Leeham News and Analysis
There's more to real news than a news release.
US ponders Russia sanctions, some affecting US aerospace
Oct. 27, 2017, © Leeham Co.: The US is considering new trade sanctions against Russia, and Russia is considering retaliatory sanctions, that could have major implications in US aerospace—including on Boeing.
The US sanctions would be for meddling in the US presidential election in 2016 and for activities in Eastern Europe. The Russian sanctions are a tit-for-tat retaliation if the US sanctions are adopted.
Among the Russian companies that may be targeted:
Bjorn’s Corner: Aircraft drag reduction, Part 2
By Bjorn Fehrm
October 27, 2017, ©. Leeham Co: After a detour over Airbus’ A330neo first flight last Friday, we now continue with aircraft drag. We divided drag in two classes last time: drag from size and drag from weight.
These drag effects were not discovered at the same time. To make it more informative, we will mix in how aircraft designers uncovered these drag types over time. It took them centuries to understand what held their flying devices back.
Figure 1. The first aviator, Otto Lilienthal, with his glider 1895. Source: Wikipedia.
Bombardier upbeat on CSeries deal, but Moody’s sees higher risk of debt default
Oct. 26, 2017, © Leeham Co.: Bombardier and Airbus put a positive face on the former’s acquisition of 50.01% of the CSeries program, but Moody’s credit rating service wasn’t impressed.
The agency downgraded Bombardier’s already poor credit rating and changed the outlook to Negative from Stable.
Moody’s changed the “Corporate Family rating (CFR) at B3 from B2, its probability of default rating to B3-PD from B2-PD, and its senior unsecured rating to Caa1 from B3. The company’s speculative grade liquidity rating is affirmed at SGL-2. Bombardier’s rating outlook has been changed to negative from stable,” it announced Tuesday.
“The downgrade reflects our expectation that Bombardier’s leverage will remain high through 2019 and its ability to generate positive cash flow in that year has headwinds related to the potential delay of C Series plane deliveries,” said Jamie Koutsoukis, Moody’s analyst.
The press release may be found here.
Singapore airlines increases order for 787-10
By Bjorn Fehrm
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Introduction
Oct. 26, 2017, © Leeham Co.: Singapore airlines increased its order for Boeing’s 787-10 from 20 to 39 this week. The first aircraft for the airline rolled off the assembly earlier this month. It will now be prepared for delivery, flying out to Singapore on the new year.
The 787-10 is essentially a 787-9 which can take more passengers. By it, the cost per passenger goes down.
How much better? By comparing with the closest competitor, Airbus A350-900, we can learn by how much.
We will use our performance model to compare the aircraft. It’s a bit apples and oranges, because the A350-900 is a long-range airliner with 8,000nm range, and the 787-10 sacrifices the range of the -9 variant to carry more passengers.
But it’s interesting to see how this sacrifice pays off in efficiency on the type of routes the 787-10 was designed for.
Summary:
- The 787-10 is optimized to carry 330 passengers out to 6,400nm. It does this with a well-packaged fuselage and the wing of the smaller 787-9.
- The A350-900 is larger. It has a larger wing, to fly longer. And its fuselage diameter brings more passenger comfort, especially in economy.
- With both built with weight-saving carbon fiber technology, it’s not surprising the 787-10 is lighter, despite holding a row more of passengers.
- Weight and size always cost fuel. The difference in fuel burn is consistent with the difference in aircraft capabilities.
Boeing earnings: strong 3Q, 9 months, first look at Global Services
Oct. 25, 2017: Boeing announced strong earnings for the third quarter and nine months ending Sept. 30, including the first break-out of Boeing Global Services.
The press release may be seen here.
JP Morgan’s initial take:
Airbus working on new Sharklets for A350
By Bjorn Fehrm
October 25, 2017, © Leeham Co: Airbus is working on further extending the range of the A350-900 and -1000. The company is quietly testing an extended Sharklet, which will extend the aircraft’s wingspan.
An A350-900 test aircraft is flying since last week with the larger Sharklet, Figure 1. Jujug Spotting in Toulouse caught the test and we have the right to show the pictures.
Figure 1. A350-900 test aircraft flying with larger Sharklets. Source: Jujug Spotting.
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Boeing-Embraer venture in response to Airbus-Bombardier? Don’t count on it
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Introduction
Oct. 23, 2017, © Leeham Co.: With the tie-up announced last Monday between Airbus and Bombardier for the CSeries, speculation immediately turned to whether Boeing and Embraer will join forces in some fashion in response.
The speculation is natural. Boeing and Embraer have had several commercial agreements, mostly on the defense side but also in eco-research. But as yet, there hasn’t been a tie-up involving the successful E-Jet program.
Embraer E195-E2.
Don’t look for anything soon that would be a meaningful response to the Airbus-CSeries deal.
Summary
- Boeing needs a response in the 125-150 seat sector in which the 737-7 MAX languishes and with which the CS300 competes.
- Boeing has no product offering in the 100-125 seat sector. Embraer doesn’t need Boeing’s help here. The E175-E1 continues to sell and it meets US Scope Clauses.
- The Embraer E2 program’s first delivery is April next year.
- Embraer isn’t about to proceed with a new airplane program in the 100-150 seat sector, which is Boeing’s product gap.
Pontifications: Boeing’s focus on going to Mars
By Scott Hamilton
Oct. 23, 2017, © Leeham Co.: New Orleans: Going to Mars is a daunting task, says John Shannon, a Boeing vice president and program manager of the SLS
John Shannon of Boeing. Photo via Google images.
program.
But it’s one of the greatest and most exciting challenges of today’s science community.
In a speech before the annual conference of the Aerospace Alliance Oct. 12 in New Orleans, Shannon used illustrations to explain the challenges of going to Mars. Some of the art he used are contained in this presentation (NASA Space Launch System). Boeing did not make its presentation available.
The SLS, or Space Launch System, is larger than the Saturn 5 rocket used in the Apollo astronaut and Skylab space programs in the 1960s and 1970s. It was used to send Apollo to the moon and it was the only rocket capable of launching beyond low earth orbit.
Boeing is building the rocket, which will be capable of sending supplies to Mars, followed by astronauts.
Bjorn’s Corner: Airbus A330neo flight test starts
By Bjorn Fehrm
October 20, 2017, © Leeham Co, Toulouse: The Airbus A330neo flew its first flight yesterday. The aircraft lifted off from Toulouse Blagnac Airport in front of invited airline customers, suppliers and media. It landed after a successful four-hour mission.
We’ll take the opportunity to look at the A330neo changes and its flight test program. We also look at the drag reducing changes from A330ceo to A330neo.
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Boeing ponders restart of 767-300ER passenger line
Oct. 19, 2017, © Leeham Co.: Boeing is nearing a decision whether to restart the 767-300ER passenger line, LNC has learned.
The company is in discussions for 50-60 aircraft, market intelligence indicates.
Boeing declined comment, saying it does not discuss conversations with customers.
United Airlines Boeing 767-300ER. Photo via Google images
But sources indicate that the prospect of restarting the 767-300ER passenger line could serve as interim lift until the prospective entry-into-service of the Boeing New Midrange Aircraft, now commonly called the 797, for the Middle of the Market sector.
LNC on Aug. 14 speculated that relaunching the 767-300ER could be a good tactical move on Boeing’s part.