E195-E2 will lead E-Jet sales, predicts N. American sales exec

Sept. 6, 2019, © Leeham Co., Nashville– Embraer is seeing interest from North American airlines in the E195-E2 despite a requirement that this would have to be operated by US mainline pilots or carriers without restrictions under some labor contract Scope Clauses, a top marketing official said yesterday.


 

Charlie Hills, VP of Sales and Marketing and based at the company’s US headquarters in Ft. Lauderdale, declined to name names of these airlines expressing interest in the E195-E2.

The remarks were made at the annual Regional Airlines Assoc. conference in Nashville.

But it is known that low-cost carriers Spirit Air, Frontier Airlines and even Southwest Airlines have looked at the airplane. None of these has a Scope Clause in labor contracts.

Legacy carrier United Airlines also has reviewed the airplane, but its level of interest is hard to gauge. It’s restricted by Scope by size, weight, seat count and the number of airplanes it can fly through its regional partners, so the E2 would have to fly mainline. Pilot wages would be a make-or-break issue.

The first E195-E2 will be delivered Sept. 12 to Brazil’s Azul Airlines.

Read more

Mitsubishi lands MOU for up to 100 SpaceJets from USA’s Mesa Air

Sept. 5, 2019, © Leeham News: Nashville—Mitsubishi Aircraft Corp (MITAC) won a large commitment for up to 100 of its new M100 SpaceJet from US regional carrier Mesa Airlines.

The Memorandum of Understanding was announced today at the Regional Airline Assn. annual US conference. The MOU is for 50 firm orders and purchase rights for 50 more. Mesa is a new MITAC customer. Deliveries begin in 2024. Entry into service is planned for 2023.

The M100 is compliant with the US pilot contract Scope Clauses, which (among other things) limit the weight of the airplane and seating configuration.

A Letter of Intent for 15 M100s was announced at the Paris Air Show. This customer has yet to be identified.

Read more

Pontifications: Embraer sees E175-E2 orders this year outside US

By Scott Hamilton

Aug. 26, 2019, © Leeham News: My column July 22 entitled Embraer counts on Boeing heft for E2 sales boost raised a few hackles in Sao Jose dos Campos, headquarters of Embraer.

It wasn’t meant to. Rather, slow sales of the E-Jet E2 this year caught the attention of more than a few in the market, so I thought putting some perspective on the issue was worthwhile.

After all, sales of the Bombardier C Series were slow between the announcement of selling 50.01% of the program and consummation of the deal nearly a year later.

Such is the case with E2 sales pending consummation of the Boeing-Embraer joint venture, which has a target date of closing by year end, I wrote.

Read more

14 new airplanes and derivatives see EIS through 2027

Subscription Required

July 15, 2019, © Leeham News: There are 14 new and derivative aircraft scheduled for entry into service (EIS) through 2027. This rises to 16 if Boeing launches the New Midmarket Aircraft (NMA).

But there are plenty of uncertainties around precise EIS hanging over some of these.

LNA sees entry into service for the Boeing 777X slipping to the first quarter of 2021.

LNA sees the Boeing 777X EIS slipping into early 2021. China’s C919 is now slated for a 2021 EIS, but development has been tricky and delays have been common. Russia’s MC-21 flight testing has been slow and international sanctions hang over this aircraft.

Mitsubishi’s MRJ90, now called the M90, is slated to enter service next year. It, too, has been plagued by delays. The redesigned MRJ70, the M100, moves from a 2021 EIS to a planned 2023 EIS—but given the MRJ90’s history of delays, the company has to persuade the industry no more slippages are likely.

Here is a rundown by year and aircraft of the EIS dates.

Read more

Mitsubishi, Bombardier reach agreement to acquire CRJ program

  • MHI to acquire CRJ program.
  • MHI will acquire the maintenance, support, refurbishment, marketing, and sales activities.
  • Deal worth $550m in cash, $200m in assumed liabilities, $180m in a securitization program.
  • Transaction to close first half 2020 subject to regulatory approval.

June 25, 2019, © Leeham News: Mitsubishi Heavy Industries and Bombardier today announced an agreement in which MHI will acquire the CRJ program, subject to customary shareholder and regulatory approvals. Closing is expected in the second half of next year.

The CRJ program includes the airplane, the global product support and sales force, manufacturing facilities and other assets. A CRJ installed customer base of 1,300 airplanes and more than 130 operators worldwide.

“Bombardier will continue to supply components and spare parts and will assemble the current CRJ backlog on behalf of MHI. CRJ production is expected to conclude in the first half of 2020, following the delivery of the current backlog of aircraft,” the companies said in a statement.

