ISTAT Europe 2016: Regional aircraft market

By Bjorn Fehrm

September 26, 2016, ©. Leeham Co: We are reporting from ISTAT (International Society of Transport Aircraft Trading) 2016 in Barcelona. The regional aircraft panel, discussing the future for the regional aircraft market, featured Embraer, Bombardier, Mitsubishi Aircraft Corporation and Superjet International, presenting the strengths of their offerings and why they would have a good future share of the market.

Here’s what was presented: Read more

Bjorn’s corner: Farnborough week

By Bjorn Fehrm

By Bjorn Fehrm

July 15, 2016, ©. Leeham Co, Farnborough Air Show: We have been at Farnborough Air Show this week, the highlight of the year for an aircraft geek like me. This year there were several interesting aircraft that visited the show for the first time.

Embraer brought over the brand new first prototype of the E-jet 190-E2 and the prototype of their military transporter, the KC-390. Bombardier had their first customer/production CS100 from Swiss to visit the show in addition to their Flight Test Vehicle (FTV) no 5. And Lockheed Martin had the F35B, the vertical landing version, come and hover over the airfield the days that were reasonably rain free in the afternoon.

One thing is clear with the new generation of Single Aisle aircraft: their high bypass engines dominate the visual appearance. Figure 1 shows the 73 inch version of the Pratt & Whitney GTF on the E190-E2 prototype. Huge diameter engine on a not so huge diameter aircraft.

IMG_2020

Figure 1. The prototype E190-E2 with its Pratt & Whitney GTF engine on the Farnborough apron. LNC photo.

Read more

Pontifications: The crystal ball

Hamilton KING5_2

By Scott Hamilton

May 30, 2016, © Leeham Co.: We at Leeham Co. and Leeham News and Comment take some risk when we make analyses, forecasts, projections and predictions. These often put us out on a limb, open us to criticism and even ridicule and as often as not really pisses off those companies that are the target of such predictions.

Some recent events and news stories caught my eye that validated something I predicted eleven years ago.

First, the set up.

Read more

Embraer 1Q2016 results: Strong start to the year

By Bjorn Fehrm

3 May 2016, ©. Leeham Co: Embraer has made a good start to 2016. Group revenue for 1Q2016 was $1,309m compared to $1,056m 1Q2015, up 24% year on year. EBIT was $86m compared with $80m a year ago, giving a margin of 7.5%.

The major increase in revenue was for the Business jet side which delivered 23 aircraft compared to 11 1Q2015. Commercial aircraft increased with one aircraft to 21 deliveries.

e175unitedexpress_embraer

Embraer’s commercial aircraft best seller, the E175 being delivered to United Express. Source: Embraer.

The commercial aircraft side sold 23 E175-E2 in the quarter giving a Book-to-Bill of 1.1. Sales for the Business Jets side was not publicized. Group order backlog was $21.9b compared to $20.4b for 1Q2015. The balance sheet is strong with $1,854m in cash and total debt of $2,389m.

The group’s only problem area is domestic state demand. Its KC-390 military transport program has stopped once for lack of Government payments and it risks being caught again in the problems of the Brazilian state economy.

Here the details of the financial results for the divisions and their aircraft programs. Read more

Bjorn’s Corner: C Series flight controls

By Bjorn Fehrm

By Bjorn Fehrm

29April 2016, ©. Leeham Co: With the order by Delta Air Lines, the Bombardier C Series has taken the step up to be a viable alternative to Airbus’ and Boeing’s single aisle 130-150 seat aircraft.

In my description of airliners’ flight control and Flight Management Systems (FMS), I have focused on the established mainline single aisle players. Time to change that; C Series has arrived and will stay in the mainline segment.

Why 130 seats as a limit? Because below 130 seats there are a number of additional players (Embraer, Sukhoi, Mitsubishi…) and we can’t describe them all right now.

Now to how Bombardier has implemented the flight controls, autopilot and FMS for the C Series. In fact, we will look at how they have made the C Series cockpit, Figure 1.

C Series flight deck

Figure 1. C Series flight deck. Source: Bombardier.

I haven’t flown the C Series yet (working on it!) but I have been able to glean quite a bit over time and spent quite some time in the cockpit with the Bombardier test pilots at the Paris Air Show.

So here is a shot at describing the C Series control philosophies and capabilities and how they mimic/differ from Airbus and Boeing.

Read more

Bombardier’s Delta deal looking good, but don’t celebrate yet

Subscription Required

Introduction

Air Baltic CS300

Air Baltic will be the first operator of the Bombardier CS300. Source: Bombardier.

April 18, 2016, © Leeham Co.: Bombardier, if it didn’t dominate the news cycle in commercial aviation last week, must have come close. Consider:

  • The Wall Street Journal, and then Bloomberg, reported that BBD was near to winning a big order for 75+50 from Delta Air Lines for its C Series.
  • Reuters reported that BBD rejected demands from the Canadian federal government in Ottawa as conditions for investing US$1bn in the company. (Officials tried to walk this back some, saying talks continue.)
  • The head of corporate strategy for BBD came forward to forcefully argue for the investment as good for taxpayers, breaking what largely has been a cone of silence over the perceived merits of a deal
  • The US$1bn the Quebec provincial government agreed to invest last year remains unfunded.
  • BBD stock, which last year dropped to less than C$1, threatening the listings on the Canadian exchanges, jumped to C$1.75 at one point in anticipation of a Delta order.

