Leeham News and Analysis
There's more to real news than a news release.
Pontifications: Supply chain meltdown
By Scott Hamilton
Aug. 6, 2018 © Leeham News: It happened to Airbus. It sort of happened to Boeing. It was bound to happen in a much bigger way to Boeing, and it has.
Some 40 737s are now sitting around the Renton assembly plant in a major supply-chain meltdown.
This follows the highly publicized, two-year long supplier meltdown at Airbus as Pratt & Whitney and CFM fell down on engine deliveries and technical problems for their GTF and LEAP-1A engines, respectively.
Bjorn’s Corner: Largest navigation change since radar, Part 8
August 03, 2018, ©. Leeham News: In seven articles we have discussed the largest change in how air navigation is done since the Second World War when Radar was invented.
It’s time to summarize the changes and what it will mean for how we fly in the future.
Figure 1. Airbus Vahana Air Taxi concept. Source: Airbus.
Will increasing fuel prices revitalize new aircraft sales?
By Bjorn Fehrm
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Introduction
August 2, 2018, © Leeham News.: As outlined in our Monday article the changing fuel price is affecting fleet plans. With increasing cost of fuel one would expect the airlines to order more new fuel-efficient aircraft.
The reaction from some US carriers has been the opposite, deferral of deliveries of new aircraft. While this might be a short-term reaction, long-term rising fuel prices will favor new, fuel-efficient aircraft. The fuel price level when this happens is today’s subject.
Summary:
- There are more factors than fuel and capital costs which influence buy new or keep old fleet, but the fuel and capital costs are the key variables.
- We also explore if there is a difference in crossover fuel price between Narrowbody or Widebody fleets.
Embraer 2Q2018 results: KC-390 problem turns quarter red.
By Bjorn Fehrm
July 31, 2018, ©. Leeham News: Embraer presented its 2Q2018 results today. The company posted a loss as the KC-390 program was reset financially after a prototype was damaged in ground testing during the quarter.
The Military division’s KC-390 problem came on top of forecasted weaker 2018 deliveries in both the Commercial and Business jet divisions. A $110m company profit was turned into a $17.7m loss for the quarter by a $127m KC-390 program charge.
Pontifications: thyssenkrupp’s international expansion
By Scott Hamilton
July 30, 2018, © Leeham News: thyssenkrupp, the German supplier, is a mouthful to say.
Even its name is different, using the small “t” rather than a capital “T”.
Being from Chicago, I suitably butchered it when I met at the Farnborough Air Show with its CEO, American Laura Holmes.
I won’t even attempt to write how I mangled the name, but I didn’t feel too bad when I later discovered there is a 15 second YouTube video on its pronunciation: two-sen croup (in German) or tiss-in krup [as in pup] (in English).
Regardless, the company is in an expansion mode internationally—including in Africa.
Bjorn’s Corner: Largest navigation change since radar, Part 7
By Bjorn Fehrm
July 27, 2018, ©. Leeham News: Last week we discussed new air navigation procedures which can benefit from the universal adoption of ADS-B.
Now we shall discuss some other needed developments for air navigation. The complement, and long-term replacement, of radio traffic with text messages.
Figure 1. CPDLC display in an Airbus A330. Source: Google images.
Airbus posts strong earnings; ‘hell of a ride’ ahead, says CEO
By Dan Catchpole
J
uly 26, 2018, © Leeham News: Airbus posted strong earnings for the year’s second quarter, thanks to better profitability on its A350 and A320 programs. Investors rewarded the news by pushing Airbus share prices to a 52-week high Thursday morning.
However, Airbus lowered its earnings for the full year due to its takeover of Bombardier’s troubled C Series program, since renamed the A220. Airbus plans to deliver 18 of the single-aisle jetliners this year.
The Southeast ramps up to challenge Washington State in aerospace
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Introduction
July 26, 2018, © Leeham News: The US Southeast continues its aggressive expansion in aerospace.
Washington State plots to win the assembly site for the prospective Boeing New Midmarket Aircraft and expand its space footprint.
In a way, it’s a defensive holding game for Washington, which faces competition from more than a half dozen states where the cost of doing business is cheaper and the regulatory environment is friendlier to business.
Summary
- Washington State doesn’t “get it,” say some suppliers and a trade group.
- Gearing up for NMA competition.
- Expanding the Southeast aerospace footprint.
Boeing cash flows generously, KC-46A snarfs up some of it
By Dan Catchpole
July 25, 2018, © Leeham News: The cash keeps flowing at Boeing. The aerospace giant posted free cash flow of $4.3bn for the second quarter of the year, despite recording $426m in costs related to its delay-ridden KC-46 tanker program.
Despite posting strong earnings, the charge rattled investors, who drove Boeing’s share price down in early trading Wednesday.
Boeing continues to work on closing the business case for its New Midsize Airplane (NMA), a business case unlike any the company has done before, Boeing chief executive Dennis Muilenburg said in a conference call with reporters and investment analysts.