May 15, 2017, © Leeham Co.: Welcome back, Commercial Aviation Report.
Today Leeham Co. is re-launching the publication that became the foundation of an international publishing and conference company and which ultimately led to the creation of Leeham Co. and Leeham News and Comment.
Commercial Aviation Report, or CAR for short, was launched Oct. 1, 1989, by Scott Hamilton, Chris Kjelgaard and Bernard Tilbury. The bi-weekly newsletter evolved into a magazine and later the creation of a monthly, Commercial Aviation Value Report.
It’s conference unit, Commercial Aviation Events, became one of the top aviation conference organizers. CAE created the first commercial aviation conference in Eastern Europe, after the fall of the Iron Curtain; and the first commercial aviation conference in China.
Oct. 5, 2015, © Leeham Co. Airbus appears to be closing in on a decision to boost the production rate of the A320 family to 63/mo by the end of the decade, a new report from Bernstein Research Group says.
Boeing is sure to follow with rate boosts for the 737, Bernstein writes in an Oct. 1 note.
Leeham Co. has been predicting these moves all year, and in LNC’s interview with Airbus Group CEO Tom Enders last month at the opening of the A320 Final Assembly Line (FAL) in Mobile (AL), Enders indicated the decision to boost rates would be made by the end of the year.
By Bjorn Fehrm
Over the last weeks we have looked at Boeing’s 757 replacement possibilities on its long and thin network niche, including a ground breaking launch interview for the A321neoLR with Airbus Head of Strategy and Marketing, Kiran Rao. In the series we have seen that the A321neo has the potential to replace the 757-200 on long and thin international routes. Boeing’s equivalent single aisle entry, 737 MAX 9, has problems to extend its range over 3,600nm. It is too limited in the weight increase necessary to cover the longer range.
Many have asked how the less- restricted Boeing 737 MAX 8 would fare, suitably equipped with the necessary extra tanks. This is the subject of this week’s sequel on the theme long and thin. At the same time we look at Airbus entry in this segment, the A320neo, to see how it stacks up to the 737 MAX 8, both in their normal 1,000 to 2,000nm operation and then also in a long and thin scenario.
Let’s first summarize what we found so far in our four articles around the Boeing 757 and its alternatives:
By Bjorn Fehrm
As part of our premium content we provide a briefer form of our airliner performance analysis than we provide to our consulting clients. As we present this material, we presume a lot of knowledge on the part of the reader on the definitions we use and how these are employed. We thought it would be appropriate to give an easy-to-digest clinic on some of these definitions and concepts that we are using. Aired at the same time when we run our analysis series, we thereby present the background to our different analysis steps and some of the key parameters that influence these.
We will provide these articles as free content to make them available to a broader audience. To make them more interesting and easy to digest we refrain from using formulas as much as possible, instead we illustrate our findings with real values from a modern aircraft , for that we have chosen the most common of them all, the Boeing 737.
We will fly this aircraft in the latest MAX 8 version on a typical short haul mission of 2.5 block hours covering a distance of 1,000 nautical miles. Starting from the cruise we will explain the factors that determine the performance of the aircraft and how we can estimate their influence. As we present the real values for the performance for the aircraft, we can also give the background to the different characteristics that contribute to the overall efficiency of the aircraft. Read more
By Bjorn Fehrm
Part 3 of 3
In Part 2 of our three-part 757 Replacement analysis, we took a close look at Airbus’ new 97 tonne take-off weight A321neo, revealed in a world exclusive by Leeham News and Comment October 21. We analyzed the A321neoLR’s capabilities and limitations when compared to Boeing 757-200W and we saw that it could do the international flights that the 757-200 does with about 25% better efficiency. In this final Part 3, we will now compare the 757 and A321neoLR against what can be Boeing’s reaction, a clean sheet New Single Aisle, NSA, or New Light Twin Aisle, (NLT). First the conclusions from Part 2:
For Part 3 we can summarize:
While Airbus and Boeing slug it out in the competition for the duopoly and Bombardier struggles to gain respect as an emerging mainline jetliner producer, Embraer continues and refines its strategy in the smaller-end of the jet market with its E-Jets, E-Jet “Plus” (our term) and the E-Jet E-2.
Embraer is broadening its offering from a maximum of 122 seats to a maximum of 132 and dropping its low-end E-170 from future variants. This brings the EMB family to 90-132 seats, following the decision to undertake an extreme makeover of the current E-175/190/195 line by adapting the Pratt & Whitney P1000 Geared Turbo Fan engine to a new wing design and upgrading a variety of systems in the E-Jet E2.
Source: Embraer. Reprinted with permission.
Outlook for 2012: We’ve historically provided our outlook for the coming year by taking a look at the major airframe and engine OEMs. This year, our outlook is combined with that of Ernie Arvai and Addison Schonland over at AirInsight, which also looks at the Highs and Lows of 2011.
Boeing: The Seattle Times has a good year-end wrap up/2012 Outlook.
Boeing 787: Boeing did not make its target of delivering 5-7 787s in 2011. It only delivered two. Update, 9:45am: Blogger Airline Reporter says Boeing and ANA signed the paperwork on Dec. 30 for a third 787, arguably making this a third “delivery” but ANA won’t actually take possession until Jan. 4. We had asked Boeing Jan. 1 if any more deliveries had taken place in 2011 and a Boeing spokeswoman said Boeing would not confirm deliveries until the Jan. 5 update.
Bombardier: In part 3 of its look at 2012, AirInsight has a podcast with Bombardier talking about the CSeries.
Cathay Pacific: Aspire Aviation has an in-depth look at Cathay Pacific, including future fleet acquisition prospects. Daniel Tsang believes CX favors the Boeing 747-8I over the Airbus A380 at this point in evaluation, largely on great cargo capacity and a preference for frequency over passenger capacity.
Wichita (KS): December was a bad month for the aviation center in Wichita (KS). First came the news that Boeing may not finish the KC-46A tanker there and that the entire Boeing Wichita center may close. Then Hawker Beechcraft lost a USAF contract to Brazil’s Embraer. In fact, Hawker was excluded from bidding and is suing.
Leeham News: Our readership was up 62% in 2011 over 2010. Thanks to you all.
Selling the 707: Fortune magazine reprinted this article from 1957 of the Selling of the 707. Pretty good return to nostalgia.
From Twitter: .
@Boeing CFO James Bell to retire next April. Corporate Controller Greg Smith to replace him.
Republic Airways Holdings is sliding deeper into financial trouble as a result of Frontier Airlines. Aviation Week has a detailed story that reports the Embraer E190 order will be deferred and casts doubts about the viability of the Airbus A320neo and Bombardier CSeries orders. RC has an earnings call November 8.
Airline Books: Arcadia Publishing, which is largely known for specialty books about local cities, towns and topics throughout the US, has a number of books about airlines. We were at the Museum of Flight at Boeing Field and discovered this line of books, which is new to us. We picked up books on Northwest Airlines and Pan Am but there are a number of others here.
Here are our thoughts and observations from Day 1 of the Aircraft Finance conference in Geneva, Switzerland: