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 21. May 9, 2025
- Does an A220-500 need a new wing and engines? Part 2. May 8, 2025
- Embraer downplays tariff impact on 2025 results May 6, 2025
- JetZero readies effort for private equity fund raising May 5, 2025
- Bjorn’s Corner: Air Transport’s route to 2050. Part 20. May 2, 2025
Mitsubishi moves would make a lot of sense
By Bryan Corliss
Analysis
June 11, 2019, © Leeham News: © — A deal by Mitsubishi Heavy Industries to acquire the CRJ program from Bombardier would make abundant sense for Mitsubishi Aircraft Corp – taking a struggling competitor off the board, acquiring hard-to-find human capital assets, and taking over an established North American American supplier network and a global product support system.
And recent unconfirmed reports that MITAC also is considering a North American final assembly site would make a lot of sense for a company that’s looking to cut production costs – and get closer to some likely key customers.
Yet while everyone in the industry is talking about the potential links between MITAC and the Montreal-based CRJ, nobody’s saying much about the company’s future in Moses Lake (WA). But overlooking Mitsubishi’s growth over the past two years there would be a mistake, because the company certainly is acting like it intends to plant roots there in the Eastern Washington farm country.
- A North American assembly site would bring significant savings;
- Mitsubishi and Bombardier already have close ties; and
- Signs point to MITAC settling in at Moses Lake for the long haul.
Embraer in holding pattern awaiting JV approvals
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Introduction
June 10, 2019, © Leeham News: Embraer is in a holding pattern of sorts.
It’s awaiting international regulatory anti-trust approval for the joint venture with The Boeing Co.
It can’t coordinate with Boeing about synergies until these approvals come.
Its leadership is identifying areas that, from its perspective, can lead to synergies.
Some key campaigns for the E-Jet E2 appear to be on hold while customers wait for Boeing and Embraer to join in order to see how pricing may be reset, competition with the Airbus A220 shapes up, what synergies between the E2 and Boeing’s 7-Series product lines might emerge and how Embraer’s Services unit integrates with Boeing Global Services.
Pontifications: Melancholy about Embraer’s 50th year
By Scott Hamilton
June 10, 2019, © Leeham News: Embraer is 50 years old Aug. 19.
This must be the classic case of mixed feelings. By the end of the year, if regulators approve, the marquis business unit, Commercial Aviation, will be spun off and the Embraer name for it disappears into Boeing Brasil-Commercial (BB-C).
Boeing will own 80% of the new joint venture and Embraer retains 20%. Boeing has the governance and chairman. Embraer’s CEO of Commercial Aviation becomes president and CEO of BB-C, but the direction now will clearly be set by Boeing.
Sixty percent of Embraer’s services unit goes into BB-C.
Embraer and Boeing also created a second JV, for the KC-390 program. Embraer retains 51% and Boeing gets 49%.
Embraer retains full control over the remaining defense and business jet units.
Officials put a “best face” on the pending changes at Embraer’s pre-Paris Air Show briefings May 27-29, but they really could not mask the uncertainties and, to some degree, resignation about the future.
Bjorn’s Corner: Why Electric Cars work and Airliners don’t
By Bjorn Fehrm
June 7, 2019, ©. Leeham News: In last week’s Corner I wrote: “The reason electric cars work and airliners don’t is the Sky lacks Stoplights“.
The discussion was part of my previous series on Electric aircraft, but it was in the comment section. Here is a more exhaustive run through of the main reasons.
Figure 1. The Tesla electric car is a functioning replacement for a combustion engine car. Source: Tesla.
How useful is an Airbus A321XLR?
By Bjorn Fehrm
Subscription Required
Introduction
June 6, 2019, © Leeham News: There are growing rumors Airbus will launch the extended range A321XLR at the Paris Air Show on June 17th. The aircraft will get more fuel and takeoff weight to enable an A321 to fly longer routes, penetrating deeper into the US and Europe for a trans-Atlantic use case.
Operators can now choose between longer routes than for the A321LR or the same routes while carrying more passengers. We use our performance model to find out the limits of this trade.
Summary:
- The A321XLR turns the trans-Atlantic capability of the A321LR from coast to coast opportunities into a mid-US to mid-Europe capability.
- As the seat mile cost of the A321LR and A321XLR are competitive with the A330neo and Boeing 787, the A321XLR opens for thin and long service to several new city pairs.
Stabilizing 737 production is Boeing’s priority, CFO says
By Dan Catchpole
June 5, 2019, © Leeham News: Boeing is focused on smoothing out 737 production at 42 aircraft a month for now. Any decision to returning production to 52/month is well down the road, Boeing CFO Greg Smith said Wednesday at the UBS Global Industrials and Transportation Conference in New York.
“It’s going to be all about stability,” Smith said. “And stability is not just about on schedule but ensuring that we’ve got predictability and accuracy that’s more finite than what it’s been in the past.”
The company had planned to step up production from 52/month to 57/month in June or July. Boeing slowed down production of the workhorse single-aisle in April after a second 737 MAX crashed shortly after takeoff. At the time, it cited the accidents as the reason for slowing 737 production. However, the aerospace giant already had been struggling with production disruptions prior to the crashes. The biggest headache came from slow deliveries from engine-maker CFM, as LNA reported in April.
Industry insiders at the Aviation Week MRO Americas conference in April said Boeing already planned to hit 57/month in September. However, at Wednesday’s investor conference, Smith’s sidestepped any question about when 737 production could reach that pace.
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.
I-90 Conference: Additive manufacturing is about to change everything
By Bryan Corliss
June 5, 2019, © Leeham News, Coeur d’Alene (ID) — Within a decade, 3-D printing will begin to revolutionize the way companies fabricate and assemble aircraft–and just about everything else humans manufacture.
That was the message delivered by panelists at the I-90 Aerospace Corridor Conference & Expo.
The conference, for aerospace companies in eastern Oregon and Washington, northern Idaho and western Montana, was held May 27-28 in Coeur d’Alene (ID).
Companies are experimenting with the current generation of the technology now, said David Minerath, the president of Quest Integration, based in Post Falls (ID), whose company sells 3-D modeling and printing technology to manufacturers.
“We do have a lot of printers at aerospace companies, but they’re very sensitive about where these parts are going,” Minerath said.
Costs are coming down, he said. With units costing as little as $2,000 apiece, it’s possible for companies to stack five together in a room running parts.
“You’re getting close to low-rate production,” Minerath said.
And it’s easy, he said. “It’s like you’re doing ‘file, print’ to your laser printer.”
- “Additive” technology literally the opposite of current process
- Idaho company has patents on fast-curing process
- Will allow changes in how parts are produced and assembled
2019 Paris Air Show Preview
By Vincent Valery
Subscription Required
June 3, 2019, © Leeham News: The 2019 Paris Air Show kicks off in two weeks at the Le Bourget Exhibition Center.
In this preview, we will go over what to expect from commercial aircraft OEMs.
Pontifications: 50×2
By Scott Hamilton
June 3, 2019, © Leeham News: Airbus and Embraer are 50 years old this year.
Airbus broke out the party hats last Wednesday. It arranged a formation flying of all its in-production aircraft, including the Beluga XL. It launched a website microsite with its history. A new book, Airbus, The First 50 Years, has been issued. A celebration is planned for the Paris Air Show.
Embraer’s anniversary is Aug. 19, so at this point, its party plans haven’t been solidified, but there will likely be something at the Paris Air Show. Embraer plans to have its new specially painted E195-E2 at the air show.