Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
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- Bjorn’s Corner: New engine development. Part 4. Propulsive efficiency April 19, 2024
Airbus results depressed from continuing delivery delays
Oct. 26, 2016: Airbus Group reported that its nine months financial results continue to be depressed by delivery delays in the A320neo and A350-900 programs.
The Group reported revenues of €43bn for the period and charges that lowered profits.
Net cash fell by nearly €5bn from the same period last year. Earnings at the Commercial unit fell 59% YOY.
The press release with detailed results may be found here.
Pontifications: Rockwell buying B/E Aerospace: getting out while the getting is good?
By Scott Hamilton
Oct. 24, 2016, © Leeham Co.: An announcement Sunday by supplier Rockwell Collins (NYSE:COL) that it will acquire B/E Aerospace (NYSE: BEAV) for $6.5bn caught analysts by surprise. The price tag rises to $8.3bn when assumption of BEAV’s debt is included.
The surprise is not so much BEAV is selling itself. A few years ago, BEAV sold of one of its division and analysts since then believed an exit strategy was underway for the principal owners of the company.
The surprise is that the buyer is Rockwell, a supplier that has little in common with BEAV. A slide from Rockwell’s own investor presentation Sunday illustrates the point.
Rockwell will have an investors’ call Monday at 0830 EDT to further explain the merger.
Bjorn’s Corner: The Engine challenge
By Bjorn Fehrm
October 21, 2016, ©. Leeham Co: In our Corners on East bloc aeronautical industries, we could see that the hardest part to master in a new civilian airliner is the engine.
Both new airliners from Russia and China (Irkut MC-21 and COMAC C919) start their lives with Western engines.
Why is this so? What are the challenges that make engines harder to create than aircraft?
LEAP-1C which will be standard engine on COMAC C919. Source: COMAC.
We will spend several Corners on the main reasons that airliner engines are harder to do than aircraft. Read more
Seventeen new, derivative aircraft to see EIS through 2020
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Introduction
Delivery of the first Bombardier CS300, to AirBaltic, next week kicks off entry-into-service for 17 airplanes through 2020. Bombardier photo.
Oct. 20, 2016, © Leeham Co.: The past decade was a hive of activity as the Big Four OEMs launched new airplane programs and put the aircraft into service.
Airbus launched the A320neo, A330neo and A350 families. The A330neo is under production; the other two entered service early this year.
Boeing launched the 787 in late 2003 (outside the decade mark), rolled it out in 2007 and entered service with it in 2013. The 737 MAX was launched in 2011 and is in flight testing. The 777X was launched in 2013; components are in production.
Bombardier launched the CSeries in 2008; it entered service this year, after three years of delays.
Embraer launched the E-Jet E2 om 2013. Flight testing began this year.
New Entrants
These were supplemented by new entrants into commercial aviation: COMAC with its C919; Irkut with the MC-21; and Mitsubishi with the MRJ90. Of these, only the MRJ90 is flying. After more than two years of delays and several false starts, flight testing began in earnest this week at Moses Lake (WA) with FTA-1 (Flight Test Aircraft 1).
Development and new program launches have slowed, but the next decade is hardly going to be idle.
Summary
- Seventeen new aircraft or derivatives are scheduled to enter service through 2020.
- Five potential derivatives might see EIS through the same period.
- Three to five new or potential derivative aircraft might see EIS 2021-2025.
From zero to 10,000 in 50 years; can COMAC duplicate this achievement?
By Bjorn Fehrm
October 19, 2016, ©. Leeham Co: Airbus delivered its 10,000 aircraft last week (Figure 1), an A350-900 delivered to Singapore Airlines.
Delivering the 10,000 aircraft after 50 years of start of project is impressive, especially as the competition, Boeing Commercial Airplanes (BCA), the late McDonnell Douglas Corp and Lockheed Co, fought Airbus every step of the way.
Figure 1. Airbus 10,000th aircraft for Singapore Airlines. Source: Airbus.
We have a new player starting its 50 years, Commercial Aircraft Corporation of China, COMAC. It’s on its eighth year and the competitions’ sentiments are: “It will take long before they can compete, decades!”
Let’s compare with the rise of Airbus and see what can be learned. Will COMAC deliver its 10,000th aircraft in 50 years? Or in a shorter time? Read more
How Boeing is working to convert Qatar’s MAX LOI into a firm order
Boeing 737-8. Boeing photo.
Oct. 18, 2016, © Leeham Co.: It’s only a Letter of Intent, the agreement between Boeing and Qatar Airways for up to 60 737-8s.
Qatar announced the LOI two weeks ago because its CEO, the notoriously fickle Akbar Al-Baker, is royally pissed at Airbus over delays for the A320neo. Qatar was the launch customer for the airplane, ordering 50. Citing issues and delays with the Pratt & Whitney GTF engines, and other unspecified problems, Al-Baker refused to take delivery of four of the first aircraft.
He repeatedly threatened to drop the A320 order altogether, but then at the press conference announcing the LOI (along with other Boeing orders), he said he doesn’t walk from contracts.
Forget for the moment the contradiction.
Here’s how Boeing is working to convert the LOI into a firm order.
Pontifications: A good week for Boeing wide-bodies
By Scott Hamilton
Oct. 17, 2016, © Leeham Co.: Boeing had a very good week for wide-body orders last week. It recorded 42 orders for the 787 and 10 for the 777-300ER.
Thirty of the former and all of the latter came from Qatar Airways. There were 12 787 orders from “Unidentified,” which in this case was from China Southern Airlines. These were announced Wednesday but too late to show up on the weekly orders update posted Thursday.
787 Book:Bill
For the year, Boeing has 61 net orders for the 787, a healthy increase since the end of June, when the book-to-bill was a paltry 0.25 YTD. Even at 61, this is still a book:bill of just 0.42 for the 787, which has not had a book:bill of more than one since 2013. This means Boeing continues to burn off the backlog faster than it is booking new orders.
But it’s welcome news nevertheless in a year when there has been a dearth of wide-body orders.