Leeham News and Analysis
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Leeham News and Analysis
- Bjorn’s Corner: New engine development. Part 23. Development risks. September 6, 2024
- If a strike occurs, here’s what Boeing can do September 5, 2024
- China banks on C919, but numbers say it still needs Boeing September 2, 2024
- Bjorn’s Corner: New engine development. Part 22. High Turbine technologies. August 30, 2024
- The A330 for medium haul or twice the frequency with A321XLR? Part 1 August 29, 2024
Redefining the 757 replacement: Requirement for the 225/5000 Sector, Part 2.
By Bjorn Fehrm
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Introduction
01 March 2015, c. Leeham Co: In the first part of the article series around the need for a more capable solution for 180-240 seats and 5,000 nautical miles, we went through the derivative aircraft that Boeing could field as competitors to Airbus A321LR and showed why none of them are effective. We also established the market requirements and the likely market size for aircraft that shall cover this segment and the required efficiency and overall cost improvement needed.
We will now look at different solutions to the requirements, first by analyzing what key characteristics does single and dual aisle aircraft have and what consequences will they have for the aircraft’s efficiency parameters like weight, size and drag. Once we have these characteristics we can design adapted aircraft types and calculate their economics such as fuel costs and other costs and we can also establish their operational ground handling times and thereby the consequences single or dual aisle will have on the aircraft utilization.
Having developed and presented these facts it will be possible to forecast what will be the most likely results of Boeing’s New Airplane Study, NAS that we presented 2 November last year. Boeing now uses the name, Middle of the Market (MOM) in place of the NAS.
Summary:
Our second article shows:
- Drag and weight per seat for today’s short and mid-range aircraft vary significantly between single and dual aisle aircraft
- There is a strong correlation between aircraft wetted area and aircraft weight.
- Dual aisle designs in the 180-240 seat segment will have to be highly optimized to be able to compete with single aisle, if at all.
Boeing’s dedicated freighters views an improving market
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By Scott Hamilton and Bjorn Fehrm
Introduction
Feb. 22, 2015: An improving global freight market gives Boeing hope that air cargo demand will support the production of two new main-deck freighters a month for years to come. Boeing is struggling to sell 747-8Fs to keep the 747 line alive and needs to sell the 777F to support its goal of maintaining the current 777 production rate of 100/yr through the transition in 2020 to the new 777X.
Randy Tinseth, VP Marketing for Boeing included the projection as a passing reference in remarks Feb. 11 to the 14th Annual Conference of the Pacific Northwest Aerospace Alliance in Lynnwood (WA). The following week we spoke at length with Tom Crabtree, Boeing’s Regional Director, Airline Market Analysis, Marketing & Business Development, about the long-suffering global cargo market and Boeing’s forecast for recovery.
Summary
- Increasing reliance on belly capacity doesn’t negate need for large main deck freighters, Boeing says.
- Boeing sees need for two new-build, large freighters per month.
- Accepting Boeing’s demand forecast, Leeham Co. sees another production rate cut for the 747-8.
Bombardier’s crisis of confidence perhaps the biggest challenge for CSeries
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Introduction
Feb. 18, 2015, c. Leeham Co.: Alain Bellemare, Bombardier’s new president and chief executive officer, has his work cut out for him.
Figure 1. The CSeries was supposed to enter service in late 2013, two full years ahead of the Airbus A320neo. This market advantage has been lost with repeated delays. BBD is sticking to its public statement that EIS is now the second half of this year (most put EIS in the fourth quarter), but there is growing belief EIS will slip to the first or even the second quarter of next year–after the A320neo EIS. Source: Bombardier, Airbus, Leeham Co. Click on image to enlarge into a crisp view.
We outlined the corporate and market perception challenges ahead of him in our Feb. 13 post. Investor and media reception to the CEO leadership change was mixed. Although Bellemare’s appointment was seen as a positive, stock traded down and Bombardier took a pounding in the press (see some reaction at the bottom of this post).
He also has challenges with a changing market place, driven by two years worth of delays in the CSeries program and exacerbated by a changing global political environment.
