July 19, 2018, © Leeham Co.: Boeing Global Services picked up more than $2bn in new contracts at the Farnborough Air Show, a good boost as it moves into its second year as a stand-alone business unit within The Boeing Co.
Stan Deal, CEO of BGS, said 2017’s revenues were $14.5bn and $16.5bn of orders. Last year was the first BGS financial data was segmented from consolidated earnings data. This represented a 6.5% growth over 2016.
In the first quarter this year, revenue grew again, “pointing to a trajectory of growth of 8.8% year-over-year,” Deal said.
Second quarter numbers will be released next week.
BGS combined Boeing Commercial Aviation Services and a similar unit in its defense unit.
July 18, 2018, © Leeham News, Farnborough: Mitsubishi’s MRJ will be supported even if Boeing and Embraer complete a deal to form a new company in which Boeing is an 80% shareholder.
Stan Deal, CEO of Boeing Global Services, said in an interview with LNC that despite the competition, BGS will honor the Boeing commitment to Mitsubishi.
BGS already supports Airbus aircraft, which of course fiercely compete with Boeing.
July 18, 2018, (c) Airfinance Journal: Firm orders had largely dried up by day three of Farnborough 2018, although Boeing could celebrate some big commitments for its Max narrowbody from Vietjet and four undisclosed customers. Elsewhere Bombardier won its first order of the show after Uganda’s flag carrier signed for CRJ900s.
Since then, Australia, New Zealand, the UK and Norway are among the countries ordering the airplane and the first Navy P8 entered heavy maintenance here.
Boeing produces the P8 at a 1.5/mo rate, which is full rate.
The Navy ordered 117 P8s, but there is potential to order more.
July 18, 2018, © Leeham News, Farnborough: The biggest, longest-running story at this year’s Farnborough Air Show is about an airplane that doesn’t exist: the prospective Boeing New Midmarket Aircraft (NMA or 797).
And the underlying story that’s emerging from the buzz on the sidelines and interviews with key observers and industry participants is that Boeing’s business case for the airplane appears to be getting weaker, not stronger.
July 17, 2018 (c) Airfinance Journal: Day two of the Farnborough air show saw David Neeleman’s new US airline commitment for 60 Airbus A220-300 aircraft, a story that was first revealed by Airfinance Journal on 11 June. Embraer announced commitments for 270 aircraft from six customers.
July 17, 2018, © Leeham News, Farnborough: Boeing Global Services is studying the world’s first passenger-to-freighter conversion program for the 777-300ER, BGS president Stan Deal revealed to LNC today at the Farnborough Air Show.
The -300ERF would be targeted for the volumetric cargo market as opposed to the density-based market that is served by the 777F.
Deal said BGS hopes to conclude its study by fall. A potential conversion cost is not yet known.
By Alex Derber
July 16, 2018, (c) Airfinance Journal: Day One of Farnborough 2018 belonged firmly to Boeing in terms of firm orders, although the US manufacturer saved up many of its largest announcements from deals done earlier in the year. Airbus, meanwhile, almost achieved parity if one includes softer commitments from airlines and lessors, although there were some speculative deals, notably a memorandum of understanding (MoU) for 17 A350s from Starlux, a Taiwanese start-up not yet in business.
Other noteworthy deals included lessor Jackson Square Aviation’s first new aircraft order and United decision to buy E175s rather than the newer E2 variant.
July 16, 2018, © Leeham News: Farnborough: Boeing has returned to considering a metal fuselage for the New Midmarket Aircraft as an alternative to the ovoid-based composite design that has been the focus for the past two-three years, multiple sources tell LNC.
Boeing hasn’t been able to narrow the cost of the composite design to a point where selling the aircraft in the $70m-range is feasible, sources say.
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.