Airbus-C Series deal closes July 1; presents challenges for Boeing, Embraer

June 8, 2018, © Leeham News: Airbus assumes its 50.01% majority stake in the Bombardier C Series program July 1, the two companies announced today.

The company is called C Series Aircraft Limited Partnership, or CSALP.

The CS100 and CS300 may be renamed the A210 and A230, according to a previous press report.

A C Series Final Assembly Line will be constructed in Mobile (AL), next to the Airbus A320 FAL, to serve the US market.

Airbus and Bombardier will speak at the Southeast Aerospace & Defence conference June 25-27 in Mobile (AL). The C Series final assembly line will be an extension of the A320 FAL.

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Airbus-C Series deal to close July 1

  • Note: A press conference follows today. Here is the press release issued by Airbus and Bombardier.

Airbus, Bombardier and Investissement Québec agree C Series Partnership closing effective July 1, 2018

  • Airbus to acquire majority stake in the C Series Aircraft Limited Partnership, effective July 1, 2018
  • All regulatory approvals required for the closing of the transaction have been obtained
  • Partnership head office, leadership team and primary final assembly line located in Mirabel, Québec (representing some 2,200 employees and subcontractors), with the support of the C Series global supply chain
  • Partnership brings together two complementary product lines, with 100-150 seat market segment projected to represent 6,000 new aircraft over the next 20 years
  • Addition of Airbus’ global reach to create significant value for C Series’ customers, suppliers, employees, shareholders and communities
  • Significant C Series production efficiencies anticipated by leveraging Airbus’ production ramp-up expertise
  • Growing market for C Series to support second Final Assembly Line in Alabama, serving U.S. customers

Bombardier will talk about the new C Series Final Assembly line planned for Mobile (AL) next to the Airbus A320 FAL during the Southeast Aerospace & Defence Conference June 25-27 in Mobile.

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Countdown to Airbus-CSeries deal: boost needed to backlog

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Introduction

May 28, 2018, © Leeham News: Bombardier and Airbus may clear regulatory approvals next month, allowing for consummation of the latter’s acquisition of 50.01% of the CSeries program.

If all works, this will be well in advance of the Farnborough Air Show that begins July 15. Industry eyes will be on the FAS to see what orders might be announced by Airbus for the CSeries, which reportedly may be renamed the A210 and A230 for the CS100 and CS300 respectively.

As May fades to June, Bombardier has beefed up its skyline quality, but there are some orders that are in doubt, including a big one for 40 airplanes.

Summary
  • No sales since Dubai Air Show.
  • Airbus-CSeries deal expected to close next month.
  • Three questionable orders affect nearly 20% of backlog.
  • Farnborough Air Show will be keen to watch for news.

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Bjorn’s Corner: Aircraft stability, Part 7

By Bjorn Fehrm

May 25, 2018, ©. Leeham News: In the last Corner we discussed the autopilots one finds in Airliners and high-end Business jets. We looked at how the autopilot was part of the larger Automatic Flight Control System (AFCS) in Bombardier’s CSeries.

To understand how such an advanced system works, we need to go through the different parts of the system and understand their role when the aircraft is flown by the autopilot. We will start with the Flight Management System (FMS) this week.

Figure 1. The flight deck part of a classical FMS (Flight Management System). Source: Esterline.

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Bjorn’s Corner: Aircraft stability, Part 6

By Bjorn Fehrm.

May 18, 2018, ©. Leeham News: In the last Corner we discussed the autopilots one finds in Turboprops and entry-level Business jets. Our example was the autopilot for the Garmin G1000 integrated flight deck.

Now we will step up to the airliner level. We will look at the autopilot and its supporting avionics for the Bombardier CSeries. This is a modern, state of the art system, and a good example of the autopilots for an Airliner or top of the line Business jet.

Figure 1. The CSeries flight deck. I have marked the autopilot panel with a red border. Source: Bombardier.

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Single-aisle production on track for 1,800/yr

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Introduction

May 7, 2018, © Leeham News: Single aisle airliner production rates are on a track to hit 1,800 per year by 2022, a new analysis by LNC concludes.

This is for aircraft of 100 seats or more. Therefore, this includes the Bombardier CS100 and its competitors the Embraer E190/195 E1/E2 at the smallest end of the 100-240-seat single-aisle markets.

