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.
Posted on July 23, 2018 by Scott Hamilton
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July 23, 2018, © Leeham News: First mover or not first mover, that is the question.
In a pre-Farnborough Air Show interview with another publication, Airbus Group CEO Tom Enders said Airbus had the advantage of being the “first mover” by acquiring majority control of the Bombardier C Series program.
But when it comes to responding to the prospective Boeing New Midmarket Airplane (NMA, or 797), Airbus officials say they are content to wait and watch, willing to let Boeing make the first move.
At the same time, Airbus is proceeding with studies to further extend the range of the A321neo, in the form of the A321XLR. The airplane would have a range of 4,500nm, up from 4,100nm, according to information widely leaked at the air show.
Related stories
Posted on July 23, 2018 by Scott Hamilton
July 23, 2018, © Leeham News, Farnborough: Digital technology, Blockchain, Artificial Intelligence, Digital Thread and Digital Factory technologies continue to gain momentum for aerospace production as companies throughout the supply chain strive to cut costs.
The consulting firm Accenture, in advance of the international air shows in Paris or Farnborough, identifies that it sees as the key stories that will come out of the show.
Accenture was on target for Farnborough.
Indeed, the show was low energy, with fewer orders than many past shows. The largest orders came from that ubiquitous company, Unidentified (though more than 200 airplanes are believed to be destined for China).
Some companies sent smaller delegations or didn’t come at all.
The headline out of United Technologies was about digital. It was just one example of the digital stories at Farnborough this year.
Posted on July 23, 2018 by Scott Hamilton
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.
BGS provides maintenance, repair and overhaul services; technical support; supply chain engineering; and passenger-to-freighter conversions, among other things.
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.
Posted on July 19, 2018 by Scott Hamilton
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.
Embraer’s E175 and E190 jets will compete with Mitsubishi’s MRJ70 and MRJ90 respectively. Boeing entered into a product and parts support agreement with Mitsubishi when the MRJ program was launched.
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.
Posted on July 18, 2018 by Scott Hamilton
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.
Posted on July 18, 2018 by Scott Hamilton
July 18, 2018 © Leeham News, Farnborough: Boeing’s P8-A Poseidon, the 737-based airplane best known for anti-submarine patrols, entered service with the US Navy six years ago.
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.
Posted on July 18, 2018 by Scott Hamilton
Analysis
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.
Posted on July 18, 2018 by Scott Hamilton
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.
Posted on July 17, 2018 by Scott Hamilton
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.
Boeing sells the 777-200LRF as a new freighter and third parties are gearing up for a 777-200ER P2F program, but up to now, there hasn’t been a -300ER P2F program contemplated.
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.
Posted on July 17, 2018 by Scott Hamilton