Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- Bjorn’s Corner: Air Transport’s route to 2050. Part 25. June 6, 2025
- New RISE powerplant benefits from decades of GE research and development June 5, 2025
- Engine makers emphasizing durability, reliability June 4, 2025
- Boeing CEO: Lessons learned are key to certification of 737-7/10 and 777X June 2, 2025
- Digital twin is a key to JetZero’s hopes for Blended Wing Body entry June 2, 2025
Airbus 2019: an operationally good year hit by compliance costs
February 13, 2020, © Leeham News in Toulouse: Airbus presented its results for 2019 today in Toulouse. Operationally, the company made a profit of €6.9bn but heavy fines (-€3.6bn) to settle a long-running bribery case and contingencies for A400M development cost coverage brought the net result to a loss of €1.3bn.
The Commercial aircraft division delivered 8% more aircraft 2019 (863 units vs. 800 2018). The mix of aircraft changed towards higher-margin single-aisle types like A321neo and A321LR whereas widebody margins peaked during 2019. The helicopter business is flat in a tough market and the profits of the Defense and Space division declined 40% on flat revenues.
MAX, 777X certification questions abound at Singapore Airshow
By Judson Rollins
February 13, 2020, © Leeham News: Despite depressed turnout at this year’s Singapore Airshow, there was still plenty of conversation around the return to service for Boeing’s beleaguered 737 MAX – and potential impacts on the certification of the 777X.
Summary
- Ungrounding will take ~30 days from certification flight; operators also have work to do
- Every MAX produced to date will require its own validation flight
- FAA will gradually hand back some oversight to Boeing
- 777X, other future certifications will be different; regulators still figuring out how
Airbus buys Bombardier’s share in A220, now sole owner together with the Government of Quebec
By Bjorn Fehrm
February 13, 2020, © Leeham News in Toulouse: The news this morning that Airbus is now the sole owner of the A220 (75%) together with the Government of Quebec (25%) is good news for the A220 and for Quebec.
Bombardier is a company in trouble and it was forced to try and save cash in the A220 partnership rather than invest in the future. This potential limitation on the A220 program is now resolved. Airbus gets sole responsibility for future plans and it has in the Government of Quebec a partner that will be positive to the growth of the A220 as it means more business for the Quebec aeronautical industry.
Could A220 fly Air Canada’s Montreal to Toulouse route? Part 2
By Bjorn Fehrm
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Introduction
February 13, 2020, © Leeham News: We continue our analysis if the Airbus A220 is a credible long-range aircraft. We started looking at the limitations of the aircraft last week and how these could be lifted.
Now we continue with an analysis of the economics of the A220 compared to established long-range aircraft like the Airbus A330 and A321LR/XLR. Is a higher frequency A220 route competitive with an A330 or A31LR/XLR operated route? We also examine how Breeze air will operate its A220s on long-range routes.
Summary:
- By virtue of its size, the A330-300 has good economics when it can be filled to a high load factor.
- The A321LR comes close in operating costs to the A330-300 on these types of routes.
- The surprise is the competitiveness of the A220-300 on a route type it wasn’t designed for.
CAE readied MAX simulators, prepared to boost production
Feb. 9, 2020, © Leeham News: The principal provider of airliner simulators sold six for the Boeing 737 MAX since the first of the year.
CAE Inc. now sold 56.
In the third quarters earnings call Friday, Marc Parent, president and CEO, said that a “high majority” of airlines that ordered the MAX have ordered a simulator from CAE.
CAE has about 80% of the simulator market.
There are 36 MAX simulators across the globe now from all providers. CAE, as of the end of the year, provided 23 of them.
Airbus’ profitability challenges
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By Vincent Valery
Introduction
Feb. 10, 2020, © Leeham News: Airbus Commercial Aircraft ended 2019 with a surprisingly strong 1,131 new aircraft orders (768 net orders) and a backlog of 7,482 aircraft.
