Leeham News and Analysis
There's more to real news than a news release.
Embraer 2Q2018 results: KC-390 problem turns quarter red.
By Bjorn Fehrm
July 31, 2018, ©. Leeham News: Embraer presented its 2Q2018 results today. The company posted a loss as the KC-390 program was reset financially after a prototype was damaged in ground testing during the quarter.
The Military division’s KC-390 problem came on top of forecasted weaker 2018 deliveries in both the Commercial and Business jet divisions. A $110m company profit was turned into a $17.7m loss for the quarter by a $127m KC-390 program charge.
Esterline’s Mason Products broadens its civilian use of unmanned systems controls
July 25, 2018, © Leeham News, Farnborough: A unit of Esterline Corp. that supplies parts for all commercial airliners, including the cockpit for the Embraer E-Jet E2 is creating an advanced control system for Unmanned Systems to keep the US armed service members out of harm’s way.
It’s appropriately called Harm’s Way Controllers, or HaWC®.
Esterline’s Mason Products company of Sylmar (CA) is also gearing up to sell this system to the civilian world, beginning with law enforcement, fire departments and other public agencies, says David Tessier, president. The HaWC is used on UAVs, robots that scout dangerous situations, helicopters (providing live situational awareness) and other applications.
Eventually, Tessier expects that HaWC will migrate to uses in environmental surveys, agriculture and inspections for such industries as oil and gas.
Leahy, Kirby headline “Plane Truths” conference in Chicago Sept. 11-12
July 24, 2018, © Leeham News: John Leahy, who retired in January after 33 years at Airbus, and Scott Kirby, president of United Airlines, headline the Leeham Co. and Airfinance Journal conference, Plane Truths: The Next 12 Months, Sept. 11-12 in Chicago.
This will be Leahy’s first conference appearance since he retired from Airbus, where he was COO-Customers.
Plane Truths: The Next 12 Months focuses only on the key issues coming up in the next year. Click here for more information.
Officials of American Airlines, Cargolux, HiFly, Rolls-Royce, Skyworks Capital, Collateral Verifications, Embraer and Bombardier are among those who will participate.
More than 1,000 orders, commitments from Farnborough
July 23, 2018: More than 1,000 new orders and commitments were announced at the Farnborough Air Show last week, a final tally shows.
The value was more than $128bn.
Credit Suisse issued its post-air show note today with a complete listing.
Orders announced previously but were listed as Unidentified until the air show were not included.
Farnborough: Good days for Embraer, 777F
July 18, 2018, © Leeham News, Farnborough: Embraer came roaring back in the first two days of the Farnborough Air Show after a slow year last year.
Boeing’s 777F saw a surge of orders and commitments and the 747-8F also landed some new commitments.
Through Tuesday, the Brazilian manufacturer announced orders, options and commitments for 265 members of the E1 and E2 EJet families.
These are:
Farnborough: E190-E2 “quietest single aisle airplane in production,” boasts CEO
July 15, 2018, © Leeham News, Farnborough: Embraer today revealed that the E190-E2 achieved better fuel burn than its target of 16%.
Flight tests showed fuel burn was 17.3% better than the E1, said Rodrigo de Souza, VP Marketing in a press briefing in advance of the official show opening tomorrow.
Wideroe Airlines, the launch operator of the E190-E2, now has three in service. De Souza said initial analysis of the operations show fuel burn is even better than the flight test results, but he declined to be specific until more operations are completed with more airplanes in a few months.
Embraer claims fuel burn is 10% better than the Airbus A220.
Wideroe’s small fleet has completed 800 flight hours at an average of seven hours a day. In eight out of 11 weeks, the fleet had 100% dispatch reliability, he said.
Pontifications: Final Farnborough forecast
Special Sunday edition of Pontifications.
By Scott Hamilton
July 15, 2018, © Leeham News: The Farnborough Air Show officially starts tomorrow, when airframers begin their public relations presentations and orders are announced.
As this is written on July 13, I’m doing a final update of what to expect from the show. It’s always risky making predictions. If they are overly optimistic or pessimistic, the predictor can look foolish.
But here goes.
LNC took its first forecast look June 25.
Airbus’ jetBlue A220 deal, first analysis
By Bjorn Fehrm
Subscription Required
Introduction
July 12, 2018, © Leeham News: The Airbus A220 won its first battle against Embraer’s E2 E-Jets, winning the order to replace 60 Embraer E190s at jetBlue. The airline held a telephone conference yesterday, presenting its choice of the A220 and explaining why it chose the A220.
JetBlue said in the call it was a close race. We analyze how close.
Summary:
- JetBlue showed the advantages the A220-300 would have against the incumbent E190. The expected improvement in costs of 25%-30% were identified.
- The airline wouldn’t be drawn on the difference between the A220-300 and Embraer’s E195-E2, the real competitor. Our performance model shows it’s a close race.
JetBlue orders 60 A220-300s in surprise timing
July 10, 2018, (c) Leeham News: JetBlue announced an order today for 60 Airbus A220-300s, nee Bombardier CS300s. The airline took options on 60 more.
The timing is a surprise–JetBlue previously said it would not be ready to order until toward the end of the year.
The order is a blow to Embraer, which has 60 E-190s in service with JBLU. The airline had orders for 20 more, but delivery had been deferred several times. Industry insiders told LNC the order could be canceled with little or no penalty.
The order is a blow to Embraer for the flip and for the loss of a potential E2 order. The E195-E2 seats slightly fewer passengers and has less range than the A220-300.
JetBlue has a large fleet of Airbus A320ceos, a few A321ceos and a large order book for neos.