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Jan. 7, 2019, © Leeham News: As the airline, lessor and aerospace industries await Boeing’s decision whether to launch its New Midrange Airplane (NMA, aka 797), as of last month the company still hadn’t closed the business case.
The aerospace analyst from JP Morgan met last month with Boeing’s top executives in Chicago. CEO Dennis Muilenburg and CFO Greg Smith told Seth Seifman that the business case must stand alone, on a program P&L basis, and not rely on aftermarket MRO services through Boeing Global Services. A Boeing spokesman last week reaffirmed the business case is still a work in progress.
As LNC has written many times, the business case involves the usual cost, pricing, production, supply chain and related issues.
But one overarching issue is how bid the market demand is. In large part, this drives everything else.
And market demand continues to be a matter of debate.
Dec. 6, 2018, © Leeham News: The prospective Boeing 797 (NMA) must stand on its own business case and not rely on aftermarket contracts for a profitable program, reports investment bank JP Morgan.
JPM’s aerospace analyst Seth Seifman met with Boeing CEO Dennis Muilenburg, CFO Greg Smith and Boeing Commercial Airplanes VP-marketing Randy Tinseth Dec. 4. In a research note issued yesterday, Seifman reported that the business case for the New Midmarket Aircraft still hasn’t closed—but “if Boeing launches the NMA, it will be with the intention of earning a return on the aircraft itself that is comparable to existing programs; it will not be a plan to accept lower margins on the aircraft and make it up in the aftermarket.” (Emphasis in original.) Read more
Dec. 3, 2018, © Leeham News: Safran, the French company that is a 50% partner in CFM International, believes Boeing will launch the New Midmarket Airplane next year.
Safran held its investors day last Thursday.
In sideline conversation, one of those attending reports that Safran met recently with Boeing and is convinced the NMA is a “go.”
(Others, elsewhere, remain skeptical.)
Engine company responses for proposals are due this month to Boeing. CFM, Rolls-Royce and Pratt & Whitney are competing for the engine selection.
It’s believed Boeing would like a dual source (certainly airlines do), but in all likelihood, the odds-on favorite is that the NMA will have a sole source engine. The betting is that it will be CFM. Read more
By Bjorn Fehrm
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November 14, 2018, © Leeham News.: Last week we operated the future Boeing NMA from North American hubs. The aircraft would cover the North American market well but would have limitations when flying to South America. The coverage would be sensitive to where our hub would be, as would European coverage.
Now we finish the series by comparing the NMA to its main alternatives for range and operational economics.
Summary:
By Bjorn Fehrm
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November 8, 2018, © Leeham News.: Last week we flew a Boeing NMA from the Middle East. We found the aircraft would be well suited to serve this market.
Now we finish the coverage part of the series with checking how useful the NMA would be for North American based carriers.
By Bjorn Fehrm
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November 1, 2018, © Leeham News.: Last week we looked at how a Boeing NMA would function as a medium range airliner in the Asia-Pacific.
We now continue with flying the two aircraft variants from Middle East locations, exploring how large an area in Asia, Europe and Africa the aircraft would cover.
Summary:
Oct. 22, 2018, © Leeham News: I was in New York City last week for a series of meetings. Here’s what “the street” is talking about. I make no judgment calls about whether the thoughts are on target or not. Read more
By Bjorn Fehrm
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October 18, 2018, © Leeham News.: Last week we started an article series which analyzes how useful a Boeing NMA will be for medium to long-haul flights in different markets.
We first went through all the factors which will change the OEM’s nominal range to an operational range. Now we fly the NMA in one of its main markets and look how it fairs.
Summary:
Oct. 15, 2018, © Leeham News: “With your help, we will develop actionable plans to develop the supply chain.”
This was the leading message from the 5th Annual South Carolina Aerospace Conference and Expo, held Tuesday and Wednesday last week in Columbia (SC).
Conference officials also said they are “exploring a national aerospace coalition.”
SAVE THE DATESecond Annual Southeast Aerospace & Defence Conference Organized by Leeham Co. and Airfinance Journal April 14-16, 2019 Francis Marion Hotel Charleston, SC |
The South Carolina Council on Competitive/SC Aerospace already have a Letter of Intent with Washington State’s Aerospace Futures Alliance “for the purpose of advancing the aerospace industry across the US. The LOI will serve as the platform for exploring the creation of a national aerospace Coalition (Coalition) with the objective of strengthening and growing commercial aviation, space, and unmanned aerial systems in the US through a variety of activities.”