December 16, 2014 by Scott Hamilton
Airbus, Boeing, Bombardier, CFM, CSeries, Embraer, GE Aviation, Irkut, Mitsubishi, MTU, Premium, Rolls-Royce
787-10, A320NEO, A330neo, A350, A380, A380-900, A380neo, A400M, air force tanker, Airbus, Boeing, Bombardier, C-17, CFM, Comac, E-Jet E2, Embraer, GE Aviation, GE9X, GTF, Irkut, KC-390, KC-46A, LEAP, Mitsubishi, MTU, Pratt & Whitney, Rolls-Royce
The new chief executive officer of United Technologies Corp., Gregory Hayes, threw cold water on hopes and dreams of Pratt & Whitney, a subsidiary, that the successful small- and medium-sized Geared Turbo Fan will grow into the wide-body market.
Aviation Week just published an article in which all three engine OEMs were reported to be looking at a 40,000 lb engine that would be needed to power a replacement in the category of the Boeing 757 and small 767. Hayes did not specifically rule out a 40,000 lb engine, leaving PW’s potential to compete for this business unclear.
Hayes has been CEO for two weeks. He was previously CFO. He made his remarks in a UTC investors event last night. The Hartford Courant has this report.
Hayes’ remarks were in response to a question from an analyst about research and development expenses. Here is his reply, from a transcript of the event:
Posted on December 12, 2014 by Scott Hamilton
Boeing, Bombardier, CFM, Comac, CSeries, Embraer, Irkut, Mitsubishi, Pratt & Whitney, Rolls-Royce
737 MAX, 757, 757 replacement, 767, 767 replacement, A320NEO, Alain M. Bellemare, Bombardier, C919, CFM, Comac, CSeries, E-Jet E2, Embraer, GE Aviation, Gregory Hayes, GTF, Irkut, MC-21, Mitsubishi, MRJ, Pratt & Whitney, United Technologies
Figure 1. Technical milestones have been passed on PW GTF programs for the applications on Bombardier, Airbus, Mitsubishi and Irkut airplanes and are approaching for Embraer. Source: MTU Investors Day. Click to enlarge.
Nov. 30, 2014: MTU Investors Day: MTU is a major participant in engine development and supplies, participating on the GEnx, GTF and GEnx program. It’s also a member of the joint venture in International Aero Engines and it’s a major player in the aftermarket Maintenance, Repair and Overhaul (MRO) sector, providing a serious competitive alternative to the aftermarket contracts offered by the engine OEMs. Its held an investors day conference Nov. 25. Highlights included:
Posted on November 30, 2014 by Scott Hamilton
Nov. 26, 2014:Storm Warnings: We’ve made references in recent posts about airlines on our “Storm Warning Flag” list.
Our 2013 Top Customers and Storm Warning Flag list for wide-body airplanes. The Red are Middle Eastern airlines, blue from Asia and black from the US and Europe. Only one airline for wide-body orders was on our Storm Warning Flag list: AirAsiaX. Expansion and ordering we considered too rapid landed the carrier on the list. Sources: Airbus, Boeing. Click to enlarge.
In 2013, we compiled the Top Customers for Single-Aisle and Twin-Aisle Airplanes for Airbus and Boeing. Here’s our 2013 Storm Warning Flag list. The name comes from the flag, which signals Storm Warnings. This list was compiled before the 777X orders announced at Dubai were firmed up, so the yellow boxes show what the Top 10 Boeing rankings would be had they been. We considered the quantity of orders, the current operations, financial status and other factors in placing a carrier on our Storm Warning Flag list. The Wide-body list also illustrates the growing importance of the Middle Eastern airlines (consider that this was a year ago). The wide-body list is pretty stable.
Posted on November 25, 2014 by Scott Hamilton
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By Bjorn Fehrm and Scott Hamilton
Introduction
Nov. 24, 2014: Bombardier CSeries flight testing has now passed 500 flight hours, and with the addition of Flight Test Vehicle 5 to the test fleet soon, the head of the program believes BBD can hit its entry-into-service target of 2H2015.
Robert Dewar, VP and GM of CSeries, declined to affirm, or even confirm, a report that EIS now has an internal target of October 2015.
In a wide-ranging interview November 24 with Leeham News and Comment, Dewar talked about the flight test program; the repairs to the composite wing of FTV1 following an engine failure that showered the wing with debris; the Fly By Wire software that’s been nettlesome; and other issues.
Summary
Posted on November 24, 2014 by Scott Hamilton