Is the A380 less economical than a 777-300ER?

By Bjorn Fehrm

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Introduction

December 06, 2018, © Leeham News.: Our Monday article “A380 suffers new blow, future remains bleak” describes how Air France hands back five of their 10 Airbus A380-800 to their lessor with start next year.

The article details the reasons behind the returns. Other media writes the A380 are notably more expensive to run than a Boeing 777-300ER. As so often, this is a serious case of apples and oranges.

Summary:

  • To compare aircraft like-for-like, they need to be compared with the same rules for cabins and operations.
  • When this is done, the A380 is not more expensive to operate than a 777-300ER.
  • The caveat is: if filled to the same load factor.
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Is Airbus working on a 200t A330neo Regional?

By Bjorn Fehrm

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Introduction

November 29, 2018, © Leeham News.: Bloomberg wrote in the week Airbus is bringing out a 200 tonnes version of the A330neo as a counterstroke to the NMA. Having checked the characteristic of such a version, we contacted Airbus for clarifications.

Here is what Airbus said and how any 200t A330neo fits into Airbus future deliveries.

Summary:

  • A 200t A330neo would not be an ideal version to take market share away from a future NMA. It would have a shorter range than even the shortest range NMA.
  • Airbus explained what they really said on Monday. A 200 tonnes A330neo was part of presenting the flexibility of the A330neo concept, including how this flexibility would work against a planned NMA.

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Airbus’ A320neo Plus, A350neo and new single-aisle airplane

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Introduction

Nov. 26, 2018, © Leeham News: There are few secrets that stay secret for long in commercial aviation.

Airplane concepts are discussed with customers. Information must be shared with suppliers. And then there’s the manufacturer’s own website.

Bloomberg News reported last week that Airbus is looking for help to design the A320neo Plus, an entirely new single aisle airplane and a re-engined A350, the A350neo. All this came from Airbus’ website, Bloomberg reported.

Some of this is old news.

Summary
  • The A320neo Plus concepts have been around for a few years.
  • The idea that Airbus has conceived a new single-aisle airplane is not new, either. It’s shown open-rotor and futuristic design concepts at air shows, conferences and earnings meetings for years (as has Boeing).
  • Although not mentioned in the Bloomberg article, a new wide-body airliner is also something Airbus conceived as a possible response to the Boeing New Midmarket Airplane—this isn’t new, either.
  • What is new is the prospect of an A350neo. The airplane has been in service only a few years, but if one stops and thinks about it, a neo is already a logical progression.

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Pontifications: Transitions, clearing the decks and turmoil at Airbus

By Scott Hamilton

Nov. 26, 2018, © Leeham News: With the naming of CFO and COO officers-in-waiting, Airbus Group has completed the extreme makeover of its executive ranks.

The full transition won’t be complete until April. It’s widely been reported that these changes, including retirements and pushing out people who were not yet near retirement age, was a necessary step to settle fraud and corruption investigations undertaken by England, France, Germany and even the United States.

The latest appointments, announced last week, are for the successors of CFO Harald Wilhelm and Airbus Commercial COO Tom Williams. Dominik Asam, 49, replaces the 52 year old Wilhelm in April. Michael Schöllhorn, 53, replaces the 66 year old Williams Feb. 1. Read more

Delta orders more A330-900, pushes out A350-900

By Bjorn Fehrm

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Introduction

November 22, 2018, © Leeham News.: Delta and Airbus announced Friday; Delta will increase its A330-900 order from 25 to 35 aircraft and push out 10 ordered A350-900 five years, to 2025-2026.

Why this change for Delta? Can the 10 added A330-900 replace the planned A350-900? If so, will other airlines do the same?Summary:

  • Delta is a large operator of A330. With the new order, it will grow to 60 aircraft in the next five years. Through its Delta TechOps operation, it has achieved low operating costs for the A330.
  • In its 251t version available from 2020, the A330-900 can cover most of Delta’s Asian destinations.
  • The A350-900 is now a sub-fleet of 15 aircraft until 2025. It will be reserved for Delta’s longest Asian destinations and where higher capacity is needed.

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Automation reduces foreign advantages over US

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Introduction

Nov. 19, 2018, © Leeham News: The move toward increasing automation makes US more competitive than moving work to other countries, an expert in industrial efficiencies said last week at a meeting sponsored by the Pacific Northwest Aerospace Alliance.

The same is true when it comes to states competing against other states, he said—something that is especially relevant as Washington State girds for expected competition from Southern states, and especially South Carolina, for the prospective Boeing New Midmarket Airplane.

Summary
  • Automation reduces US labor costs.
  • 60% of Boeing’s workforce is eligible for retirement in the next six years.
  • Optimizing the manufacturing value chain based on finite resources.
  • Pressure for speedy decisions is greater than ever.

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Airbus fights delivery challenges on several fronts

By Bjorn Fehrm

October 31, 2018, ©. Leeham Co: Airbus announced 3Q 2018 results today. The company is wrestling with delivery problems for several of its aircraft programs. Its inventory of finished aircraft which can’t be delivered has increased by €5bn as a result.

On the positive side is a smooth running A350 program and that the A220 program, which is consolidated into Airbus for the first time, seems void of unpleasant surprises.

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Airbus’ disadvantages in widebody campaigns

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Introduction

Oct. 29, 2018, © Leeham Co.: Airbus faces a key disadvantage when it comes to winning current wide-body campaigns against Boeing.

The disadvantage is entirely out of its control.

It’s not about whether the A330neo or A350 vs the 787 economics are out of kilter. They’re not.

It’s about the engines, LNC is told by multiple market sources. Specifically Rolls-Royce engines, which exclusively power the Airbus wide-bodies.

Summary
  • Airlines affected by Rolls-Royce-powered 787 problems are hopping mad.
  • The negative halo effect puts questions over the Trent 7000-powered A330neo.
  • While less affected, there is a negative halo effect over the Trent XWB-powered A350.
  • Airlines considering follow-on ordered of 787s are ready to jump from RR to GE.

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Pontifications: Engines, engines, engines

By Scott Hamilton

Oct. 29, 2018, © Leeham Co.: Engines, engines, engines.

News emerged last week that Rolls-Royce admitted its continuing problems with the Trent 1000 that powers the Boeing 787 now bled over to the Trent 7000.

RR will fall short of delivering the number of engines need to Airbus for the A330neo, meaning fewer deliveries of the airplane this year.

Boeing said it is clearing its inventory of 737 MAXes, but CFM LEAP engines are still late, slowing the effort.

Pratt & Whitney’s GTF engine deliveries to Airbus are caught up, but technical issues still plague in-service engines. CFM still has technical issues as well, though not as severe or persistent as with GTF, with its LEAP engines. Read more

Pontifications: Market Intelligence from NY

By Scott Hamilton

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