There were 863 aircraft deliveries, 8% higher than in 2018
But 2019 also sees settlement of a year-year probe into bribes and corruption of Airbus commercial airplane sales dating back years. A record fine of €3.6bn will be recorded against 2019 earnings. These results will be announced on Feb. 13.
Settling the probe lets Airbus off the hook from criminal prosecution, providing its skirts remain clean for the next three years.
But prosecution against individuals may proceed. The potential targets have not been identified.
Summary
- The poster child of European integration;
- Profitability lagging commercial success;
- Decades-old programs still causing headaches;
- Making up for early A220 program losses;
- Short and long-term challenges.
Pontifications: A few rays of sunshine emerge in MAX crisis
Feb. 10, 2020, © Leeham News: The was plenty of angst among suppliers last week at the annual Pacific Northwest Aerospace Alliance conference.
By Scott Hamilton
Worries about the production shutdown, its duration and lack of communication from Boeing prevailed.
But there were in fact rays of sunshine beginning to break through the dark clouds of the last year.
Some suppliers—not many—reported that they’ve been told to begin shipping parts and components as early as March 1.
This gives hope that production will resume in April.
To be sure, the good news is mixed with a lot of bad news for suppliers. Some laid off workers and more layoffs are yet to come.
1 of 2 trade secret lawsuits settled; plaintiff attorneys seek withdrawal in Boeing case
By Scott Hamilton
Feb. 07, 2020, © Leeham News: A trade secret theft lawsuit against the giant insurance company Xavian Holdings involving an insurance funding program for Boeing airplanes was settled last month under undisclosed terms.
Marsh and Boeing were sued in 2018 by Xavian, which claimed it created the plan and undertook all the research for a concept that it presented to Boeing under a trade secret/non-disclosure agreement.
The Boeing lawsuit is pending.
Replacing ExIm funding
The concept was intended to replace funding previously provided by the US ExIm Bank. Congress refused to renew the bank’s authority to fund deals of the size required for Boeing airplanes.
Boeing initially declined Xavian’s overtures when it looked like ExIm would be reauthorized. When Congress failed to do so, Boeing contacted Xavian to renew 
conversations, the lawsuits claimed.
Robert Morin of the US ExIm Bank, who was aware of Xavian’s efforts, later went to work for Marsh, taking with him information obtained under the Xavian plan, Xavian claimed—hence the lawsuit against Marsh.
In court documents in New York, the federal court in the Southern District ordered mediation. Documents reveal a settlement was reached, but terms were not disclosed. Court approval of the settlement is pending.
Bjorn’s Corner: Why e in ePlane shall stand for environment, Part 8. Hydrogen.
February 7, 2020, ©. Leeham News: After discussing established ways of improving the environmental footprint of our air transport system and highlighting the challenges involved with an electric/hybrid route we now look at hydrogen as an alternative energy source.
We will quote from a study series made by Airbus at the turn of the century. It’s today 20 years old but its ideas and conclusions are more relevant than ever.
Figure 1. Hydrogen powered airliner from Airbus study. Source: Airbus study presentation.
Boeing will proceed with NMA. Or FSA. Take a poll
By Scott Hamilton
Feb. 6, 2020, © Leeham News: Boeing will decide to proceed with the launch of the New Midmarket Aircraft (NMA).
Or it won’t and instead launch a single-aisle replacement for the 737 MAX that essentially 
reinvents the long-gone 757.
These are the two popular options discussed yesterday at the annual conference of the Pacific Northwest Aerospace Alliance in Lynnwood (WA).
Aerospace analyst Ken Herbert of Canaccord Genuity believes Boeing will launch the NMA.
Analyst Rob Epstein of Bank of America Merrill Lynch believes Boeing will go with the Future Small Airplane (FSA), a fresh design that is similar in size to the 757-200 and 757-300.
Consultants Kevin Michaels of Aerodynamic Advisory and Michel Merluzeau of AIR voted for the NMA. Consultant Richard Aboulafia of The Teal Group voted for the FSA.