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.
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.
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.
Jan. 17, 2018, © Leeham Co.: Airbus announced a list price hike Monday of just under 2%.
Such price hikes are common. Boeing hasn’t announced whether it will raise the list prices this year, but in the past, it’s typically done so.
Airbus continues to list the A318 and A350-800 in its price list. There hasn’t been a commercial sale of the A318 in years and Airbus skipped creating a neo version of this double-shrink airplane.
Ostensibly, Airbus continues to offer the aircraft as an Airbus Corporate Jet (ACJ), but sales of this are few and far between.
Airbus also continues to list the A330-800 despite having only one customer with a small order for the airplane.
John Leahy, the chief operating officer-customers for Airbus, will retire in January after 33 years with the company. LNC’s editor, Scott Hamilton, has known Leahy for most of this time. This is the second of a series of reports derived from interviewing Leahy about his pending retirement. The first article appeared Nov. 28.
By Scott Hamilton
Dec. 14, 2017, © Leeham Co.: When John Leahy was promoted from his position as head of Airbus sales in North America and moved to headquarters in Toulouse,
France, to assume the world-wide position as head of sales, he had an ambitious goal to achieve 50% market share by 2000.
He had a little over five years to go from low-double digits to this lofty goal.
The Airbus executive board initially laughed at him, Leahy recalls 22 years later.
Sept. 30, 2017, © Leeham Co.: Today is the 49th anniversary of the roll-out of the Boeing 747-100.
On Nov. 7, United Airlines operates its last 747 flight. Delta Air Lines ends it 747 service this year. Afterward, there won’t be a single US operator of the passenger model.
The 747 remains in service with US cargo carriers Atlas Air, Kalitta Air, UPS and a few others. Globally, British Airways, Lufthansa and Korean Air Lines are among those flying the passenger model.
Ted Reed, one of the writers of TheStreet.com, asked me earlier this month to give some thoughts about the 747. Below is what I gave him; he excerpted some for his column in Forbes. The focus was on US operators.
By Bjorn Fehrm
April 12, 2017, ©. Leeham Co: Aeroflot, established as the Soviet Union’s flag carrier in 1923, transformed from a state enterprise to a modern airline group after the fall of the Soviet Union in 1991.
The airline is today Europe’s seventh largest airline, two-thirds the size of Turkish Airlines, but having the same fast growth since 2005. We will cover Aeroflot’s journey in a series of articles, starting with the group’s history.
March 24, 2017, ©. Leeham Co: After covering the maintenance market for single-aisle engines, time has come for the engines used on wide-body aircraft. The engine maintenance for a wide-body engine is a bit different to the single-aisle engine. The difference is caused by the longer flight times for the wide-bodies. This makes the flight time wear a more dominant maintenance driver than it is for the single-aisle engines.
The changes in overhaul work caused by the difference in flight profiles and the lower number of engines in the market (compared to the single aisles) will affect how the overhaul market is structured and who are the dominant players.
September 30, 2016, ©. Leeham Co: In our Corners on East bloc aeronautical industries, we will now look at the Chinese civil aircraft industry.
The Chinese aero industry has similarities with the Russian industry in its overall structure. From the start of the industry in the 1950s, it was structured after the Soviet model of research institutes, design bureaus and production companies.
The difference to the Soviet Union was that its own Chinese aircraft designs only started in the 1970s. Before that, the industry built Soviet designs on license and then modified versions of licensed designs.
The first own aircraft designs were presented in the 1980s with a focus on military designs for the first 20 years. Read more
By Bjorn Fehrm
August 21, 2016, ©. Leeham Co: The discussions around a joint Russian and Chinese development of a 250-300 seat wide-body has been going on for years.
The project got a more concrete form at President Putin’s visit to China in June. On the 25th of June visit, an inter-governmental agreement to develop and market the aircraft was signed.
At the same time Russia’s United Aircraft Corporation (UAC) and Commercial Aircraft Corporation of China (COMAC) agreed to establish a joint venture for the program.
What market is this aircraft trying to address and will it become a serious player in the wide-body market? Will it give the duopoly Airbus/Boeing something to worry about?
We will address these questions in a series of articles. Before going into the questions around the wide-body program, we will look at the players, UAC and COMAC. Are they up to the job of making a competitive wide-body aircraft?
June 6, 2016, © Leeham Co.: Sweetheart deals to win strategic aircraft orders are nothing new in commercial aviation.
John Leahy, COO-Customers for Airbus, last week poked Bombardier for its order from Delta Air Lines. Citing a reported airplane sales price of $22m, which Leahy estimated cost BBD $7m per airplane, Airbus’ chief salesman—known for his barbs and quips—said if BBD sold more C Series faster, the company would go out of business quicker.
Set aside for the moment the numbers he cited as unknown quantities. LNC has different figures we’ve reported and in two posts on my column at Forbes, here and here, there are other aspects to the Delta deal that affect economics.
It’s undisputed that BBD took a US$500m charge against the Delta, Air Canada and AirBaltic deals. The second Forbes post explains why. It’s all about the learning curve. Airbus and Boeing know about this: the first A350s are being chalked up to big losses and the 787 has $29bn in production costs. But it’s not to their benefit to acknowledge this when criticizing the C Series deals.
All this is neither here nor there, however. Airbus, Boeing and McDonnell Douglas all have (had) done deals that don’t seem to make commercial sense when key, strategic transactions were necessary.