787 fuel burn, GEnx and how it relates to LEAP-1B

787 fuel burn: Aviation Week has this story about the early fuel burn results for the Boeing 787 beating expectations (which admittedly were tamped down because of the program difficulties). Some of this has been reported before. What caught our eye was the detail about the GEnx engine. Why? Because the CFM LEAP-1B derives much of its technology from the GEnx, including the higher temperatures fleetingly referenced in the AvWeek piece.

CFM is relying on high temperatures to achieve the fuel burn required by Boeing’s 737 MAX. This is hotly debated (pun intended) between CFM and Pratt & Whitney in the competition between the LEAP and the PW GTF.

CFM advocates that its hotter-running engine, equipped with advanced technology ceramics and other advanced materials, gives it the advantage over PW’s Geared Turbo Fan technology. PW argues that the hotter CFM engine will require more maintenance. Engineers that we ask generally agree that the hotter temperature approach will be a challenge for long-term maintenance but fall back on CFM’s sterling reputation of reliability as a measure of comfort. At the same time, these same engineers–who have no connection to either CFM or PW–like the GTF technology but want to see it proved in service.

Steven Udvar-Hazy said it best. It will be five to seven years after the engines are in service before the industry knows the reliability and performance of either engine’s advanced technology.

De-risking CSeries–but margin is gone

Note to Readers: In May, we attended the Pratt & Whitney media day, followed by the Airbus Innovation Days the same month and then the Boeing Pre-Farnborough Press Briefings over two days. This week we attended the Bombardier Farnborough Briefing. Boeing’s briefings are embargoed to July 5. We’re still digesting the PW event to tie information to news in the near future. Bombardier released its 20 year forecast, but we plan to tie that to information that was discussed at the embargoed Boeing briefings.

Bombardier made news with its statement that CSeries is on time. We dug a little deeper, however, and confirmed what had been hinted by Bombardier officials much earlier: that there is no margin left between now and the planned first flight by year-end.

At the same time, we received a run-down on some specific component areas that have been highlighted by analysts as risk areas. Here we go:

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Comparing Neo, Ceo, NG and MAX

As Airbus and Boeing battle for orders for the current generation A320 and 737 families and for the re-engined models, comparisons between the four sets of aircraft has been difficult to come by.

Furthermore, with Boeing continuing to evolve the MAX–not only with the engine specifications but also the airplane weights–ambiguity sometimes dominates.

Boeing continues to talk with customers about the definition of the MAX, with higher weights under study. Airbus is more advanced, but of course until flight testing confirms figures, nothing is certain.

Over time, information as emerged through Airbus, Boeing, Pratt & Whitney and other statements and information. Aspire Aviation (now Orient Insight) also has been a solid source of information. Our own data gathering has obtained some solid information as well.

From all these sources, we’ve put together the following table. The 737-7 MAX is the murkiest, with little apparent interest so far from the customer base. Taking known facts for the 8/9 MAX, we estimated some of the specifications for the 7 MAX.

What struck us on the NEO is that Airbus specifications for range are greater than has been previously revealed.

We consider the specifications of NEO and MAX still evolving until flight tests for all six sub-types prove design goals.

Click to enlarge and use zoom-in or magnifier to enlarge further for fine print.

 

AirInsight has exclusive detail about MRJ delay

Mitsubishi last month announced a delay of more than one year for the MRJ, but was rather vague about the reason.

AirInsight has the detail, following an interview at the Pratt & Whitney media day attended by officials of the Japanese company in town for the first flight of the MRJ’s PW GTF engine.

PW to dual-source neo engine manufacture

Pratt & Whitney will dual source manufacture of the A320neo GTF engine so there is no single point of failure, an official said at the PW Media Day in Hartford.

Tom Mayes, general manager of the company’s Middletown (CT) facility, also said that a decision hasn’t been made for a production location of the GTF version for the Mitsubishi MRJ. PW is assembling the Bombardier CSeries version at Montreal Mirabel Airport.

