EU can retaliate against Boeing immediately; old WTO win outstanding

Sept. 30, 2019, © Leeham News: An obscure and largely forgotten European win in a previous illegal subsidies case against Boeing and the United States before the World TradeOrganization (WTO) opens the door for immediate retaliation against Boeing if the Trump Administration levies tariffs against Airbus.

LNA yesterday revealed the European Union may retaliate immediately against US tariffs on Airbus or EU goods. The US will be free to do so as early as October.

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A380 service life struggles

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By Vincent Valery

Introduction

Sep. 30, 2019, © Leeham News: It hasn’t been an easy year for the Airbus A380 program since the end of production was announced in February.

Lufthansa announced in March that Airbus would buy back six A380s in 2022/2023 as part of a follow up order for 20 A350-900s. Air France intends to retire its Superjumbo fleet by 2022. Emirates retired two aircraft that were less than seven years old.

A number of factors are leading airlines to prematurely retire their A380s.

Summary
  • Small MRO market increases maintenance costs;
  • (Prohibitively) expensive cabin refurbishments;
  • Operators struggling to operate profitably year-round;
  • A lack of secondary market;
  • No business case for engine PIPs.

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Pontifications: Safety changes good for Boeing, the industry

By Scott Hamilton

Sept. 30, 2019, © Leeham News: Boeing’s announcement last week that it’s establish a permanent Board level safety committee, realigning some functions and creating new lines of reporting is a good and necessary step.

It’s not only good and necessary for the 737 MAX return to service, it’s good and necessary for Boeing and for the industry.

It’s also just a first step in restoring confidence in the MAX and the Boeing brands.

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EU ready to instantly retaliate if US imposes tariffs in Airbus WTO case

Sept. 29, 2019, © Leeham News: The European Union is ready to retaliate against the US for any tariffs imposed, as early as October, in response to the World Trade Organization authorization to do so in connection with the Airbus subsidies case.

Even though the EU’s case against Boeing before the WTO, seeking authorization to impose subsidies for Boeing’s illegal subsidies, won’t be finished until next spring, the EU, French and German authorities pointed out that previous WTO cases against the US which they won allow them to impose tariffs they haven’t levied.

They are prepared to do so immediately in the Trump Administration levies tariffs on European goods.

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Bjorn’s Corner: Fly by steel or electrical wire, Part 10

By Bjorn Fehrm

September 27, 2019, ©. Leeham News: In our series about classical flight controls (“fly by steel wire”) and Fly-By-Wire (FBW or “fly by electrical wire”) we started a discussion about the need for stability augmentation systems last week and how these are implemented.

We handled yaw augmentation and began the discussion on pitch augmentation. Now we dig deeper into the trickier form of pitch augmentation, the one needed because of regions of lower stability in pitch at higher Angles of Attack (AoA).

Figure 1. The pitch moment curve of a modern airliner. Source: Leeham Co.

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Embraer’s E195-E2 or Airbus A220-300 under 150 seats? Part 2

By Bjorn Fehrm

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Introduction 

September 26, 2019, ©. Leeham News: We started an analysis of what aircraft to choose for the segment 120 to 150 seats last week, where we compared Embraer’s E195-E2 with Airbus A220-300.

We began by comparing the fundamentals: their size, their engines, physical data and how these would compare in a normalized way. Now we continue by looking at the drag characteristics of the airframes and what this means for their fuel consumption.

Summary:

  • Any difference in fuel consumption between the E195-E2 and the A220-300 will be done to the optimization of the airframes, as they share the same engine.
  • The drag picture for the E195-E2 versus the A220-300 is a mixed bag. One is better on normalized friction drag (drag due to size) the other on induced drag (drag due to weight).

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European bloodbath dumps aircraft back into market

Sept. 25, 2019, © Leeham News: As many as 135 Airbus and Boeing jets could be dumped on the market following the bankruptcies or cessation of operations of five airlines and a financially distressed sixth carrier that is a subsidiary of one of the bankrupt ones.

Thomas Cook, the travel company that is parent to Thomas Cook Airlines, Thomas Cook Scandinavia and Condor Airlines declared insolvency Monday. The two Thomas Cook airlines ceased operations.

Condor maintained service for now and received an emergency loan of €380m loan from the German government. But its long-term survival may depend on acquisition by the Lufthansa Group.

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Boeing Board Aerospace Safety Committee recommends realignment, enhancement of procedures

Admiral Edmund Giambastiani (Ret). Photo credit: Wetheitalians.com

Sept. 25, 2019, © Leeham News: Boeing today outlined the results of the investigation of a special Board of Directors committee formed in August that creates new processes and organizational structures aimed at preventing another 737 MAX crisis and improving safety within Boeing Commercial Airplanes.

The Board-level Aerospace Safety Committee is the four-member committee announced by Boeing CEO Dennis Muilenburg following the second fatal accident of the MAX in March.

Admiral Edmund Giambastiani (Ret), a former nuclear submarine officer, chaired the committee. As a result of the committee’s work, the following recommendations have been made:

  • Create a Product and Services Safety Organization;
  • Realign the Engineering Function;
  • Establish a Design Requirements Program;
  • Enhance the Continued Operation Safety Program;
  • Re-examine flight deck design and operation; and
  • Expand the role and reach of the Safety Promotion Center.

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The Struggling European Regional Airlines

  • This is the third in a series of articles on the struggling low cost and leisure carriers in Europe.

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By Vincent Valery

Introduction       

Sep. 23, 2019, © Leeham News: Numerous European regional airlines are struggling financially.

FlyBe was sold earlier this year for a symbolic amount to Connect Airways. The new airlines’ shareholders are Stobart Air, Virgin Atlantic and Cyrus Capital Partners.

UK regional carrier flybmi ceased operations earlier this year. Air France announced a 15% cut in domestic capacity at regional subsidiary Hop! after years of steep losses.

In spite of their struggles, European regional airlines represent a significant market for aircraft OEMs. The Airbus A220, Embraer E2 and turboprop programs count on new European airline orders to bolster their order book.

Summary
  • A fragmented industry;
  • Another prevailing business models than in the USA;
  • Influence of geography and public transportation;
  • Dearth of latest generation aircraft orders;
  • External factors threatening the industry.

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Pontifications: Montreal facility is the next step for SpaceJet program

By Scott Hamilton

Sept. 23, 2019, © Leeham News: Mitsubishi Aircraft Corp (MITAC) last week opened a new office facility in Montreal intended to initially support certification of the M90 regional jet and participate in the development of the M100 and M200 follow-on airplanes.

The M90 entry-into-service is targeted for next year.

Japan’s regulatory agency, JCAB, hasn’t certified a new airliner since the turbo-prop YS-11 of the 1960s. Japan’s aerospace industry developed several military aircraft, but none of these required civilian certification.

Alex Bellamy, the chief development office of the M-Series program, called SpaceJet, said, “The development of this [Montreal] center is the last of the piece of the puzzle” to certify the M90 and advance what was originally known as the MRJ program.

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