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By Bjorn Fehrm
Part 1 of 3
Introduction
The Boeing 757 was developed in the late 1970s as a replacement for Boeing’s popular 727 mid-range single aisle aircraft. Starting from the smaller 727, it ultimately grew to 180 to 230 seat capacity and US transcontinental range. With initial orders from Eastern Airlines and British Airways, the aircraft nonetheless had poor sales through most of the 1980s, picking up with a surge of orders in 1988-1990 when major deals were announced from American, Delta and United airlines.
Following the 1991 Persian Gulf War and recession, orders plunged until the mid-decade with a respectable resurgence. After 9/11, sales dried up and Boeing terminated the program.
Summary
The announcement last week that AirBerlin canceled orders for 15 Boeing 787s gives Boeing an unexpected, big advantage in the contest for a big wide-body order from Delta Air Lines–depending on when Delta wants the airplanes.
The competition apparently has been narrowed to the Airbus A350-900 and the Boeing 787-9, according to Flight Global. Based on this article, the Airbus A330-900 neo has been eliminated, which if true is a blow to the fledgling program in which Airbus had counted on Delta to be a launch customer.
Outside of the OEMs and Delta, it’s not known when Delta wants 50 widebodies. But the A350 and 787 are essentially sold out through the end of the decade, though both OEMs can typically find delivery slots for important campaigns such as this one by over-booking or persuading other customers to move their delivery positions.
Airbus has plenty of slots for the A330neo from 4Q2017, when entry-into-service is planned. But with the apparent elimination of the A330neo from the competition, delivery schedule becomes important–and the AirBerlin cancellation works to Boeing’s advantage.
Airbus could decide within the next six months whether to re-engine the A380 with Rolls-Royce powerplants, says Tim Clark, the president of Emirate Airlines, which has ordered more of the giant airplanes than any other customer.

Tim Clark, president of Emirates Airlines. Emirates Airlines photo.
Clark, speaking to a press gaggle on the sidelines of the World Routes conference Sunday in Chicago, said a RR engine would likely be based on elements of the Trent 1000 and Trent 7000 engines on the Boeing 787 and Airbus A330neo.
When we did our analysis of the A330neo after the Farnborough launch we limited our checks to trip fuel efficiency as we did not have enough clarity of the cabin improvements that Airbus announced. After a meeting in Toulouse last week with Airbus cabin experts we know have the missing information.
Airbus gives the A330 cabin an interesting update for the A330neo. It comprises A330 ideas (improved crew rests), A350 ideas (improved lighting and IFE) and finally ideas tried out on the A320 (SpaceFlex and SmartLav lavatories). Combined they give the A330neo cabin a better passenger experience and improved utilization of cabin space. Read more
Hawaiian Air’s A350-800s: Hawaiian Airlines July 22 ordered six Airbus A330-800s and simultaneously dropped its order for six A350-800s. HA also took six purchase rights for the A338. Deliveries begin in 2019.
The A338 is slightly smaller, nominally at 252 seats, and has somewhat less range at 7,600nm than the 276-seat, 8,250nm A358, but only Hawaiian knows how much it needed the extra range. Losing the extra seats does give HA a hit to revenue potential, however. For wide-body airplanes, Airbus says each seat has the revenue potential of $2m/yr.
Offsetting the revenue loss is a far lower capital cost for the A338 vs the A358. Our economic analysis, based on technical specifications estimated before the Farnborough Air Show and before Airbus revealed data for the A338, showed the A338 pretty close to the A358 on a pure operating cost basis, not including adjustments for capital cost.
Further to our initial analysis of the launched Airbus A330neo, here is our follow up diving deeper into engine matters and maintenance costs.
The A330neo engine
We met with Rolls Royce Vice President Customer Marketing Richard Goodhead to talk about the Trent T7000 for the A330neo and to straighten some misconceptions around the engine. First the base facts as presented by Airbus and Rolls Royce Monday: Read more
Leeham News launches Premium plan, companion to free content; engineer joins staff
Free content.
Leeham News and Comment (LNC) today launched a Premium subscription plan as a companion to free content.
LNC has provided news and commentary since February 2008, providing industry-leading information and insightful analysis, principally focuses on Airbus, Boeing, Bombardier and Embraer but also including emerging challengers to the Big Four OEMs, the leading engine manufacturers, suppliers and airline news.
LNC has been a leading resource of news and comment throughout the commercial aviation industry and its professional followers in the aerospace supply chain, investment analysts and the media.
Since the first of this year, LNC increasingly provided more and more technically-based content. This content is valuable and supplements the industry-leading news and reporting that has been provided since 2008. We are pleased to announce the addition to our staff, Bjorn Fehrm, who focuses on technical evaluation and complements the strategic expertise of Scott Hamilton, the founder of LNC and Leeham Co. consultancy.
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16 Comments
Posted on October 14, 2014 by Scott Hamilton
Airbus, Airlines, Boeing, Bombardier, CFM, Comac, Embraer, Irkut, Mitsubishi, Pratt & Whitney, Rolls-Royce, Sukhoi
737-9, 757, 757 replacement, A321NEO, Airbus, Bjorn Fehrm, Boeing, Bombardier, CFM, Comac, Embraer, Irkut, Leeham News and Comment, Mitsubishi, Pratt & Whitney, Rolls-Royce, Sukhoi