Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- Better transparency needed on Boeing’s 1Q earnings call April 22, 2024
- Bjorn’s Corner: New engine development. Part 4. Propulsive efficiency April 19, 2024
- Boeing unlikely to meet FAA’s 90-day deadline for new safety program April 18, 2024
- Focus on quality not slowing innovation, says GKN April 18, 2024
- Boeing defends 787, 777 against whistleblower charges April 17, 2024
Airbus 2019 results hit by A320neo delivery delays
By Bjorn Fehrm
October 30, 2018, © Leeham News: Airbus announced 3Q 2019 results today. Revenue and profits for the first nine months were up from last year but the company is still wrestling with delivery problems for A320neos from its Hamburg factories. The delays during the first nine months cannot be caught up and the delivery guidance for 2019 is now 860 aircraft instead of 880-890.
Guided free cash flow will suffer as a result while profits for the year are guided unchanged as the first nine months delivered healthy profits.
Lower interest rates, a tailwind for new orders
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By Vincent Valery
Introduction
Sep. 16, 2019, © Leeham News: Over the last few weeks, LNA outlined significant production gaps from 2022 onwards for the major widebody programs at Airbus and Boeing. The OEMs expect airlines to place large fleet renewal orders to fill those.
Aircraft deliveries need to be financed one way or another. Access to affordable financing is crucial for airlines and lessors to make good on their orders.
Interest rates in the world’s major currencies hit an all-time low a few weeks ago. The 30-year US Treasury yield dipped below 2%, while the 10Y German Bund was at -70 basis points.
Corporations duly took advantage of the lower rates to issue record amounts of debt in US dollars during the first week of September. United Airlines and Bank of China Aviation were among them.
We will analyze how lower interest rates could benefit the aviation industry.
Summary
- Varying interest rate exposure for airlines and lessors.
- Level of access to capital markets among airlines.
- Hurdles to capitalize on low interest rates.
- Unlikely beneficiaries if low rates persist in the near future.
- Boosting new widebody order prospects.
Airbus 1H2019 results: The A320neo gives Airbus a solid first half
By Bjorn Fehrm
July 31, 2019, ©. Leeham News: Airbus announced its 1H2019 results today, presenting a solid first half with progress in A320neo and A350 deliveries. The A220, brought over from Bombardier, is also making progress.
Yesterday, Airbus could announce an MOU with Air France for 60 A220-300. When converted to order it brings the orders for the type above 600. The A220 is gradually becoming a good deal for Airbus, and the type an important part of its lineup.
Read more
Paris Air Show: notable orders other than A321XLR and 737MAX
By Vincent Valery
June 24, 2019, © Leeham News: The A321XLR launch and IAG’s 737MAX order gathered most of the attention during the 2019 Paris Air Show.
Nevertheless, other significant orders were placed by airlines and lessors.
How Mitsubishi Aircraft morphed the MRJ70 into the M100 SpaceJet
By Bjorn Fehrm
June 13, 2019, © Leeham News.: Mitsubishi Aircraft Corp (MITAC) has done more than a rebranding and new livery in creating the SpaceJet out of the MRJ70.
It’s changing the design, its materials and several parts of the interior to accommodate more passengers than the MRJ70.
- Related story: How the SpaceJet came to be.
Here is a technical analysis of the aircraft, based on information released today and our own Aircraft Performance Model.
We describe the changes MITAC made to the MRJ70 to end up with the M100 SpaceJet and what these mean for passengers and operators.
Figure 1. The Mitsubishi M100 SpaceJet replacing the MRJ70. Source: Mitsubishi.
Mitsubishi in negotiations with Bombardier to acquire the CRJ program (Updated)
By Bjorn Fehrm
June 5, 2019, © Leeham News.: The Air Current broke the news earlier today Mitsubishi Heavy Industries (MHI) is negotiating with Bombardier to buy the CRJ program.
BBC has got comments from both companies confirming the discussions, with cautions nothing is settled and it can still result in a no deal. Should it happen it would make a lot of sense for both parties.
UPDATE: Bombardier has issued a statement confirming the discussions, see below.
Boeing expects another banner year for customers
By Dan Catchpole
Danieljcatchpole[at]gmail[dot]com
Feb. 13, 2019, © Leeham News: Boeing Commercial Airplanes expects another banner year in 2019, Randy Tinseth, BCA vice president of marketing, said Tuesday at the PNAA conference.
The airplane maker expects its customers to make about $36 billion in profit this year, he said. That would make five consecutive years of BCA customers recording more than $30 billion in profits.
Tinseth declined to comment on the company’s decision to delay possibly launching the New Midmarket Airplane (NMA) to 2020. However, as Boeing CEO Dennis Muilenburg noted during the Jan. 30 earnings call, Boeing likely will seek authority to offer this year from its board of directors.
He did say he was surprised to hear so many people already referring to it as the 797.
“I can tell you one thing—that has not been discussed,” Tinseth said.
Indonesian authorities release preliminary Lion Air crash report
By Bjorn Fehrm
November 28, 2018, © Leeham News.: The Indonesian National Transportation Safety Committee (KNKT) has released the preliminary report about the fatal flight Lion Air LNI610.
The report is 78 pages and gives added information in several areas. Rather than repeat what has been reported before, the article is focused on what new facts are revealed and we make some observations around these facts.
Boeing’s automatic trim for the 737 MAX was not disclosed to the Pilots
By Bjorn Fehrm
November 14, 2018, © Leeham News.: The automatic trim Boeing introduced on the 737 MAX, called MCAS, was news to us last week. Graver, it was news to the Pilots flying the MAX since 18 months as well.
Boeing and its oversight, the FAA, decided the Airlines and their Pilots had no need to know. The Lion Air accident can prove otherwise.
Bjorn’s Corner: Supersonic transport revival, Part 6
By Bjorn Fehrm
September 14, 2018, ©. Leeham News: In the last Corner we looked at the change of aerodynamic center when passing Mach 1 and the resulting trim change.
We also discussed the high pitch angle of a delta like the Concorde when landing, which brings visibility problems for the pilots. Now we look into the problem of skin heating at high Mach flight.
Figure 1. The skin temperatures of Concorde at Mach 2. Source: Wikipedia.