PW CEO David Hess said the GTF, offered on the A320neo, the CSeries, MRJ and the Irkut MC-21, will drive PW’s revenues from $12.7bn last year to twice that by 2020. Over the life of the program, Hess estimates the GTF will produce $325bn in revenues.

There currently is a backlog of more than 2,600 GTFs.

Ground and flight testing is validating promises about GTF performance, Hess told the international media: 16% better fuel consumption vs today’s engines, lower noise and on-target maintenance forecasts.

Odds and Ends: Boeing revises MAX winglet, adding 1.5% to efficiency

Update, 2:15 PM PDT: Airbus issued this response to the Boeing development:

“This kind of split-tip device was among the options we studied for the A320 Family, and we decided instead to advance with our Sharklet design as the most efficient.  Our Sharklet figures (3.5% improvement over the already-efficient A320 wing with wing-tip fences) are flight-test proven.”

Original Post:

Boeing today announced a revised winglet to add 1.5% in fuel efficiency for the 737 MAX, releasing a photo. See here. This will be on top of the advertised 10%12% fuel burn gain previously announced.

Separately, David Hess, CEO of Pratt & Whitney, told the PW media day “that as far as we know, the 737 MAX is not an opportunity for us,” citing the Boeing-CFM exclusivity agreement.

Update, 0900 PDT: Boeing held a tele-press conference to discuss the new “Boeing Advanced Technology Winglets,” (BATW) which it also called “dual feathered” winglets.

Boeing said this is an exclusive Boeing design and not derived from a similar design promoted by Aviation Partners. Key points:

  • Up to 1.5% lower fuel burn, depending on the length of mission;
  • The design used Computational Fluid Dynamics to design it, a process used from the 787/747-8 programs;
  • This is completely new technology, not having roots to the MD-11 which has a similar-looking wingtip arrangement;
  • The wingspan is increased by only “inches” compared with the NG;
  • The BATW is likely scalable to larger aircraft;
  • There are no current plans to make the BATW available on the NG, though this could change;
  • Although there will be some benefit to range, the BATW isn’t significant;
  • Boeing now claims 18% better all-in costs than the current Airbus A320 (based on figures as a starting point Airbus disputes);
  • This just about does it for aerodynamic changes to the 737; architectural changes should be nailed down in the third or fourth quarter; and
  • “Our major trades aerodynamically are done.”

Aviation Partners has a similar concept; the differences between Boeing and AP are evident.

Here’s how McDonnell Douglas executed a similar concept on the MD-11:

Odds and Ends: A320ceo production to end in 2018–PW; responds to 777X RFI

A320 Current Engine Option: The Airbus A320ceo production will end in 2018, according to David Hess, the president of Pratt & Whitney. Hess made the remarks today at the annual PW media day.

Hess said PW anticipates delivering an aggregate of 8,000 V2500 engines by the time the A320ceo winds down.

GTF to have >1m hours by year-end 2015: Hess also said the GTF will have accumulated more than 1m hours of tests and operations by the end of 2015 and more than 3m hours by the time the Boeing 737 MAX enters service in 4Q2017.

PW revenue will double from $12.7bn today: Hess said revenue will double by the end of 2020, driven by the GTF and aftermarket support. “The engines that we are developing today will define PW.”

Second GTF variant enters flight test: The Mitsubishi variant of the GTF made its first flight yesterday.

PW responds to Boeing RFI for 777X engine: in the 90,000-100,000 lb class. The benefits of GTF grow the larger the engine, says Hess.

Odds and Ends: ‘We’re happy with LEAP, confident it will meet target’

During the Boeing 1Q2012 earnings call, CEO Jim McNerney had this to say about the story that won’t die (that Boeing continues to look at the PW Geared Turbo Fan for the 737 MAX):

The gear turbo fan, the — yes. The — right now, as I think we’ve announced many, many times, we are working exclusively with CFM on the MAX, and we’re very happy with the development there. We’re confident that we can meet the targets that our customers need and that we’ve promised them. So that’s our plan going forward.