The dominating companies are, of course, Airbus and Boeing. Airbus plans to increase rates of its A320 family next year to 63/mo; Boeing is going to 57/mo for the 737. Both companies are studying increasing rates to 70/mo, a figure LNC believes can be sustained through at least 2025.

Bombardier plans to go to rate 10 for its C Series, a figure that may have been difficult to achieve before BBD sold 50.01% of the program to Airbus. The deal is expected to close before the Farnborough Air Show.

For purposes of this analysis, LNC assumes the deal goes through but for identification carves out C Series as a stand-alone airplane.

COMAC and Irkut are included in the forecast.

Summary
  • A320 backlogs extend through the next decade in a greater number than Boeing’s 737.
  • 737 backlogs extend through the next decade, but many operators have yet to order the MAX to fully replace retiring 737 NGs.
  • Airbus acquisition of control of C Series program gives it a boost.
  • Embraer is a niche player in the small end of the market—for now.
  • COMAC and Irkut present little near-term threat to Airbus and Boeing.

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Airbus investment resets the clock on CSeries

Special to Leeham News

 By Olivier Bonnassies

Airfinance Journal

April 17, 2018, (c) Airfinance Journal, Montreal: Aviation Week & Space Technology managing director technology Graham Warwick believe the acquisition of a 50.1% stake into Bombardier’s CSeries will give the program opportunities in many areas.

Talking at the Innovation Aerospace Forum in Montreal, Warwick says Airbus expertise in marketing, sales and support will be “immediate benefits” to the CSeries program.

Warwick recalls that Airbus is into its second iteration of the Airbus A320 program, whilst Bombardier’s CSeries is a new product.

“The CSeries is right at the beginning of its life. It clearly resets the clock for the CSeries and can even have a meaningful impact in the future,” he says.

Bombardier’s CSeries vice president program Rob Dewar says 29 CS100/300s are now in service with three customers: Air Baltic, Swiss and Korean Air.

The Canadian manufacturer continues to be pleased with the introduction into service.

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Embraer gears up for E2 delivery; a look at the 100-150 seat sector demand

March 31, 2018 © Leeham News: The first Embraer E2 jet will be delivered April 4, to Norway’s Wideroe Airlines.

The E190-E2 seats 114 passengers in one-class, 29-inch pitch and 106 at 31-inch pitch, putting it at the low end of the 100-150 seat sector that is often maligned as a Bermuda Triangle for airplanes of this size.

Wideroe of Norway takes delivery of the firzst Embraer 190-E2 April 4. Photo: Embraer

The E190-E2 competes with the Bombardier CS100, a 110-seat airplane in one-class. Neither Airbus nor Boeing have a competing product. Each offers a larger airplane in the 125-150 sector, the A319neo and 737-7 MAX respectively. Embraer and Bombardier offer the E195-E2 and CS300 in this sub-sector.

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After Boeing yields, what’s next for Bombardier CSeries?

Analysis

March 26, 2018, © Leeham News: With the decision by Boeing to let last week’s deadline go by without filing an appeal in the Bombardier trade complaint, eyes turn to “what’s next” for the CSeries.

Source: Bombardier.

LNC broke the news on Twitter that Boeing would not appeal the 4-0 decision finding it suffered no harm in the 2016 BBD-Delta Air Lines order for 75 CS100s and options for 50 more, with conversion rights to the CS300.

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NMA focus needs to be on engines

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Introduction

March 19, 2018, © Leeham Co.: As the market awaits a decision by Boeing whether to launch the New Midrange Aircraft (NMA, or 797), focus has been on the aircraft’s definition and market demand.

It should be on the engines.

It doesn’t matter whether Boeing designs a fabulous airplane that’s the next best thing to sliced bread. What matters is whether the engines will be ready in time for Boeing’s suggested entry-into-service and if they are, whether they will be reliable out of the box.

The recent track record isn’t all that encouraging. Neither is Boeing’s preferred timing.

Summary
  • CFM, GE, Pratt & Whitney and Rolls-Royce each had problems with their new engines. All continue.
  • The Boeing NMA requires brand new engines, not derivatives.
  • Engine development and certification within the Boeing preferred timeline is sporty at best.

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