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By the Leeham News Team
Dec. 13, 2021, © Leeham News: Attempting a forecast for the new year historically has been reasonably easy. One just started with the stability of the current years, and maybe the previous one or two years, and looked forward to next year.
Until the Boeing 737 MAX grounding, COVID-19 pandemic, and the Boeing 787 suspension of deliveries.
These events upended everything. Boeing’s outlook for 2020 depended on what happened to return the MAX to service. The grounding, initially expected by many to be measured in months, ultimately was measured in years.
The 2020 outlook for the rest of the aircraft manufacturers blew up that March with the global pandemic.
Then, in October 2020, Boeing suspended deliveries of the 787, exacerbating its cash flow crunch.
Commercial aviation began to recover some in late 2020. Airbus, which reduced but didn’t suspend deliveries throughout 2020, saw signs of hope for the narrowbody market—less so for widebody airplanes.
There is a lot of uncertainty, however, that makes looking even one year ahead challenging.
By the Leeham News Staff
Nov. 30, 2021, © Leeham News: Plans to resume deliveries of the Boeing 787—halted since October 2020—appear to be slipping again.
Customers tell LNA that deliveries may not resume until April, a slip of one or two months from the previous unofficial timeline. Boeing hasn’t announced any timeline, deferring to the Federal Aviation Administration’s review of plans to fix issues related to composite delamination and fuselage section mating.
“As we have previously shared, we are completing comprehensive inspections and associated rework across 787 production and within the supply chain, while holding detailed, transparent discussions with the FAA, suppliers, and our customers,” a Boeing spokesperson wrote LNA in an email.
“Work continues in our production facility and rates will continue to be dynamic as we focus on eliminating traveled work and prioritize resources to support our inspection and rework efforts. We are taking the time needed to ensure the highest levels of quality, and while these efforts will continue to impact deliveries, we’re confident this is the right approach to drive stability and first-time quality across our operations and to position the program for the long term as market demand recovers. None of the issues have been determined to present a safety of flight concern with respect to the active in-service fleet.”
Related Article
The first report appeared Oct. 18, 2021.
Oct. 25, 2021, © Leeham News: Embraer appears marching toward launching a new turboprop aircraft next year with a targeted 2027 entry into service.
The timing will be determined by the engine. Pratt & Whitney, GE Aviation and Rolls-Royce have development programs. PW and GE are farthest along. PW is thought to have the best chance of winning Embraer’s business. (Pratt & Whitney supplies the engines for the E2 jet. GE supplied the engines for the E1.)
In an interview at the IATA AGM Oct. 3-5 in Boston, Arjan Meijer, the president of Embraer Commercial Aviation, said the competition remains open today.
Oct. 18, 2021, © Leeham News: It was October 2015 when Bjorn Fehrm and I first went to Sao Jose de Campos to visit Embraer’s headquarters. Among the topics discussed then was the prospect of developing a new turboprop airliner. The E2 program was well underway and one day, Embraer’s engineers would need something else to do.
At the time, officials weren’t enthusiastic about a turboprop. The cost to develop one was estimated to be about $2.5bn, about the same as the E2, they said. But the market was much smaller, only about 2,000-2,400 airplanes over 20 years.
Much has changed in six years. The E2 program is all but finished, with only the E175-E2 left. Periodic performance improvement packages will be developed. The proposed joint venture with Boeing, in which Embraer’s engineers were going to play a big role in two new airplane programs, is dead.
EcoAviation demands have risen to the forefront. Bombardier exited the Q400 turboprop business and the buyer, Longview Aviation Capital, “suspended” production during the COVID pandemic. Few believe it will be restarted. Airbus, which owns 50% of ATR, made hydrogen power a top priority. ATR may be the vehicle through which initial development is sold as a turboprop.
Aug. 23, 2021, © Leeham News: Could Embraer’s new turboprop design have formed the basis for the 100-150 seat Boeing single-aisle aircraft had the joint venture proceeded?
A former Boeing engineer thinks it might have.
The aft-mounted, open rotor engines and the ability to switch later to hydrogen fuel represent the kind of advances Boeing could use to restore its leadership role in commercial aviation.
Under the proposed JV, which Boeing ash-canned in April 2020, Embraer would have been responsible for development of the 100-150 seat aircraft Boeing needs to replace the 737-7 and 737-8.
By Bjorn Fehrm
August 13, 2021, ©. Leeham News: Embraer presented strong 2Q2021 results today. It could deliver a quarterly net profit of $44m (-$119m), the first positive quarter since 1Q2018. Revenue for the quarter was up 110% at $1,131m versus $537m in 2Q2020.
The company delivered 14 airliners and 20 biz jets, up from 4 and 13 a year ago. The company now delivered guidance for 2021, with deliveries at 45-50 regional jets and 90-95 biz jets. Revenue lands at $4.0bn-$4.5bn with free cash flow at break-even to $150m.
July 12, 2021, © Leeham News: With Washington State and the US open for business following nearly 18 months of COVID-pandemic shut-down, there is a lot of optimism in commercial aviation.
In the US, airline passenger traffic headcounts are matching or exceeding pre-pandemic TSA screening numbers. Airlines are placing orders with Airbus, Boeing and even Embraer in slowly increasing frequency.
The supply chain to these three OEMs looks forward to a return to previous production rates.
It’s great to see and even feel this optimism. But the recovery will nevertheless be a slow if steady incline.
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By Judson Rollins
May 13, 2021, © Leeham News: Aviation data provider Cirium said last week that just under 7,850 commercial aircraft were still in storage, down from 8,684 at the beginning of the year and a peak of 16,522 at the apex of the COVID-19 crisis last April.
Although there was an initial spike in aircraft retirements in March and April 2020, the total number has stayed in line with historical norms to date. However, order books for most types have stagnated or even gone backward since the start of the pandemic.
A few trends are becoming clear: larger single-aisles are thriving, larger twin-aisles are disappearing, and sub-100-seat orders are flatlining. Not surprisingly, older-generation aircraft are disappearing at an accelerated rate.