Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- Boeing’s 737 North Line and the Everett factory: in transition now June 9, 2025
- 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
One year after Lion Air crash, what’s the MAX’s future in Asia?
By Judson Rollins
Oct. 31, 2019, © Leeham News: One year ago this week, Lion Air flight JT610 went down in the Java Sea near Jakarta. It was the first of two accidents that would expose catastrophic design problems with the 737 MAX – and a regulatory relationship between Boeing and the FAA that had become too close to comfort.
Although much has been written about the US major carriers’ orders for the MAX, relatively little has been said about orders from the Eastern Hemisphere. Prior to the MAX’s grounding, 136 airplanes had been delivered to the region and another 1,186 were on firm order. This comprises nearly 27% of Boeing’s firm MAX orders.
The following table shows the top MAX operators in Asia & Australasia:
Is reengining the Boeing 767 a good idea? Part 3.
By Bjorn Fehrm
Subscription Required
Introduction
October 31, 2019, © Leeham News: We have looked into what a reengining of the 767 with GE GEnx engines would give over the last two weeks. FlightGlobal wrote Boeing considers reengining the 767-400ER with the GEnx engine to produce a new freighter and perhaps a replacement for the NMA project.
We analyzed the aircraft fundamentals in Part 1, then passenger and cargo capacities in Part 2 and now we finish with the economics of different possible variants compared with the standard 767 and a possible NMA.
Summary:
- The economic improvement of a GEnx reengined 767 is hampered by the new engine’s larger size and higher weight.
- After catering for the increased empty weight and drag of a reengined 767, the result puts the project in question.
- A reengined 767 is far from a replacement for the NMA.
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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.
Faury looks to transform Airbus
- Guillaume Faury has been the chief executive officer of Airbus Group since April 1. In this exclusive interview, he looks back on his first six months and ahead for the future of the company. This is part 1 of two parts. Part 2 will appear soon.
Guillaume Faury
Oct. 30, 2019, © Leeham News: Guillaume Faury assumed his office as chief executive officer of the Airbus Group at a time when the company was trying to emerge from years-long scandals over bribery and corruption probes and the industry was only beginning to reel from the grounding of the Boeing 737 MAX.
Now, he’s focused on guiding Airbus in the future through a series of transformations to put the scandals behind the company, change production for the future and prepare for new airplanes that inevitably must be designed.
Becoming CEO
Faury’s been with Airbus for 20 years, surrounding a four-year stint with Peugeot from 2009-2013 as EVPO of Research and Development. He was named president of Airbus Commercial in February 2018. He previously was president and CEO of Airbus Helicopters from 2013-2018.
He succeeded CEO Tom Enders, who was not going to be given another term as part of the fallout of the numerous government investigations into past practices at Airbus involving third parties for aircraft sales, bribery and corruption allegations.
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Although Enders and CFO Harald Wilhelm initiated the probes and reported the problems to the governments, they along with many others had to go as Airbus tried to limit the damage.
Boeing’s Muilenburg opening statement to the US House
Dennis Muilenburg
Oct. 29, 2019: Having completed his appearance before the US Senate today, Boeing CEO Dennis Muilenburg will appear before the US House tomorrow.
Here is his opening statement: Opening Statement-10-30.
His appearance before the Senate was about as expected. Most Senators seemed more interested in their five minutes of TV time than trying to get at answers and determine a path forward.
Sen. Ted Cruz (R-TX) was an exception, as was Sen. John Tester (D-MT). Cruz, a former prosecutor, pressed Muilenburg on his ignorance of key documents and the lack of communication with key employees.
Congress is accountable in Boeing MAX crisis, too
By Scott Hamilton
Commentary
Dennis Muilenburg
When Boeing CEO Dennis Muilenburg appears before the US Senate today and the US House tomorrow, he needs to be sure the company owns up to its role in the Lion Air and Ethiopian Airlines 737 MAX crashes.
The advance copy of the opening statement to the Senate, released yesterday, heads in this direction.
But if Congress truly wants to understand how 346 people died and certification of the MCAS and MAX evolved, it damn well better hold the Federal Aviation Administration accountable, too.
There is little doubt Congress will put Boeing and the FAA through the meat grinder.
Muilenburg opening statement to Senate
Oct. 28, 2019: Boeing released the opening statement of CEO Dennis Muilenburg to the US Senate at a hearing scheduled for tomorrow.
The statement may be downloaded here: Opening Statement-DM-102919
Boeing’s 777X problem: Shifting market, lagging economics, softening order book
By Judson Rollins
Subscription Required
Introduction
Oct. 28, 2019, © Leeham News: The Boeing 777X’s lackluster sales to date put it in a similar light as the soon-to-end A380 program. Is the era of the 400+ seat aircraft turning onto final approach?
There are only 344 777Xs on firm order at present. As many as 59 of these orders are soft. The aircraft has been available for sale since May 2013, during a period of near-record global airline profitability. This calls into question the market viability of the 777X – and whether Boeing will ever break even on the program.
Summary
- VLA demand is limited; Airbus’s forecast seems overly optimistic.
- 777X order book is concentrated on just a handful of customers.
- Middle East carriers account for two-thirds of 777X orders.
- Inferior economics limit the 777-8 to a narrow niche like the 777-200LR.
- 777-9 economics outweighed by trip cost risk, lower yield of marginal seats.
A year since the Lion Air JT610 crash
By Bjorn Fehrm
October 28, 2019, ©. Leeham News: Tomorrow it’s one year since the crash of Lion Year JT610 into the sea in Indonesia. The aircraft which went down was a brand new Boeing 737 MAX 8 and the world was stunned how such a new aircraft could crash.
The crash triggered the deepest crisis in Boeing’s 100-year history and revealed shortcomings in Boeing’s and FAA’s airworthiness work and supervision. The Lion Air JT610 final report was issued Friday and we now know what happened.
Pontifications: Southwest to evaluate splitting airplane supplier next year
Oct. 28, 2019, © Leeham News: Gary Kelly, the chairman of Southwest Airlines, told CNBC Thursday that next year, the company will review whether to source airplanes from another manufacturer besides Boeing.
This, of course, means Airbus.
The prolonged grounding of the Boeing 737 MAX is the reason. Southwest says the grounding already has cost nearly $500m in lost revenues.
Kelly said the analysis won’t be for “smaller” airplanes, but he didn’t specify to CNBC what this means.
Southwest has 500 Boeing 737-700s seating 143 passengers at 30-31 inch pitch.
The Airbus A220-300 seats 145 at 32 inches in the Air Baltic one-class configuration.
The Embraer E195-E2 seats 146 passengers, but in a 28-inch pitch. At Southwest’s preferred 31-32 inch pitch, the E-Jet seats 132 passengers.
Since the context was the 737-8 MAX, did Kelly mean, not smaller than the -8? This isn’t known.