Read more

Pontifications: Heard around the Paris Air Show

June 24, 2019, © Leeham News: Heard around the Paris Air Show last week:

Airbus

Reporters long used to the entertaining and sometimes acerbic tongue former super-salesman John Leahy wondered how Christian Scherer would compare.

By Scott Hamilton

Scherer’s own sharp tongue began to emerge at the Airbus Innovation Days pre-air show briefing last month and got sharper at the executive round table the Friday before and on Day 1 of the international event.

On Day 2, Boeing and International Airlines Group (British Airways, et al) stunned the world journalists and Airbus with the LOI for 200 737 MAXes. On Thursday, Scherer expressed his displeasure.

The deal wasn’t unprecedented. In the 1990s, Boeing blindsided Leahy with an exclusive deal with American Airlines, followed by Delta and Continental airlines. “I was…pissed,” Leahy told LNA years later.

It seems Scherer is following in Leahy’s shoes in more ways than one.

The launch of the A321XLR was totally expected. The top question: does this kill the Boeing NMA? (LNA’s answer: Nope.)

Read more

magniX adds third customer for its electric engines

June 19, 2019, © Leeham News: AeroTEC and the electric motor airplane company magniX said today they have teams to retrofit the Cessna Grand Caravan with a 750 hp  powerplant, converting the single-engine PT-6-powered turbofan from “gas guzzling, emissions-creating engine,” says magniX’s CEO Roei Ganzarski.

The announcement was made during the third day of the Paris Air Show.

The Caravan carries about 10 passengers, a combination of passengers and cargo or serves as a cargoliner. FedEx uses the airplane extensively.

Read more

Paris Air Show, Day One: Mitsubishi makes case for “SpaceJet” market opportunity

By Judson Rollins

June 17, 2019, © Leeham News, Paris: Senior executives from Mitsubishi Aircraft Company (MITAC) and parent Mitsubishi Heavy Industries (MHI) described the long journey to the revamped “SpaceJet” M90 and M100 aircraft. They also commented on what market role the SpaceJet could potentially fulfil, as well as potential incremental improvements to the aircraft.

MHI chairman Shunichi Miyanaga said that market conditions and competitive landscape have changed in the company’s favor as the need for regional jet replacement has grown and competition has dwindled down to just a single player, Embraer.

Read more

Evolving the MRJ into the SpaceJet

June 13, 2019, © Leeham News: Mitsubishi Aircraft Corp. (MITAC)’s redesign of the MRJ70 and launch of the M100 SpaceJet in its place reflects a changing market environment when the MRJ program was launched more than a decade ago.

Then, MITAC—and Embraer—thought the restrictive US Scope Clause with the pilots’ unions of US major carriers would be relaxed by now.

MITAC launched the MRJ90 90-seat aircraft, to be followed by the MRJ70, a 70-seat airplane. Embraer launched the E175-E2 re-engined model of the popular E175.

Mitsubishi’s SpaceJet is the new brand for the revised MRI70 design, which has more passengers, a different wing and slightly longer fuselage than the original. Entry into service is planned for 2023. Source: Mitsubishi Aircraft Corp.

Neither complied with Scope as then defined, specifically the maximum takeoff weight of 86,000 lbs. Each exceeded this limit by about a ton.

(There are restrictions as to the number of seats and number of airplanes that can be operated by regional airline partners, too, but it’s the weight limit that’s the key issue here.)

Read more

Mitsubishi moves would make a lot of sense

By Bryan Corliss

Analysis

June 11, 2019, © Leeham News: © — A deal by Mitsubishi Heavy Industries to acquire the CRJ program from Bombardier would make abundant sense for Mitsubishi Aircraft Corp –  taking a struggling competitor off the board, acquiring hard-to-find human capital assets, and taking over an established North American American supplier network and a global product support system.

And recent unconfirmed reports that MITAC also is considering a North American final assembly site would make a lot of sense for a company that’s looking to cut production costs – and get closer to some likely key customers.

Yet while everyone in the industry is talking about the potential links between MITAC and the Montreal-based CRJ, nobody’s saying much about the company’s future in Moses Lake (WA). But overlooking Mitsubishi’s growth over the past two years there would be a mistake, because the company certainly is acting like it intends to plant roots there in the Eastern Washington farm country.

  • A North American assembly site would bring significant savings;
  • Mitsubishi and Bombardier already have close ties; and
  • Signs point to MITAC settling in at Moses Lake for the long haul.

Read more