Is Long-Haul LCC viable? Part 2

By Bjorn Fehrm

April 04, 2018, © Leeham News.: In the first article about Long-Haul LCC and if it’s a viable business, we looked at ticket pricing strategy used by airlines to maximize revenue on a route. Now we look at the cost side of the equation.

The cost level for a Long-Haul LCC is of utmost importance.  A lower cost level than the Legacy carriers flying the same routes is the only way the company can compete. It’s seldom it offers origins or destinations not offered by other airlines. Its mission is to offer a popular air transport service at a lower cost.

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Don’t look for commercial BWB airplane any time soon, says Boeing’s future airplanes head

April 3, 2018, © Leeham News: New airplanes for the foreseeable future are unlikely to look radically different than the tube-and-wing configuration that’s been around since the dawn of manned flight.

Yes, there are unmanned aerial vehicles (UAVs) that look very different. Yes, there are the B-2 and B-21 bombers that are flying wings.

Scaled Blended Wing Body airplane. Source: NASA.

And, yes, there is the Blended Wing Body concept that was created by McDonnell Douglas and tested, in scaled-size models, by Boeing, which acquired MDC in 1997.

But don’t expect to see a BWB either as a freighter or as a passenger airplane any time soon, says Boeing’s VP of Product Development and Future Airplane Development.

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Boeing’s strategy to de-risk design, production

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Introduction

April 2, 2018, © Leeham News: Boeing’s painful experience the with the development, design, production and grounding of the 787—costing billions of dollars in overruns and penalties with a delay of nearly four years—led to a major effort to de-risk future airplane development.

The 787 experience led to a pause that resulted in pursuing derivatives of the 737 MAX and 777X instead of developing new airplanes to replace these aging platforms and leap ahead of Airbus.

Now, poised to launch its first all-new airplane program in 15 years, Boeing continues to de-risk its production.

Summary
  • De-risking production means diversifying supplier base, bringing work in-house.
  • De-risking is changing the fundamental design-production nexus.
  • De-risking is innovating and cutting costs to meet new competition.

The Southeast Aerospace and Defence Conference will examine the transformation in production. Click here for more information.

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Pontifications: The Airbus-Boeing chess game

By Scott Hamilton

April 2, 2018, © Leeham News.: While Boeing edges toward a decision whether to launch the New Midrange Aircraft, the NMA or 797 as it’s known, Airbus ponders how to respond—either pre-emptively or after Boeing’s move.

Responding with an A321neo Plus is widely known, but it’s also logical the Airbus would look at enhancements for the A320neo. Less likely but probably studied are also enhancements to the A319neo. Studies, after all, pre-date the agreement last fall with Bombardier to acquire 50.01% of the C Series program and Airbus clearly understood that the present A319neo is as unattractive as was the original design of the Boeing 737-7.

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Embraer gears up for E2 delivery; a look at the 100-150 seat sector demand

March 31, 2018 © Leeham News: The first Embraer E2 jet will be delivered April 4, to Norway’s Wideroe Airlines.

The E190-E2 seats 114 passengers in one-class, 29-inch pitch and 106 at 31-inch pitch, putting it at the low end of the 100-150 seat sector that is often maligned as a Bermuda Triangle for airplanes of this size.

Wideroe of Norway takes delivery of the firzst Embraer 190-E2 April 4. Photo: Embraer

The E190-E2 competes with the Bombardier CS100, a 110-seat airplane in one-class. Neither Airbus nor Boeing have a competing product. Each offers a larger airplane in the 125-150 sector, the A319neo and 737-7 MAX respectively. Embraer and Bombardier offer the E195-E2 and CS300 in this sub-sector.

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Bjorn’s Corner: Aircraft lift, Part 2

March 30, 2018, ©. Leeham News: In the last Corner, we described how lift is produced on the aircraft’s wings. Now we continue with studying the lift a bit further.

We explore the effect of angle of attack on lift for a wing and the resulting pressure distribution.