While on balance, it seems likely Delta will order the C Series, Bombardier has been down this road before. Only a few months ago, the market and others were excited over the prospect that BBD was close to landing an order from United Airlines, only to see Boeing swoop in and grab the deal.

Summary

  • This is the second try at a major contract with Delta Air Lines.
  • The primary competition is against Embraer, not Airbus or Boeing.
  • We revisit our Skyline Risk Assessment, dormant for the extended period in which BBD had no sales of the C Series.

Read more

Can Bombardier extend CS300 to a CS500?

By Bjorn Fehrm

Subscription required

Introduction

April 14, 2016, ©. Leeham Co: Bombardier is working hard to get additional mainline airline customers for its C Series project. The latest discussion is whether Delta Air Lines would replace its fleet of Boeing MD-88s with the C Series.

CS300

Figure 1. C Series largest model, CS300. Source: Bombardier.

In this context, it’s also discussed if the largest model, the CS300, Figure 1, is large enough for Delta. This aircraft seats 135 passengers in a two class configuration and up to 160 passengers in an all economy high density version.

The question is whether this is sufficient for Delta and other mainline customers, or if a still larger version is needed in the program, the oft-discussed CS500. We decided to use our proprietary aircraft model to see if a CS500 would be straight forward for Bombardier to develop, should Delta or any other customer ask for a three model C Series program.

Summary

  • The C Series aircraft program was developed with the CS300 as the main model. The wing, engine and landing gear were dimensioned with the CS300 in mind.
  • The CS100 is a shrink of the CS300, and not vice versa (the CS300 a stretch of the CS100).
  • A tentative CS500 stretch if therefore a first stretch of the program’s main model and not a double stretch of a CS100.
  • This is evident when one starts to analyze how a CS500 would be designed. There are rather modest changes that need to be done to create an extended model that seat up to 180 passengers.

Read more

Bjorn’s Corner: Embraer’s Fly-by-wire approach

By Bjorn Fehrm

By Bjorn Fehrm

08 April 2016, ©. Leeham Co: Two weeks ago we discussed the advantages of a Fly-By-Wire (FBW) system which uses feedback based flight laws. We discussed the fact that aircraft OEMs can get the desired FBW handling characteristics with smaller horizontal tail surfaces. I put forward the Embraer E-Jets as an example where the change of FBW principle allowed a 26% reduction in the horizontal tail size for the E2 generation.

At the time there were some debate on how this was achieved and what the root cause of the improvement was. Embraer followed the discussion and told me when I contacted them that my information was correct. In the interest of our readers, Embraer agreed, however, to have their FBW team to give a more complete picture of the advantages of a feedback based FBW.

Here is the team’s response. Read more

PW Canada continues next-gen turboprop development despite airplane demand uncertainty

 

PWC_NGRT

Pratt & Whitney Canada’s next generation turboprop. Source: PWC. Click on image to enlarge.

March 24, 2016, © Leeham Co.: Pratt & Whitney Canada (PWC) continues development of the next generation turboprop engine, even as low oil prices reduce the attractiveness of turboprop airplanes.

Few believe oil prices won’t creep back up over time, once again making prop-jets attractive once again. The ancillary question is what’s next for this type airplane? An entirely new, clean-sheet design? A 90-100 seat turboprop airplane? Or retrofitting this next-gen engine on today’s turboprop airliners?

Summary

  • PWC’s new engine could be fitted to a new airplane design or retrofitted to today’s Bombardier Q400 and ATR series airplanes.
  • The 20-year market is small.
  • The 20-year market for a 90-seat turboprop is smaller still.
  • Embraer is evaluating whether to reenter the turboprop market, 15 years after the last mass-produced Brasilia rolled off the assembly line.
  • GE is developing a turboprop engine and at least three countries have interest in this sector.

Read more

Nordic Aviation Capital completes second major acquistion

March 15, 2016: Nordic Aviation Capital yesterday announced it acquired regional aircraft lessor Jetscape Aviation Group. This is the second major acquisition since December. Then, NAC agreed to acquire 25 ATR turboprop aircraft from Air Lease Corp., which decided to focus entirely on jets, most of which are mainline aircraft. All but a handful of the ATRs were already leased, with the remaining still in production.

Nordic had nearly 250 aircraft from the ATR and Bombardier Dash and Q families, plus a small number of Bombardier CRJs, Airbus A320s and Boeing 737s. The Jetscape acquisition brings Embraer EJets to the Nordic portfolio.

“The deal will see Nordic Aviation Capital expand into the regional jet arena, bringing 28 owned Embraer E-Jets, commitments for 11 E-Jets and a further 18 of the type under management into its sizeable regional aircraft portfolio,” the company said in a press release.

Read more