Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
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Paris Air Show, Day 2: Orders and commitments
June 18, 2019, © Airfinance Journal: Boeing received a much-needed vote of confidence in its grounded 737 Max aircraft with a commitment for 200 of the type from IAG. 
Nonetheless, the US manufacturer failed to register a firm order from the second day in a row.
Airbus, in contrast, continued to build momentum for its new A321XLR with orders and commitments from IAG and Cebu Pacific.
CFM also had a good day, registering big orders from lessors and AirAsia for its LEAP engine.
Paris Air Show, Day One: Mitsubishi makes case for “SpaceJet” market opportunity
By Judson Rollins
June 17, 2019, © Leeham News, Paris: Senior executives from Mitsubishi Aircraft Company (MITAC) and parent Mitsubishi Heavy Industries (MHI) described the long journey to the revamped “SpaceJet” M90 and M100 aircraft. They also commented on what market role the SpaceJet could potentially fulfil, as well as potential incremental improvements to the aircraft.
MHI chairman Shunichi Miyanaga said that market conditions and competitive landscape have changed in the company’s favor as the need for regional jet replacement has grown and competition has dwindled down to just a single player, Embraer.
Paris Air Show Orders, Day 1
June 17, 2019, (c) Leeham News: Here are the orders and commitments for Day 1 of the Paris Air Show, courtesy of Airfinance Journal.
Evolving the MRJ into the SpaceJet
June 13, 2019, © Leeham News: Mitsubishi Aircraft Corp. (MITAC)’s redesign of the MRJ70 and launch of the M100 SpaceJet in its place reflects a changing market environment when the MRJ program was launched more than a decade ago.
Then, MITAC—and Embraer—thought the restrictive US Scope Clause with the pilots’ unions of US major carriers would be relaxed by now.
- Related story: A technical look at the new SpaceJet.
MITAC launched the MRJ90 90-seat aircraft, to be followed by the MRJ70, a 70-seat airplane. Embraer launched the E175-E2 re-engined model of the popular E175.
Mitsubishi’s SpaceJet is the new brand for the revised MRI70 design, which has more passengers, a different wing and slightly longer fuselage than the original. Entry into service is planned for 2023. Source: Mitsubishi Aircraft Corp.
Neither complied with Scope as then defined, specifically the maximum takeoff weight of 86,000 lbs. Each exceeded this limit by about a ton.
(There are restrictions as to the number of seats and number of airplanes that can be operated by regional airline partners, too, but it’s the weight limit that’s the key issue here.)
Embraer in holding pattern awaiting JV approvals
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Introduction
June 10, 2019, © Leeham News: Embraer is in a holding pattern of sorts.
It’s awaiting international regulatory anti-trust approval for the joint venture with The Boeing Co.
It can’t coordinate with Boeing about synergies until these approvals come.
Its leadership is identifying areas that, from its perspective, can lead to synergies.
Some key campaigns for the E-Jet E2 appear to be on hold while customers wait for Boeing and Embraer to join in order to see how pricing may be reset, competition with the Airbus A220 shapes up, what synergies between the E2 and Boeing’s 7-Series product lines might emerge and how Embraer’s Services unit integrates with Boeing Global Services.
Pontifications: Melancholy about Embraer’s 50th year
By Scott Hamilton
June 10, 2019, © Leeham News: Embraer is 50 years old Aug. 19.
This must be the classic case of mixed feelings. By the end of the year, if regulators approve, the marquis business unit, Commercial Aviation, will be spun off and the Embraer name for it disappears into Boeing Brasil-Commercial (BB-C).
Boeing will own 80% of the new joint venture and Embraer retains 20%. Boeing has the governance and chairman. Embraer’s CEO of Commercial Aviation becomes president and CEO of BB-C, but the direction now will clearly be set by Boeing.
Sixty percent of Embraer’s services unit goes into BB-C.
Embraer and Boeing also created a second JV, for the KC-390 program. Embraer retains 51% and Boeing gets 49%.
Embraer retains full control over the remaining defense and business jet units.
Officials put a “best face” on the pending changes at Embraer’s pre-Paris Air Show briefings May 27-29, but they really could not mask the uncertainties and, to some degree, resignation about the future.
Mitsubishi in negotiations with Bombardier to acquire the CRJ program (Updated)
By Bjorn Fehrm
June 5, 2019, © Leeham News.: The Air Current broke the news earlier today Mitsubishi Heavy Industries (MHI) is negotiating with Bombardier to buy the CRJ program.
BBC has got comments from both companies confirming the discussions, with cautions nothing is settled and it can still result in a no deal. Should it happen it would make a lot of sense for both parties.
UPDATE: Bombardier has issued a statement confirming the discussions, see below.
2019 Paris Air Show Preview
By Vincent Valery
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June 3, 2019, © Leeham News: The 2019 Paris Air Show kicks off in two weeks at the Le Bourget Exhibition Center.
In this preview, we will go over what to expect from commercial aircraft OEMs.
Pontifications: 50×2
By Scott Hamilton
June 3, 2019, © Leeham News: Airbus and Embraer are 50 years old this year.
Airbus broke out the party hats last Wednesday. It arranged a formation flying of all its in-production aircraft, including the Beluga XL. It launched a website microsite with its history. A new book, Airbus, The First 50 Years, has been issued. A celebration is planned for the Paris Air Show.
Embraer’s anniversary is Aug. 19, so at this point, its party plans haven’t been solidified, but there will likely be something at the Paris Air Show. Embraer plans to have its new specially painted E195-E2 at the air show.
Mitsubish renaming, revamping MRJ, considers US production line: Nikkei Asia news
Updated, 3pm Brazil time, with Bombardier statement and additional response from Embraer.
May 29, 2019, © Leeham News, Sao Jose dos Campos, Brazil: Mitsubishi is changing the name of its MRJ jet, revamping the smallest version and considering a US production line, the Japanese news agency Nikkei Asia Review reported May 29 (Japan time).
The MRJ is now called SpaceJet.
The report comes on the final day of the Embraer Paris Air Show Media Days and just before the annual meeting of the International Air Transport Assn., which opens June 1 in Seoul.
It’s unknown if the timing of the leak is deliberate or coincidental.
Mitsubishi Aircraft Corp (MITAC) hinted at changes to the airplane at a press briefing in April at its new Renton (WA) US headquarters.
Timing and events appear to be converging to boost the new MITAC jet.