Embraer Archives - Page 44 of 56 - Leeham News and Analysis

After-market support becoming key to winning engine orders

Maintenance and power-by-the-hour parts and support contracts are increasingly becoming the deciding factor in deciding which engines and which airplanes will be ordered—it’s no longer a matter of engine price or even operating costs, customers of Airbus and Boeing tell us.

Ten years ago, 30% of engine selection had power-by-the-hour (PBH) contracts attached to them. Today, 70% are connected, says one lessor that has Airbus and Boeing aircraft in its portfolio, and which has ordered new aircraft from each company.

“We’ve seen a huge move in maintenance contracts,” this lessor says.

10 Comments

Posted on August 25, 2014 by Scott Hamilton

Airbus, American Airlines, Boeing, Bombardier, CFM, Comac, CSeries, Embraer, GE Aviation, Irkut, Mitsubishi, Pratt & Whitney, Rolls-Royce

737 MAX, 737NG, 747-400, 767, 777, 777-200LR, 777-300ER, 777X, 787, A320ceo, A320NEO, A330ceo, A330neo, Airbus, American Airlines, Boeing, Bombardier, C919, CF34, CFM, CFM 56, Comac, CSeries, E-Jet, E-Jet E2, Embraer, Frontier Airlines, GE Aviation, GECAS, GEnx, GTF, Irkut, LEAP, Lufthansa Airlines, MC-21, Mitsubishi, MRJ, Pratt & Whitney, Republic Airways Holdings, Rolls-Royce

Half time 2014 for Boeing and Airbus

The major OEM’s have published their half time 2014 results and we can make an analysis of their half year results together with orders / deliveries and the state of their product lines. We compare Boeing and Airbus on the high end and in a follow up article Embraer and Bombardier on the low end. To make orders and deliveries comparable we include the month of July as the OEMs collected business to be announced at Farnborough mid July.

Boeing had a strong first half 2014. Boeing Commercial Airplanes (BCA) business is now past the initial problems on the 787 program and delivered 48 units January to June 2014 (8 per month) which is the same numbers as for the 777 program. The 737 is now at rate 40 per month with a first half total of 239 deliveries. The 747-8 is at rate 1 with only 6 deliveries and the 767 has stopped as a commercial program with only 1 delivery during the first half year. The commercial deliveries of 342 aircraft drove a 4% increase in company overall revenue and a 5% increase in earnings compared to first half 2013 (both non-GAAP i.e. the core business performance), this despite a Defense, Space and Security side which was down 5% on revenue and down 15% on earnings.

777-9X, 787-9 and 777-300ER in ANA colours

777-9X, 787-9 and 777-300ER in ANA colors

The troubled unit is Boeing Military Aircraft (BMA) which is struggling with its 767 tanker program (KC46A charged BMA with $187 million and BCA with $238 million due to increased development costs) and it is also fighting to not have its major military airplane program, the F18, stop 3 years from now from lack of orders. The military aircraft order drought contrasts with BCA where first half orders was 783 aircraft, mainly 737 but also 777X, where Emirates and Qatar confirmed their orders for 200 777X. Read more

150 Comments

Posted on August 7, 2014 by Bjorn Fehrm

air force tanker, Airbus, Boeing, Bombardier, EADS, Embraer, Uncategorized

737, 737 MAX, 737NG, 747-8, 777, 777-300ER, 777X, 787, A320, A320NEO, A330, A330neo, A350, A350-1000, A380, Airbus, Boeing, Bombardier, Embraer

GE analysis post Farnborough

Our wrap up of Farnborough would be incomplete without looking closer at the world’s leading engine supplier, GE Aviation, which together with partners (like SAFRAN in CFM joint venture) garnered more than $36 Billion in orders and commitments during the show. This figure was only significantly bettered by Airbus ($75 Billion) and it came close to Boeing’s $40 Billion. With such level of business the claim by GE Aviation CEO, David Joyce, that the Airbus A330neo engine business was not the right thing for GE as they have more business than then they know what to do with, was certainly no case of “sour grapes”. Read more