Figure 1. Lift of wing when the angle of attack varies. Source: Leeham Co.

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Is Airbus’ A330-800 the longest range widebody under 300 seats?

By Bjorn Fehrm

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Introduction

March 29, 2018, © Leeham News: Boeing’s 787-9 has opened new ultra-long routes such as Qantas’ first flight from Perth in Australia to London Heathrow last weekend (a 7,900nm, 17-hours flight). The 787-9 has been the undisputed long-haul star under 300 seats, with Airbus A350-900ULR underbidding the Boeing 777-200LR’s fuel burn for over 300 seats ultra-long haul flying.

But the competition for below 300 seat ULR alternatives will change in two years. Airbus A330-800 is then available in its 251t version. It will fly longer than the 787-9, according to Airbus.

The range of 7,635nm given by Boeing for the 787-9 and 8,150nm by Airbus for the A330-800 is not using the same seating and fuel reserve rules. We use our performance model to weed out the differences, to make an apples-to-apples comparison of the 787-9 and A330-800 as ULR aircraft.

Summary:

  • The choice between the 787-9 or A330-800 for Ultra Long-haul Routes (ULR) will depend on the passenger loads which can be expected.
  • For thin routes, the A330-800 will be the cheaper aircraft to operate.
  • It will also fly longer on thin routes, as its large tanks mean passenger capacity can be traded for more fuel further than for a 787-9.
  • When the 787-9 can be filled, it’s the choice with the better seat-mile cost, as it should; it’s the larger aircraft, spreading fixed costs over more paying passengers.

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Is Long-Haul LCC viable?

By Bjorn Fehrm

March 28, 2018, © Leeham News.: Robert L. Crandall, the former CEO of American Airlines, questioned the viability of Long-Haul LCC (LH-LCC) in a discussion with LNC two weeks ago.

Given the limited network of a dedicated Long-Haul LCC like Norwegian Air Shuttle (Norwegian) or WOW air, the legacy airlines can spare as much capacity as is needed to block the LH-LCCs from gaining traction on attractive city pairs. “At some stage, it’s going to be who’s going to be prepared to lose the most money,” was Crandall’s verdict.We shall examine the LH-LCC model and its chances in a series of articles. Here some first observations.

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Spies and industrial spying

By Scott Hamilton

Scott Hamilton

March 27, 2018, © Leeham News, Bainbridge Island (WA): The unexpected US order to close the Russian Consulate in Seattle this week set off a media frenzy in this city because two reasons cited were the proximity of the consulate to Boeing and two US naval bases, Bremerton and Bangor.

There is a third, smaller one, in Everett, but this wasn’t mentioned.

Bremerton is a major repair-and-overhaul base for ships, ranging from aircraft carriers to submarines to frigates and support ships.

Bangor is home to Trident nuclear missile subs and the spy sub, USS Jimmy Carter.

I live on Bainbridge Island, a stone’s throw to Bangor (ground zero in a North Korean nuclear missile attack?) and a 45-minute drive to Bremerton. It’s 45 minutes from here to Boeing Field via ferry and car.

Boeing, of course, is the principal home to Boeing Commercial Airplanes. The commercially-based P8 Poseidon and the KC-46A tankers are built here.

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Supply chain stress, number of variants challenge 737 production rate hike

March 27, 2018, © Leeham News: Current production rates and complexity in the transition between the Boeing 737 NG and 737 MAX is straining the supply chain feeding Spirit Aerosystems, its CEO told a JP Morgan conference March 14.

The supply chain stress makes it challenging to increase production rates. Spirit, which builds the 737 fuselage for Boeing, deployed SWAT teams to key suppliers that are struggling.

Tom Gentile, Spirit’s CEO, did not name the suppliers.

Boeing is going to a production rate of 52/mo this year and 57/mo next year. The company is studying rate hikes up to 70/mo.

The supply chain and production will be among the topics at the Southeast Aerospace & Defence Conference June 25-27 in Mobile (AL).

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