Leeham News and Analysis
There's more to real news than a news release.
Green aircraft builder may need infusion of greenbacks
Subscription Required
By Bryan Corliss
April 4, 2019, © Leeham News: While one Western Washington electric aircraft company is charging forward with battery-powered flight, another may be encountering headwinds.
Zunum, which has announced plans to put a hybrid-electric-powered aircraft into the air before the year’s end, may need a cash infusion if it’s to stick to that time line.
Unlike MagniX – which announced March 26 a deal with Vancouver’s Harbour Air to start putting electric motors into the airline’s existing fleet of seaplanes – Bothell-based Zunum is pursuing a clean-sheet aircraft design.
Summary
- Electric plane builder Zunum plans to fly hybrid test aircraft this year.
- The company says it plans to announce a manufacturing site — or maybe an airframing partner — in 2020.
- Reports say the company needs more investor cash to avoid schedule slips.
Read more
Returning the MAX to service
Subscription Required
Introduction
April 1, 2019, © Leeham News: Returning the Boeing 737 MAX to services following its grounding should reasonably be a straight-forward affair, if past groundings were examples.
But, to mix a metaphor, there are plenty of unchartered waters with this grounding that stand ready to complicate matters.
Bloomberg reported Saturday that Europe’s FAA equivalent, EASA, skipped last week’s Boeing meeting of 200 pilots and regulators.
Summary:
- US FAA is no longer the leader or gold standard.
- EASA, Transport Canada want their own reviews.
- China, the first to ground the MAX, also suspended plane-by-plane certification.
MCAS upgrade requires half-hour of pilot training
Subscription Required
Introduction
March 28, 2019, © Leeham News: Boeing 737 MAX pilots learning about the revised software upgrade to the Maneuvering Characteristics Augmentation System (MCAS) will need a half hour of computer-based training (CBT), the company told the media yesterday in a briefing.
Pilots of the 737 NG who have not yet made the transition to the MAX also have to be trained on the MCAS now. Boeing did not specify if this will take longer than those already trained on the MAX.
- Related article: Boeing presents MCAS software fix details
Summary
- No estimate to MAX return to service.
- Waiting for investigations of the crashes.
- More information for pilots.
Canada’s Harbour Air to fit electric engines on its plane
Subscription Required
Introduction
By Bryan Corliss
March 26, 2019, © Leeham News: A Seattle-area engine manufacturer today will announce a significant step toward actually getting an electric-powered passenger aircraft off the ground.
The company, MagniX, is set to announce a partnership with Canada’s Harbour Air to retrofit its fleet of 33 piston-powered de Havilland Beavers, Otters and Twin Otters with 750 hp electric engines.
Harbour Air will equip its fleet of 33 aircraft, including the de Havilland Twin Otter, with electric engines. Source: harbour Air.
The first electric-powered flight – in a six-passenger Beaver – will take place before the end of 2019, according to MagniX CEO Roei Ganzarski. MagniX and the Vancouver-based airline plan to pursue a supplemental type certificate for the planes, with a goal of 2021 for EIS.
Modifications will take place at a plant in Vancouver, a spokeswoman said.
Summary
- Overcoming skepticism.
- Tested engine, proven airframe.
- Short-haul routes.
Congestion costs billions, but airlines show little concern
Subscription required
Introduction
March 21, 2019, © Leeham News: There are many estimates for how much flight delays and disruptions cost airlines and passengers. But everyone agrees the total number is big—possibly more than $1bn for each major US airline each year.
In 2017, delays cost airlines and passengers $26.6bn, according to the FAA/Nextor estimate. That total includes direct cost to airlines and travelers, lost demand and indirect costs. Congestion at the three major airports serving New York City directly cost air carriers an estimated $834m a year, according to a 2009 report.
Chicago O’Hare Airport at 7pm, Sunday, March 17, 2019. Source: FlightRadar24.
Yet despite the high cost, flight on-time statistics are basically where they were 20 years ago. Moreover, there are no discernible positive trends in the data collected by the U.S. Bureau of Transportation Statistics.
Of course, airlines take steps to decrease or limit flight delays, and, of course, some things, such as severe weather, are out of anyone’s control.
At the same time, airlines have shown little interest in pushing for low-cost solutions to decreasing system-wide congestion. There is no clear or easy explanations for carrier’s lack of motivation. However, interviews with current and former airline executives, researchers and others highlighted a few key factors.
Summary
- Reducing air traffic congestion is a huge, hairy beast of a problem.
- That complexity makes it difficult to see system-based approaches.
- Airlines are concerned that competitors could benefit more from reduced congestion.
