US start-up has a lot of Moxy

Subscription Required

Introduction

June 21, 2018, © Leeham News: A new US airline secured delivery positions for 60 Bombardier CS300s for deliveries from 2020, according to its business plan circulating this month.

Moxy Airlines is led by David Neeleman, founder of several airlines including Morris Air (later acquired by Southwest Airlines), WestJet, JetBlue and Brazil’s Azul Airlines.

No application for certification had been filed with the US Department of Transportation as of last week.

The plan was first reported by Airfinance Journal June 11.

Summary
  • Business plan says an “order” has been placed for 60 CS300s but also says “delivery positions” were procured.
  • Delivery positions may be those of Republic Airways Holdings.
  • Initial funding of $100m raised.
  • Secondary cities, point-to-point business model.
  • Likely boost for C Series plant in Mobile (AL)—but a suggestion that this fills the line for two years is off base.

Read more

Pontifications: Why Embraer downplayed range of EJet

By Scott Hamilton

June 18, 2018, © Leeham News: Bjorn Fehrm on Thursday wrote (behind the paywall) that Embraer seems to be selling the E190-E2 short when it comes to range.

Embraer’s published range is 2,850nm. But Bjorn discovered that the range is truly 3,250nm, fully 14% more than the advertised range.

I laughed out loud when Bjorn told me of this discrepancy.

Why would Embraer short-change the E190-E2’s range?

The answer was obvious to me.

Read more

Countdown to Airbus-CSeries deal: boost needed to backlog

Subscription Required

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.

Read more

Pontifications: Uncontained engine failures are rare but not unknown

By Scott Hamilton

April 23, 2018, © Leeham News: Last week’s engine malfunction on a Southwest Airlines Boeing 737-700 was another in a rare, but not unknown, uncontained engine anomaly in recent years.

All recent similar failures didn’t cause a loss of life or serious injuries if the passengers were evacuated. Unfortunately, this accident caused one fatality and seven injuries.

Let’s put the context to this issue.

Read more

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.

Read more

Pontifications: Measured comments and “useful” information

By Scott Hamilton

March 5, 2018, © Leeham Co.: Nothing is as frustrating to a journalist as interview a great subject who doesn’t offer up anything especially useful.

I had a brief sideline interview with one such person at the US Chamber of Commerce Aviation Summit 2018 last Thursday in Washington (DC). Great guy. Not much information.

Brad Tilden, CEO of Alaska Airlines, wasn’t going to be drawn into a discussion of two hot topics facing his carrier. Tilden had just come off an airline CEO panel, where he in his typical Boy Scout charm and enthusiasm opined about the state of the industry, praised the progress of the integration of Virgin America into Alaska and commented on a host of issues. But two topics didn’t come up.

I asked him about the competition vs Delta Air Lines in Seattle, where the two airlines are locked into a major market share battle. I also asked him about the fleet planning now that Alaska operates the Airbus A319, A320 and A321neo inherited from the acquisition of Virgin America. Alaska hitherto has been an all-Boeing 737 operator and recent, Ray Conner, former CEO of Boeing Commercial Airplanes and a good friend of Tilden, joined the Alaska board of directors.

Read more

Pontifications: OEMs hike list prices

By Scott Hamilton

Feb. 26, 2018, © Leeham Co.:  I’m tardy in getting around to this topic, which I do annually, because of an unusually heavy travel schedule this year.

The airframe manufacturers in January adjusted their list prices for airplanes. The prices generally went up 2%-4%, but turboprop maker ATR didn’t adjust this year.

The SADC 2018 conference includes speakers from Airbus, Bombardier, Oliver Wyman, NASA, four states in the Southeast and more. Click here for information and to register.

Read more

Boeing displaces Airbus at Hawaiian, wins 787-9 deal; airline cancels A330-800 order

Feb. 20, 2018, © Leeham Co.: Boeing has displaced Airbus at Hawaiian Airlines, winning an order for 787-9s. Hawaiian canceled an order for six A330-800s, the only order on the books for this sub-type.

An announcement could come as early as this week.

The campaign has been underway for months and the outcome was expected. Airbus offered to cut the price on the -800 and also offered the A350-900. The latter always was considered too big by carrier executives.

Boeing’s effort to displace Airbus A330neo at Hawaiian is part of an all-out, hand-to-hand combat campaign by Boeing to kill the A330neo program in advance of the potential launch of the Boeing 797.

LNC detailed the battle here.

Read more

No harm to Boeing, no threat to US aerospace, ITC finds

Feb,. 14, 2018: The US International Trade Commission’s 4-0 vote against Boeing in the Bombardier trade complaint last month found no harm was suffered by Boeing and no threat to the US aerospace industry occurred with the sale of 75 CS100s to Delta Air Lines.

Reuters first reported the issuance of the Determination. The public version wasn’t supposed to be issued until March 2. The parties received it Feb. 9.

Here is the 194-page decision: ITC Public Opinion Aircraft.

LNC hasn’t yet digested the document.

Global Services won’t hurt airline tech ops, says Boeing official

Feb. 13, 2018, © Leeham Co.: A Boeing official today dismissed concerns that expanding Boeing Global Services, with additional controls on aftermarket support for commercial airplanes it builds, might negatively impact potential sales.

Several airlines, including Delta, Singapore, Lufthansa, Air France-KLM and some Chinese carriers, operate their own MRO facilities that not only maintain their own fleets, but offer services to other airlines.

Kevin Michaels, president of the consulting firm AeroDynamics, expressed concern that Boeing’s tighter control of aftermarket parts is already leading to customer satisfaction issues at some airlines. He also said Boeing might lose airplane sales to Airbus if it is unwilling to grant MRO rights to the maintenance facilities of those carriers that operate them.

Michaels made his remarks at the annual conference of the Pacific Northwest Aerospace Alliance.

Read more