Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- The BWB has a long way to go before flying passengers, freight May 12, 2025
- 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
Is Bombardier a stalking horse in Boeing complaint?
Analysis
May 17, 2017 © Leeham Co.: Is Boeing’s complaint against Bombardier over the Delta
Delta Air Lines CS100.
Air Lines CSeries deal merely a stalking horse for future action against Airbus?
This is the theory of one person LNC spoke with on the sidelines Tuesday at the annual Airfinance Journal Conference in New York.
Testimony in the Bombardier case begins this week.
Air industry uncertain about Trump policies
Adam Pilarski
May 17, 2017, © Leeham Co.: The US airline industry remains uncertain where the Trump Administration is going, said Adam Pilarski, chief economist of Avitas Aviation, at the annual Airfinance Journal conference in New York.
“There are huge differences between candidate Trump and President Trump,” he said. China was not declared a currency manipulator. There is no border wall. The US embassy has not been moved to Jerusalem. Trump now supports ExIm Bank and NATO.
“Let’s not get too involved in what he said, because he didn’t mean it,” said Pilarski.
Interest seen in Boeing’s “797,” says lessor
May 16, 2017, © Leeham Co.: Air Lease Corp., one of the world’s leading lessors, sees
John Plueger, CEO of Air Lease Corp.
a “quite a bit” of interest from its customers in the prospective Boeing Middle of the Market aircraft, says its CEO, John Plueger.
Speaking at the Airfinance Journal conference in New York today, Plueger acknowledged with some push from moderator Mark Streeter of JP Morgan that pricing needs to be in today’s dollars in the $70m-$75m range.
Special Report: Focus on the Boeing 737-10
Subscription Required
May 15, 2017: © Leeham Co.: It’s coming down to crunch time for Boeing to launch the 737-10 MAX.
There was the “soft launch” of the airplane at the March 2017 ISTAT conference in San Diego.
The Paris Air Show is around the corner. It’s next month, and Boeing officials want to launch the program there.
In a Special Report, Leeham Co. LLC is re-launching the magazine that was the foundation of the creation of Leeham Co. and Leeham News and Comment. The magazine, Commercial Aviation Report, or CAR for short, takes an in-depth look at the 737-10, its genesis and its competitive position against the Airbus A321neo.
Pontifications: Emirates profits drop 83%, MC-21 and more news last week
By Scott Hamilton
May 15, 2017, © Leeham Co.: It was a busy news week last week.
- Emirates Airline headlined its 29th consecutive year of profits, but downplayed an 83% decline.
- The Irkut MC-21 moved to the tarmac, an indication first flight may be coming shortly.
- Multiple media reports indicate that electronics flight ban from the Middle East may be extended in part to all of Europe.
- Boeing suspended test flights on the 737 MAX after CFM discovered some quality issues in some LEAP 1B engines.
Let’s look at these events.
Bjorn’s Corner: Keeping airliners operational. Part 4
By Bjorn Fehrm
May 12, 2017, ©. Leeham Co: Last week we explained how maintenance philosophies were developed for airliners, from Maintenance Steering Group one (MSG-1), through to Maintenance Steering Group 3 (MSG-3), today’s standard.
The way in which today’s complex systems shall be analyzed should be top down instead of bottom up. And safety concerns should be separated from economical considerations.
Figure 1. The first modern maintenance program was formed around the Boeing 747. Source: Wikipedia.
Now we will go through what this means in practice. We will develop a maintenance plan for a new aircraft, according to the latest standards.
But first, the structure of the work we have in front of us.
ISTAT Asia 2017: The fight for the lead
By Bjorn Fehrm
May 11, 2017, ©. Leeham Co: Airbus and Boeing had their customary presentation match at the second day of the ISTAT (International Society of Transport Aircraft Trading) conference in Hong Kong. Each OEM stuck to a theme throughout their presentations.
Boeing’s was “market leader.” As the one that delivered the most aircraft during 2016, Boeing had the right to the claim. Airbus countered with “value protection leader.” The neo success saves airlines from having to change aircraft families. Read more
Hong Kong, the future aircraft leasing gateway to China
By Bjorn Fehrm
May 11, 2017, ©. Leeham Co: We are attending the ISTAT (the International Society of Transport Aircraft Trading) conference in Hong Kong this week. The conference was opened by the Chief Executive for the Hong Kong region of China, Mr. C. Y. Leung. He gave an interesting perspective of the future of Hong Kong in the aviation finance market.
Hong Kong is the number four finance center in the world. But the present tax rules prohibits aircraft leasing companies to establish Hong Kong as their hub for China and Asia.
The companies cannot deduct the costs of the aircraft ownership from their lease revenue, for non-Hong Kong operators. This will now change. Read more
Regional aircraft for US Scope clause operations. Part 2.
By Bjorn Fehrm
Subscription Required
Introduction
May 11, 2017, © Leeham Co.: In the first article about the US regional aircraft market, we described the special rules that apply for outsourced regional airlines, operating for a mainline carrier. The mainline pilots limit the outsourcing via Scope clauses in their Union agreements to aircraft with 76 seats and 86,000lb Maximum Take-Off Weight (MTOW).
We identified potential aircraft that fit these restrictions in the first article. Now we examine their load carrying capability.
The MTOW limit sets a hard limit on how large aircraft can be used to house 76 seats. The mainline carriers want the regionals to mimic their domestic cabin classes in their aircraft. There shall be no disruption for a First class or Premium economy passenger whether on a mainline flight or on a feed flight to/from the hub.
The challenge is to accommodate the seating standard in the aircraft that come in question.
Summary:
- Mainline airlines want to replicate their three class cabins for all sectors of a network.
- This means the regional aircraft cabins shall offer First class, Premium economy and Economy sections.
- Only the larger aircraft we study can offer a three class cabin with 76 seats.
Welcome back, Commercial Aviation Report
May 15, 2017, © Leeham Co.: Welcome back, Commercial Aviation Report.
Commercial Aviation Report, or CAR for short, was launched Oct. 1, 1989, by Scott Hamilton, Chris Kjelgaard and Bernard Tilbury. The bi-weekly newsletter evolved into a magazine and later the creation of a monthly, Commercial Aviation Value Report.
It’s conference unit, Commercial Aviation Events, became one of the top aviation conference organizers. CAE created the first commercial aviation conference in Eastern Europe, after the fall of the Iron Curtain; and the first commercial aviation conference in China.
Read more
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Posted on May 15, 2017 by Scott Hamilton
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