68 Comments

Posted on July 28, 2014 by Bjorn Fehrm

Airbus, Airlines, Boeing, Bombardier, CFM, Comac, CSeries, Embraer, Farnborough Air Show, GE Aviation, Leeham News and Comment, Pratt & Whitney, Rolls-Royce, Uncategorized

737 MAX, 777, 777-300ER, 777X, 787, A320NEO, A330neo, Airbus, Boeing, Bombardier, CFM, Embraer, Pratt & Whitney, Rolls-Royce

Bombardier woes go beyond CSeries

The news last week that Bombardier reorganized its business units, laid off another 1,800 employees and saw the retirement of Guy Hachey, president and CEO of the aerospace division, was viewed by some media and observers as an indictment of the CSeries program. While it’s certainly true that delays in the program weigh heavily on BBD, the problems don’t stop with CSeries.

Bombardier has 203 firm orders and 310 commitments for CSeries. This delivery stream doesn’t include any potential rescheduling as a result of the grounding of the Flight Test fleet from May as a result of the engine incident.

Slow sales of the CRJ, Q400 and business jets–as well as program development issues with a new corporate jet–all combined to drag down financial performance and bleed cash. Bombardier doesn’t have the balance sheet strength of Boeing or Airbus, nor strong sales of other airplane family members, to weather the challenges of new airplane development programs.

35 Comments

Posted on July 28, 2014 by Scott Hamilton

ATR, Bombardier, CSeries, Embraer, Mitsubishi, Sukhoi

ATR, ATR-72-600, Bombardier, CRJ, CSeries, E-175, E-Jet, Embraer, Ilyushin Finance Co, Mitsubishi, MRJ90, Q400, SSJ100, Sukhoi, Super Jet SSJ100

Odds and Ends: Some FAS leftovers–a big CSeries order?; EMB lands 60; and more

Farnborough Air Show leftovers:

Big CSeries order coming? Flight Global reports that lessor Macquarie Airfinance is about ready to sign a deal for 50 Bombardier CSeries. If true, this would be a major departure for the lessor, which historically hasn’t placed speculative orders–and it would be a major boost for Bombardier. The Flight Global report doesn’t say if this would be 50 firm or a combination of firm and options. BBD and MAF didn’t comment for Flight. We reached out to MAF and received this response:

“The Flightglobal release was concocted on a rumour and we don’t comment on rumours. You know how it is with lessors. We’re constantly considering every aircraft type that could provide us with value-adding opportunities.”

Bombardier has been selling the CSeries in small numbers, often to second or third tier, and even start-up carriers, a path Boeing took in the early days of the 737-200 program. Airbus relied heavily on lessors for early A320 orders. Boutique lessor LCI was a launch customer for the airplane, and Falko Regional Aircraft Leasing became a customer at FAS.

BBD now has 513 orders and commitments for CSeries.

65 Comments

Posted on July 20, 2014 by Scott Hamilton

Airbus, Bombardier, CSeries, Embraer, Farnborough Air Show, Pratt & Whitney

A320NEO, Airbus, Bombardier, CSeries, E-190, E-190E2, E-Jet, E-Jet E2, Embraer, Falko Regional Aircraft Leasing, GTF, LCI, Macquarie Airfinance, Pratt & Whitney

Farnborough Air Show, July 17: Orders summary, reflections of the show

Orders continued to trickle in as the Farnborough Air Show winds down (there could be others not listed here).

Airbus: Transaero, LOI for 12 A330neos and eight A330ceos; Hong Kong Aviation Capital firms up an order for 40 A320neo and 30 A321neo aircraft, announced at the Paris Air Show last year. Here is the Airbus wrap up press release.
Boeing: Summarizes its performance at FAS with this press release; 201 orders and commitments.

Items of interest:

Emirates Airlines says it could order 60-80 A380s if Airbus proceeds with a neo.