Summary
- Bombardier faces a crisis in confidence from customers that has to be fixed.
- The CSeries has lost its entry-into-service advantage over the Airbus A320neo and has reduced its advantage over the A319neo, the Boeing 737-8/7 and Embraer E-190/195 E2 EIS due to delays.
- A changing global political environment poses additional risks to the CSeries skyline.
Regional operations with the Turboprop, propjet or Jet; Part 2.
By Bjorn Fehrm
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Introduction
15 Feb 2015: In Part 1 of this article series we started comparing the alternatives available for turboprop short haul services in the 70 seat segment; ATR72-600 and Bombardier Q400. We also included the closest regional jet, CRJ700 from Bombardier, to compare costs and see where a jet would be 
needed to keep trip times within reason.
In Part 1 we went through the capacity of the aircraft and their basic characteristics. We also did a first check of their typical fuel consumption on a standard mission of 300 nautical miles.
We will now look closer at the economics of the aircraft; we fly them over different sectors with different speed profiles. We will also dissect their Cash Operating Costs (COC) and Direct Operating Cost (DOC). Having done all this we will look at the crossover points; for what market is ATR72 the choice and where does Q400 fit. And finally, what route sectors require a jet?
Summary:
- The ATR72-600, Bombardier Q400 and CRJ700 are quite different aircraft. The monikers turboprop, “propjet” and jet fit them well.
- The positioning of the end of the scale products are clear, the intriguing aircraft is the Q400. When does it makes sense and has Bombardier positioned it correctly?
- How does one explain its recent meager sales? Wrong aircraft at wrong time? Weak sales force? Wrong markets?
Regional operations with the Turboprop, prop-jet or Jet
- We examined the future of turboprop airliners Jan. 5, 2015, analyzing the backlogs of Bombardier and ATR–and the ATR overwhelming dominance of the current turboprop sector. This is the second of a series looking at this sector.
By Bjorn Fehrm
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Introduction
08 Feb 2015: Passenger traffic is growing the world over on a regional, domestic and international level. For domestic and international airlines the choice of mainline transport aircraft is clear today: there are only two vendors, Boeing and Airbus, and they produce similar products.
For regional transportation there is more choice. First of all, one can chose type of aircraft, turboprop or jet. Within jet, there are several OEMs that are active. The choice in turboprop is more restricted. In practice, the choice stands between the classical turboprop with ATR and a faster type from Bombardier, the Q400 “Prop-Jet” as it is called, as its speed lands between the classical turboprop and regional jet.
The question is, what are the real differences between them in terms of design, passenger comfort and economics and what is the right choice for a market segment? We will take a deeper look into this by analyzing the ATR72 as the classical turboprop, the Bombardier Q400 as the Prop-Jet and CRJ700 as the regional jet.
Summary:
- The ATR72-600, Bombardier Q400 and CRJ700 are all about the same size, around 70-80 seats single class or 60-70 seats dual class.
- They offer different comfort levels, and it is not all about speed.
- In developing the economics in two steps we seek the crossover points between the different types.
Airbus A400M; how good and how late?
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By Bjorn Fehrm
Introduction
01 Feb 2015: Six years ago Tom Enders, then-CEO for Airbus (when the parent was named EADS), threatened to stop the A400M project. He then played hardball to get eight European states to understand they had to pay 5bn Euro more or get no plane. Airbus existence could be threatened by a project that its management when the program was launch (CEO Jean Pierson) did not want but that the politicians convinced Pierson’s successor, Noel Forgeard, to do.
Airbus A400M Atlas landing at Farnborough Airshow. Source: Wikipedia.
Now Tom Enders is CEO of Airbus Group and has to apologize to the same governments that he struck a deal with then to finish the project if Airbus got the money and a consent to three years of delays. Now Airbus can no longer fulfill the terms and the airplane is still falling short of performance specifications. Deliveries have been delayed further and promised capabilities will be delivered later than said. Like then, heads are rolling at Airbus and tighter control is being applied.
Summary
- The A400M rests between the Lockheed Martin C-130 and the Boeing C-17.
