Dec. 9, 2019, © Leeham News: I know Boeing is preoccupied right now. But it has to get off the pot and decide to proceed with a new airplane.
We believe the New Midmarket Airplane is still required. But Boeing salesmen have also floated the concept of a new, single-aisle airplane to key players in the market. Either way, Boeing has to do something.
At least, that’s how we see it at Leeham Co.
The order last week by United Airlines for 50 Airbus A321XLRs should be a wake up call.
It’s not the only one Boeing has had.
Dec. 3, 2019, © Leeham News: United Airlines today announced an order for 50 Airbus A321XLRs.
The airplane has an advertised range of 4,700nm (5,400 statute miles), or a nine hour flight.
UAL will replace its aging Boeing 757s on a one-for-one basis beginning in 2024.
The XLR’s targeted entry into service is 2023.
By Bjorn Fehrm
November 21, 2019, © Leeham News: Last week we started our analysis of the De Havilland Canada’s DHC 8-400 as a replacement for US Scope Clause 50 seat jets like the Bombardier CRJ200 or the Embraer ERJ-145.
We compared a newly produced and adapted DHC 8-400 with United’s CRJ-700 conversion to CRJ550, a 50-seater version of the larger jet. After looking at the airplane dimensions and cabin spaces last week we now go deeper into the configuration of the aircraft and their economics.
By Vincent Valery
Oct. 21, 2019, © Leeham News: As Boeing sorts out final requirements with regulators for the 737 MAX return to service, preparations to resume deliveries are in full steam.
The company is hiring scores of temporary workers to return grounded and built but not yet delivered airframes. A note from Alliance Bernstein estimates that Boeing will be able to hand over 25 aircraft per month on top of those that come off the assembly line.
After taking hefty losses and having lost its most robust cash flow source for almost a year, Boeing will want to hand over as many aircraft to airlines as fast as possible.
Do all 737 MAX customers, likewise, want their aircraft back in service as soon as possible?
Oct. 14, 2019, © Leeham News: Boeing is reconsidering a previous idea to re-engine the 767 with GEnx powerplants, Flight Global reported last week.
The idea was run up the flagpole, so-to-speak, in 2017.
At that time, the 737 MAX was just entering service. There was, of course, no hint of any turbulence on the horizon.
The business case for the New Midmarket Aircraft was difficult even then. So why not look at a 767RE and restarting the 757 line, also up upgrades?
Boeing being Boeing, it looks at everything. It ruled out restarting the 757 line (the challenges would have been pretty daunting).
The 767 got more studious traction, including simply restarting the passenger line and providing a really cheap acquisition. A 767RE, however, was viewed as too complex under the circumstances and it would compete with the 787.
American Airlines and United Airlines were actually interested in the airplane restart.
Sept. 4, 2019, © Leeham News: Airbus’ decision a few months ago to keep the A350 production rate at 10/mo appears to be a wise one, considering that there is a small production gap in 2022 but increasingly large ones from 2023.
Boeing boosted rates this year of the 787, which competes with the A350-900 but not the -1000, to 14/mo. Boeing is sold out at this rate in 2020 and 2021, but has a big gap in 2022 and larger gaps thereafter.
Both companies bank on a splurge of orders early next decade to fill the production gaps. Each says there will be a retirement surge beginning in about 2022.
Airbus offers the A330neo and A350. Boeing pitches the 787 and 777X—with a combined production capacity of 35/mo or 389/yr at current rates.
July 15, 2019, © Leeham News: Boeing can’t catch a break.
Some may argue it doesn’t deserve one, given what’s come out about the 737 MAX development. And the sloppy production of the 787 at the Charleston (SC) plant. And the FOD issues with the KC-46A at the Everett (WA) plant.
To be sure, Boeing has gotten a lot of bad press it’s deserved. But last week, two pieces of news had connections to the MAX that were (1) overwrought and (2) unwarranted.
May 28, 2019, © Leeham News: The first E175-E2 prototype is now in production at the Embraer plant here at Sao Jose dos Campos, Brazil, despite having no firm orders and only a single conditional order for 100 aircraft from a US airline that so far can’t use the airplane.
Embraer designed the airplane with the hope the so-called Scope Clause would be relaxed in contract negotiations this year and next by pilots for American, Delta, United and Alaska airlines. It’s become clear that relief is unlikely.
April 29, 2019, © Leeham News: Boeing reduced the production rate on the 737 line in mid-April from 52/mo to 42/mo in response to the grounding of the airplane by regulators worldwide.
The company and others said they didn’t know how long the airplane would be grounded.
But Boeing told suppliers to keep producing parts, components and the fuselage at rate 52.
The announcement was made April 5. At the same time, Boeing gave suppliers the rate ramp-up schedule.