Overall reflections:

18 Comments

Posted on July 17, 2014 by Scott Hamilton

Airbus, ATR, Boeing, Bombardier, CFM, CSeries, Embraer, Farnborough Air Show, Mitsubishi, Pratt & Whitney

787-10, 787-8, 787-9, A330neo, Airbus, Boeing, CFM, CSeries, E-Jet, E-Jet E2, Embraer, Farnborough Air Show, Mitsubishi, MRJ90, Pratt & Whitney, UBS

Farnborough Air Show, July 16: MRJ program analysis

After a long drought of orders or even LOIs and MOUs, the Mitsubishi MRJ program saw some life at this Farnborough Air Show.

Sales of Japan’s first commercial airplane since the propeller-era’s YS-11 stalled with orders from SkyWest Airlines, Trans States Airlines and Japan’s ANA.

But at the FAS, Mitsubishi announced an MOU with Eastern Air Lines, a US start-up carrier, for up to 40 and a much smaller order for six from Air Mandalay.

The Eastern MOU can fairly come under scrutiny if for no other reason than the company is a start-up. Little is known about its financial fund raising and the business model–to begin as a charter airline and transition to a scheduled carrier in the highly competitive US Southeast–doesn’t instill a lot of confidence. EAL, named after the old trunk carrier that went out of business in 1991, has also ordered the Boeing 737-800 after initially announcing plans to begin service with the Airbus A320.

1 Comment

Posted on July 15, 2014 by Scott Hamilton

Bombardier, CSeries, Embraer, Farnborough Air Show, Mitsubishi, Pratt & Whitney

Bombardier, CS100, CSeries, E-170, E-190, E-195 E2, E-Jet, E-Jet E2, E175, Embraer, Farnborough Air Show, GTF, Mitsubishi, MRJ90, Pratt & Whitney, Pratt & Whitney GTF

Farnborough Air Show, July 15: Orders summary

Here are the orders and commitments announced today that we saw–there could be others we haven’t seen:

Airbus: Avolon (a lessor) ordered 15 A330neos; CIT Aerospace, MOU for 16 A330-900s, five A321neos; SMBC Aviation (lessor), 110 A320neo and five A320ceo aircraft; BOC Aviation, 36 Airbus A320ceo and seven A320neo family 17 of which will be fore the A321 family; AirAsiaX, MOU 50 A330-900s.
ATR: Air Lease Corp. purchased seven ATR-72-600s.
Boeing: Intrepid Aviation, 6+4 777-300ERs; Air Lease Corp, six 777-300ERs, 20 737-8s; CIT Aerospace, 10 787-9s.
Bombardier: One Q400 from Horizon Air; revealed an unidentied customer, Abu Dhabi Aviation, for two Q400s; LOI from Falcon Aviation for five Q400s.
CFM: Air Lease Corp. ordered the LEAP-1A for 20 A320neo family aircraft.
Embraer: Azul Air, LOI for 30+20 E-195 E2 (and becomes launch customer for this sub-type); Fuji’s Dream Airlines, 3+3 E-175s, a previously unidentified customer.
Mitsubishi: six MRJ90s from Air Mandalay.
Pratt & Whitney: SaudiGulf Airlines orders the V2500 to power four A320ceos; Philippine Airlines executes a previous LOI to a firm order for the GTF for 10 A320neos; BOC Aviation, V2500 for eight of the A320ceo family listed above; International Airlines Group (Vueling Airlines), V2500 for 30 A320ceo family.
Viking Air: Air Seychelles, two Twin Otters.

Items of note:

Airbus’ John Leahy says he expects a total of 100 A330neo orders from FAS;
BOC Aviation endorsed the launch of the A330neo but didn’t (yet) order any.
Boeing said its new 777X will have a cabin altitude of 6,000 ft, the same as the 787, larger windows than its 777 Classic and the A350; features borrowed from the 787 and many that go beyond the 787 passenger experience; and lower noise.
Bombardier launched its Q400 Combi, seating 50 passengers and carrying 8,200 lbs of cargo.
Steven Udvar-Hazy, CEO of Air Lease Corp, which has a large order book for the ATR-72-600, says, the Q400 is a good aircraft, but “much more expensive to operate” vs ATR. [However, that’s at the Q400’s high cruising speed. If it’s throttled back, the operating costs are said by BBD to be comparable.–Editor.]