- European countries need an airlifter for military and humanitarian missions.
- Dirt airstrip capability is needed.
- The program will take longer to complete and this time Airbus has to pay.
A350-1000 gets upgrade to 387 seats; we analyse the consequences
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By Bjorn Fehrm
Introduction
28 Jan 2015: Exactly one week after the first Airbus A350 started regular service between Doha and Frankfurt with Qatar Airways (on 15th of January), upgrades to the A350 capacity was announced by Airbus in a presentation to German investors. The forthcoming upgrade was hinted to media at Airbus annual press conference two weeks ago by Didier Evrard, Airbus head of programs, but no details were given at the time.
The changes were now spelled out more in detail, including pictures of the changed sections of the cabin. Having known about these changes for some time, we can now present the goals of these changes and make a first assessment of how they affect the competitive positioning of the A350.
Summary:
- The improvement program brings the Cabin-Flex lavatories to the A350 interior catalog, enabling smaller lavatory footprint and thereby increased seating densities.
- Airbus has also reworked galleys around the third and fourth door pairs, thereby freeing up galley area in other parts of the cabin.
- Taken together, Airbus claims an 18 seat improvement for the A350-1000, making it a 387 seater in a two class configuration.
- We apply the changes in our cabin model and examines how this will change the competitive landscape between Airbus A350 models and Boeing’s 787 and 777 families.
First analysis of Mitsubishi Regional Jet, MRJ
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By Bjorn Fehrm
Introduction
25 Jan 2015: Japan has not produced a commercial aircraft since 1973, when the last YS-11 twin engined turboprop rolled off the assembly line. The YS-11 was developed by a consortium of Japanese “heavies,” where two are also active in the creation of the MRJ, Mitsubishi Heavy Industries and Fuji Heavy Industries. This time Mitsubishi Heavy Industries is very much in command as they own 64% of the company set up to develop, assemble and market the aircraft, Mitsubishi Aircraft Corporation, Fuji Heavy Industries are working as design consultants this time.
Figure 1. Mitsubishi MRJ90 starting its Pratt & Whitney GTF engines for the first time. Source: Mitsubishi.
The first MRJ prototype has run its engines 10 days ago and is preparing for first flight later in the spring. It is therefore time to take a closer look at the first model, MRJ90, and compare it to its direct competitor, Embraer 175 E2.
Summary:
- The MRJ90 and E-Jet 175 E2 are the same size, around 90 seats single class or 80 seats dual class;
- Both aim for scope clause acceptance at 76 seats despite being to heavy; and
- They are different in their fuselage packaging but surprisingly similar in their capabilities.
Redefining the 757 replacement: Requirement for the 225/5000 Sector
By Bjorn Fehrm
Subscription required
Introduction
25 Feb 2015: Speculation continues to ramp up during the last weeks and months about what Boeing is up to in the 180 to 250 seat sector and what might be Airbus’ response on top of the A321LR. The segment is not well covered today within production aircraft where 737-900ER and the forthcoming MAX 9 cover up to 210 seats and A321-200 and A321neo up to 220 seats. Both fly their passengers up to a realistic mission of 3000nm, i.e. transcontinental USA.
The next in production aircraft are 787-8 and A330-200 at 240 to 280 seats. These are long range dual aisle aircraft with empty weights more than double of the former pair. The 787-8 and A330-200 per seat economics on shorter missions are therefore in another ball game.
The only aircraft that currently bridges this gap is the out-of-production Boeing 757 and there has been much debate how this shall be replaced. We have covered this question in a number or articles focusing on in turn:
We also covered the study work underway at Boeing to cover this segment. We will now dig deeper into this corner after Boeing has unequivocally stated it does not see a re-engine 757 covering this segment and any aircraft that the airlines want should be a bit larger than the 757.
Summary:
Over a series of articles we will cover:
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Posted on February 25, 2015 by Bjorn Fehrm
Airbus, Airlines, American Airlines, Boeing, GE Aviation, Leeham News and Comment, Premium
737 MAX, 747-8, 757, 787, Airbus, Boeing, KC-767