Leeham News and Analysis
There's more to real news than a news release.
Is the A330neo engine Rolls Royce’s first carbon fan model?
The Airbus A330neo program has come a long way since our 29th of December article “A330neo prospect gains traction.” With the Farnborough Air Show days away, we understand there are now Airbus internal job postings for engineers to join the program. The speculation then reduces to “when” the program will be announced, not “if.” Another would be what improvements are foreseen for the Boeing 787-derived engines that may power the neo.
Rolls Royce reportedly gains exclusivity
Reuters recently reported that Rolls Royce might get an exclusive engine deal for the A330neo. There are many reasons Airbus might give Rolls Royce or General Electric exclusivity on an engine for the A330neo, especially if Airbus sees the likely sales of the updated aircraft to stay below 500 units. The reasons can range from how much of the $2B estimated program cost the engine manufacturer would pay to what efficiency improvements they would undertake on top of what is already on the way for their 787 engines. There is every reason to believe the GEnx-1B can match the fuel consumption performance of a further developed Trent T1000-TEN. We understand Rolls Royce will leverage developments from the A350 TXWB engines but GE can just as easily leverage developments from the LEAP program.
The picture shows the Rolls Royce Trent 1000 carbon fibre fan demonstrator engine from the companies ALPS (Advanced Low Pressure System) program. Is this also the looks of the Rolls Royce A330neo engine?
Air New Zealand shows off first 787-9
Air New Zealand and Boeing displayed the industry’s first 787-9, of which ANZ is the launch customer, in a media show-and-tell today.
ANZ touted its black-painted exterior and black-decorated interior for what it called a game-changing airplane that is better than the 787-8. Officials noted this is the first time an airplane stretch has more range than the shorter version.
Air New Zealand is the launch customer for the Boeing 787-9. It displayed the plane July 9 in a show-and-tell for international media. Photo by Scott Hamilton.
Boeing officials pointed to a more efficient production system, better engineering and lessons learned from the 787-8 program that produced an airplane that is expected to at least match the current dispatch reliability of the 787-8, if not better it, upon entry-into-service in the coming weeks. The 787-8 had a difficult EIS and a lower-than-expected dispatch reliability. Lessons learned should overcome all these disappointments.
New airplanes nearing fruition? A330neo, 757RS buzz increasing
Development of two airplanes–the Airbus A330neo and a replacement for the Boeing 757–may be pushing to the forefront, according to two news articles yesterday.
Reuters reports that a decision whether to proceed with the Airbus A330neo could come before the Farnborough Air Show, even if a formal launch isn’t announced at the international event next month.
Bloomberg reports that Boeing may be nearing the launch of a 757 replacement sooner than expected.
A330neo
We’ve written extensively about both prospective airplanes, with the A330neo concept one of many subjects from the Airbus Innovation Days. The Reuters article reports what we have been hearing for some time: the airplane could be announced at Farnborough–but it might not be, either. What is new is the increasing likelihood Rolls-Royce will become the sole-source supplier. Aviation Week originally reported this prospect.
Airbus Innovation Days, Part 2: No order bubble and a lot more
Airbus lifted the embargo on John Leahy’s presentation, allowing immediate publication.
There is no aircraft order bubble, says John Leahy, COO-Customers of Airbus. Emerging markets and passenger traffic doubling every 15 years, bolstered by GDP growth, means orders will hold up, he said, leading off the Airbus Innovation Days Tuesday.
Highlights of Leahy’s address:
- There are 42 mega cities accounting for 99% of the long-haul traffic. Aircraft size is moving up and in 15 years, Leahy says RPKs will double, requiring aircraft like the A380.
- Leahy predicted the A320neo will maintain a greater market share than the Boeing 737 MAX of about 60%-40%.
- He claims the A320neo is 1.6 tons lighter than the 737 MAX.
- Leahy said the A320neo and A321neo now seat 189 and 240 seats respectively (in maximum capacity configuration). The former matches the 737 MAX and the latter has 25 more seats than the 737-9.
- He predicts China will become a competitor in 25 years.
- The competitor to the 787-10 is the A350-900 at 331 pax vs 315 pax with more range and cargo capability or derating the A359 gives a lighter aircraft at the same range.
- The 35 more seats of the 777X means the larger airplane than the A350-1000 is 35t heavier than the latter aircraft.
- The A380 hasn’t been fully optimized by many airlines; it could easily take 50 more seats.
- The A330neo is an interesting idea; we have to look at the money we have to spend and cannibalizing our A350 program. It will be the same size as the 787-9, which will have 1,000 mi more range. We could cover 92% of the routes with a wider seat and much lower capital cost. We have to look at the resources. It may not happen by Farnborough.