“Right now.” Was this a Freudian slip or an inconsequential choice of words?

Boeing likes American Airlines as stand-alone: McNerney also said Boeing prefers AA to emerge from bankruptcy as a stand-alone airline. This is no shock; the US Airways management is exclusively Airbus, and while American strayed from Boeing last year, it still placed a large order for 737NGs/737 MAXes.

McNerney talks about pricing: I think the summary on pricing is 777 steady, steady as she goes, capturing value, in many ways a uniquely positioned airplane today and significant productivity associated both with better conversion and with taking up rate. So the margin environment there, I would say, is good and favorable going forward. 37, all of the comments I just made on productivity apply. Significant productivity, both absorption kind of productivity due to increased rate as well as conversion productivity per unit. Slightly more aggressive pricing environment due to the introduction of the MAX and the NEO. So there’s launch customer kinds of pricing that have happened in a few cases. But I think at the end of the day, the — we anticipate about half of that market, which is a big number. And we see a pricing environment that’s not too different than the pricing environment we’ve had historically after we get through some of the launch customer — loss — launch customer pricing, which is part and parcel with our business.

[Source for all the quotations: Seeking Alpha Transcripts.]

We are hearing there essentially is a price war going on right now between Airbus and Boeing for single aisles, as Boeing attempts to stem the inroads and success by Airbus with the A320neo. In this case, we’re hearing Boeing is the aggressor (which follows, since it is playing catch-up).

Boeing won Delta Air Lines on the 737-900ER v A321 competition largely on price, we understand–bidding 10% lower than Airbus. We also believe price is likely the determining factor in the soon-to-be-completed United Airlines deal, where Boeing is widely reported to now be the favorite.

Another story that won’t die

We’ve recently tagged a few items “a story that won’t die.” Here is another one, the continuing analysis of the Pratt &
Whitney GTF for the Boeing 737 MAX.

Although Boeing’s Lauren Penning told The Puget Sound Business Journal there isn’t a “team” at Boeing working on this prospect, reports out of Aspire Aviation (now Orient Insight), Aeroturbopower, Airline Economics and last month’s ISTAT meeting continue to create buzz on this topic. The AirInsight piece was published in limited circulation two weeks ago.

ISTAT Part 3: Lessors Panel: GECAS, ILFC, AWAS, Air Lease Corp

The final panel at the ISTAT meeting is the much-anticipated lessors’ panel consisting of:

Jeff Knittle, president of CIT Aerospace, moderator;

Henri Courpron, Chairman of ILFC;

Ray Sisson, CEO of AWAS;

Norman Liu, CEO of GECAS; and

Steve Udvar-Hazy, CEO of Air Lease Corp.

Paraphrasing:

HC: All hell broke loose in Europe and upended aviation. Looking at consolidation in Europe. America now had a lot of stability and discipline, and we’ll see that happen in Europe. More fuel efficient aircraft will be required in Europe. I see a lot of opportunity and challenges to come in Europe.
NL: Asia has been by far our most active market, with 70% of our airplanes going there. You have to look at different parts of Asia–you can’t generalize. LCCs in Japan. Always something going on in China. SE Asia, good organic growth. Philippines and Indonesia very interesting. South Asia has had travails.
SUH: North America is going through an interesting time. Canada is a duopoly situation with new Asian and Middle Eastern carriers entering the market. The US is very mature having gone through a lot of trial and tribulation, more disciplined [than before]. After 9/11 there was a slow-down in US carriers taking new airplanes. We have a bow wave of a requirement for new fleeting.
RS: Latin America is under-appreciated. We see rapid growth there. By 2015 may be 17%, 20% of our fleet. There is a remarkable amount of demand and opportunities for lessors.