Cutting A220 costs is an ‘ongoing exercise’ for Airbus
Subscription required
Introduction
March 14, 2019, © Leeham News: Airbus’ effort to slash supply costs for A220 production is “an ongoing exercise at this point,” Joe Marcheschi, Airbus’ head of procurement in North America, told LNA in an interview last month.
The A220-300 for JetBlue will be assembled at the Airbus plant in Mobile (AL). Airbus rendering.
“There are no specific, let’s say, achievements yet,” he said. “We are working closely with our supply chain.”
It takes time to squeeze cost out of the supply chain, he said. “We only took over July 1. That’s when we got full knowledge of the existing contracts.”
In January, Philippe Balducchi, head of the Airbus-led venture overseeing production, told journalists that the aerospace giant aims to realize “significant double-digit” percentage cost reduction. He indicated that most of the savings likely would come from the supply chain, according to news reports.
“Look, the airplane is absolutely fantastic—it just costs a lot of money,” Marcheschi said. “Now, we have to find a way to reduce the cost.”
Summary
- Airbus is working to slash supply chain costs on A220 program, but no announcements yet.
- The European plane maker wants to offer commercial MRO services in North America.
Digital transformation critical to Boeing
Subscription Required
Introduction
March 11, 2019, © Leeham News: Digital transformation is critical to Boeing’s evolving business model. But suppliers are in no rush to hand over their data to Boeing.
For more than a year, the airplane maker has been moving toward a new system for managing inventory and parts. As LNA noted last year, Boeing 
Commercial Airplanes’ management expects the new system, known as SAP, will streamline parts delivery and cut costs for Boeing and suppliers. BCA has been pushing suppliers for more transparency of their own supply chains and production flows. It likely would not surprise many industry watchers if BCA moves to integrate its suppliers into SAP in some fashion down the road.
Managers and executives at several suppliers told LNA that they expect Boeing to push for greater access to their companies’ internal data in coming years. They expressed ambivalence between potential efficiency gains and loss of autonomy.
Boeing’s 777X analyzed, Part 4
By Bjorn Fehrm
Subscription Required
Introduction
March 07, 2019, © Leeham News: In our analysis series about the Boeing 777X, it’s time to look at the performance of the 777-9 and 777-8 and compared them to their main competitor, the Airbus A350-1000.
Figure 1. First flight test Boeing 777-9 with the GE9X engines mounted. Official roll-out is set for March 13th. Source: Boeing.
Summary:
- The 777-9 is a larger and heavier aircraft than the A350-1000. Its wide wing and efficient engines compensate the added weight when compared with the A350-1000. Both have best-in-class fuel efficiencies.
- The “cut and shut” 777-8 has the same capacity as the A350-1000. Here the wings, engines and empennage from the 777-9 give it Ultra Long Haul capabilities. In normal route use, this capability weighs on its fuel efficiency.
Rolls cites timing, analysts cite poor financial condition for NMA withdrawal
Subscription Required
Introduction
March 4, 2019, © Leeham News: Rolls-Royce last week announced it had withdrawn from competition for the Boeing NMA engine provider, citing a 
mismatch in timing between its Ultra Fan being ready and Boeing’s desired entry into service.
Warren East, the RR CEO, glossed over other reasons, but they were there: the program making commercial sense and the impact of the Trent 1000 engine challenges.
Aerospace analysts interviewed by LNA and whose research notes were provided have other reasons.
Summary
- After dissecting RR’s financial statements, with special charges, accounting changes and Free Cash Flow analysis, some analysts concluded the company simply doesn’t have the money to develop the engine for the NMA.
- Although CEO East glossed over the Trent 1000 issues, some analysts feel this was more important than let on.
- CFM, according to one analyst (and many observers), believes it is the favorite for the NMA engine selection, so RR bowed out.
Shareholders OK Boeing-Embraer JV; court, anti-trust approvals next
Subscription Required
Introduction
Feb. 28, 2019, © Leeham News: Embraer’s shareholders this week approved the joint venture between their company and Boeing, moving another step closer to completion expected by the end of this year.
Boeing will own 80% of the new company and have governance control; Embraer will own 20%.
The shareholders’ action comes after a Brazilian court for the fourth or fifth time enjoined the companies from proceeding with negotiations. Higher courts overturned each previous injunction and will likely do so again.
Global regulatory anti-trust reviews are the step. All decisions are expected by year end.
The KC-390 is the largest plane designed and produced by Embraer. Source: Embraer.
John Slattery, CEO of Embraer Commercial Aviation, gave this take on the pending joint venture in his column on LinkedIn.
Summary
- “NewCo” will be based in Brazil and be responsible for Boeing’s commercial airplanes up to 150 seats.
- A second joint venture is planned for military development.
- The KC-390 is a focus of the second JV.