- No A350 slots are available until 2019-2020. Effectively sold out through 2019 though could move some positions around.
- In a walking press “scrum,” we asked Leahy, “if there is a potential market for 1,100-1,200 A330neos, why wouldn’t you do the airplane?” Leahy replied that the answer may be self-evident but once more noted that cost and resources will be important considerations. Talks with the engine makers, Rolls-Royce and GE, continue to determine the potential cost split between Airbus and them.
War of Words between Airbus and Boeing over A330neo, 787
By Leeham Co EU
We’ve seen it for decades: the War of Words between Airbus and Boeing around their competing aircraft. It hasn’t taken long for the WOW to emerge over the prospective A330neo. Only a few months ago, Boeing was muted in its assessment about the NEO and its response. No longer.
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For the 200- to 300-seat segment the WOW warning was raised Sunday at Doha, Qatar, in advance of the IATA Annual General Meeting, and no doubt it will stay aloft until this year’s Farnborough Air Show, where the formal launch of the A330neo is expected (as if anyone is doubting after Sunday).
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The start
As Aviation Week reports from the eve of the IATA AGM, John Leahy, Airbus’ chief operating office-customers, threw down the gauntlet by claiming an A330neo economics would be “unbeatable” and its “cash operating cost would equal 787-9.” Boeings counterpart John Wojick countered “at no price can it compete with the 787-10”.
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Of course, that’s not what Leahy claimed. Comparisons have been between the A330-300 and 787-9, not the 787-10.
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What it is all about
After our New Year’s analysis showed that there was a real case for an A330neo (A330neo prospect gains traction) we spent a further four months on the case, digging deeper and deeper. The result was put in our report The Business Case about the A330neo, a 60-page study which took a deep dive into the economics of the A330neo vs the A330 Classic and the Boeing 787-8/9. We did not examine the neo vs the 787-10 because these are different category airplanes, as Boeing’s Wojick should know full well.
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In an apples-to-apples comparison, we found the A330neo significantly narrows, but does not entirely close, the operating cost gap between the A330 Classic and Boeing’s new airplane. Airbus can close the gap and achieve an advantage, however, if it lowers the price of the A330neo to a level the 787 can‘t give. This is central to Leahy’s argument, which is used for the A330 Classic but achieved only with the most favorable assumptions for the Airbus airplane
To summarize:
PW Media Day 1: next gen GTF to cut fuel costs 10%-15% over today’s GTF
We’re at the Pratt & Whitney media days today and tomorrow. This is the Technology at PW panel. Participants are:
Alan Epstein, engineer and moderator. (AE)
Michael Winter, chief technologists (MW)
Graham Webb, MRJ, CSeries and EJet engines. (GW)
Jimmy Kenyon, advanced military programs. (JK)
All information is paraphrased.
GW: At $4/gal, over 60% of cost to an airline is for fuel. Engines must cut these costs. A380 and 787 consume less than 3 liters per passenger, about that of a compact car.
GTF is certified [on CSeries]. GTF now on five airframes with 12 sub-types. The engine reduces fuel and maintenance costs, reduced emissions. Fuel savings now demonstrated at 16% less than today’s engines.
Next generation of GTF will further reduce fuel burn by 10%-15%.
MW: The noise footprint will stay predominately within the airport boundaries, using 2,000 fewer foils, about half of our competitor’s engine. Emissions are about 50% below current regulations and working with NASA toward 88% below current levels.
Current bypass ratio about 13:1 and currently testing with NASA 15:1 and 18:1.
375% improvement in efficiency since the days of the Whittle jet engine.
We have the most advanced cooling system in the industry and we are exploring inserting advanced materials into the engines when there is real benefit to the customer.
JK: We’re seen similar trends to improve efficiency in military as with commercial. The Department of Defense is the biggest user of energy in the country, with about 80% in engines.
The military has seen really tight budgets in recent years. There is more than just a cost issue, it’s also an energy security issue (Iraq, Afghanistan challenges). There is a real interest in cutting energy usage and aviation being such a large part, it is a natural place to look.
The strategy considers places where you have to fly farther and/or stay on station longer. We’re working on technology to provide fuel management and efficiency to reduce costs, fly father and stay on station longer.
We’re working with USAF to obtain 25% improvement in fuel efficiency on next engines, and with Navy to also improve efficiency, and leveraging work in the commercial arena to improve thermal efficiency.
AE: Are you a one-trick pony? What have you got besides the gear?
GW: We have advanced fan module, bringing forward light weight fan cases, the next generation combustor, advanced core, state-of-the-art high pressure turbine and high speed low pressure turbine, all of which designed for the very high speeds. There are control system enhancements, working on next gen of the fan-drive gear system, short inlets for enhanced efficiency.