11 Comments

Posted on July 15, 2014 by Scott Hamilton

Airbus, ATR, Boeing, Bombardier, CFM, Embraer, Mitsubishi, Pratt & Whitney

737-8, 777-300ER, 777X, A320ceo, A320NEO, A321NEO, A330-900neo, A330neo, Airbus, ATR-72, Boeing, Bombardier, CFM, GTF, LEAP-1A, Leap-1B, Mitsubishi, Mitsubishi MRJ, MRJ90, Pratt & Whitney, Pratt & Whitney GTF, Q400, Q400 Combi, Twin Otter, Viking Aircraft

Farnborough Air Show, July 15: WA State and Mitsubishi; PW GTF issue revealed, finally;

The news that Mitsubishi will stage flight testing for its new MRJ 90-seat jet program at Moses Lake (WA) is, parochially, good news. And it is exactly the type of non-industrial aerospace business that we’ve been advocating for Washington since our consulting days to the State Department of Commerce in 2010, and during our tenure as a member of the Board of Directors for the Pacific Northwest Aerospace Alliance (PNAA) for three years (2010-2013).

Washington, understandably, has been married to, and focused on, industrial aerospace. Boeing is here, of course. The supply based the supports Boeing has a huge footprint in Washington. But industrial business is highly capital-intensive, and winning this business is highly competitive.

3 Comments

Posted on July 15, 2014 by Scott Hamilton

Airbus, Boeing, Bombardier, CSeries, Embraer, Farnborough Air Show, Mitsubishi, Pratt & Whitney

777-9, 777X, Airbus, Beyond Boeing, Boeing, Bombardier, CSeries, Embraer, Farnborough Air Show, Gov. Christine Gregoire, Gov. Jay Inslee, GTF, Japan Air Lines, Jim McNerney, Mitsubishi, Mitsubishi MRJ, Pratt & Whitney, Pratt & Whitney GTF, Space Shuttle

Farnborough Air Show, July 15: E-Jet program analysis

Embraer Monday at the Farnborough Air Show revealed its new interior designed the for E-Jet E2, the re-engined and re-winged airplane scheduled to enter service in 2018 through 2020 in the 195, 190 and 175 subtypes each year.

We had the opportunity to preview the prototype for this interior in May while visiting EMB’s Florida offices, but the viewing was put off the record in anticipation of the FAS reveal. We were impressed.

The YouTube video linked above shows the most notable feature at about 1:45: the staggered first class section. For anyone who has flown the current generation E-Jet, you will know that first class is 1×2, a reduction in the 2×2 coach seating. We’ve always complained that the overhead bin on the one-seat side was reduced to a fairly useless size (we joked that it barely could accommodate a water bottle). The design for first now allows for 2×2 seating.

1 Comment

Posted on July 14, 2014 by Scott Hamilton

Airbus, Boeing, Bombardier, Embraer

737 MAX, 737NG, A320, A320NEO, Airbus, Boeing, Boeing SkyInterior, Bombardier, CSeries, E-Jet, E-Jet E1, E-Jet E2, Embraer, Farnborough Air Show, HeathTechna, Zodiac

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Leeham News and Analysis

There's more to real news than a news release.

Leeham News and Analysis

After-market support becoming key to winning engine orders

Half time 2014 for Boeing and Airbus

GE analysis post Farnborough

Bombardier woes go beyond CSeries

Odds and Ends: Some FAS leftovers–a big CSeries order?; EMB lands 60; and more

Farnborough Air Show, July 17: Orders summary, reflections of the show

Farnborough Air Show, July 16: MRJ program analysis

Farnborough Air Show, July 15: Orders summary

Farnborough Air Show, July 15: WA State and Mitsubishi; PW GTF issue revealed, finally;

Farnborough Air Show, July 15: E-Jet program analysis

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