Leeham News and Analysis
There's more to real news than a news release.
Airbus, Boeing cost-cutting
Sept. 20, 2016: Airbus is planning cost-cutting measures to offset program write-offs and delivery delays, according to The Financial Times.
One of these delays involves the well-publicized problems with the Pratt & Whitney Geared Turbo Fan engine on the A320neo.
The CEO of United Technologies, parent of PW, last week said engine deliveries could fall 50-100 engines short of the 200 originally projected for the year, with a likely shortfall of about 50.
The A320neo “gliders” (as an Airbus executive put it) are well known. Bombardier also said it will deliver about half the number of CSeries this year because of GTF issues.
Sam Pearlstein, the aerospace analyst at Wells Fargo, had this synopsis:
Pontifications: A380 “oh-woe-is-me” valid, if premature
By Scott Hamilton
Sept. 19, 2016, © Leeham Co. The real (very boring) headline should be: “Aircraft lease reaches end.”
This was the wry comment by Alasdair Whyte of Aircraft Investor last week, reporting on media coverage of Singapore Airlines’ decision to return its first Airbus A380 at the end of its lease term.
The “oh-woe-is-me” series of media stories ignored that Singapore routinely flips its fleet about every 10-12 years. SQ also has five A380s on order that, wonder of wonders, arrive as the earliest models become of age.
It is particularly distressing that one trade publication that should know better jumped on the woe-is-me bandwagon.
Russian-Chinese wide-body: Aircraft performance
By Bjorn Fehrm
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Introduction
September 19, 2016, ©. Leeham Co: In Part 4 of the article series, we put together an assumed complete Chinese-Russian wide-body aircraft with fuselage, wing, engines, etc. It is now time to understand what kind of performance that can be expected, given the data we have from the wide-body partners, Russia’s United Aircraft Corporation (UAC) and the Commercial Aircraft Corporation of China (COMAC).
Figure 1. Concept for new widebody airliner. Source: United Aircraft.
We will combine these data with the ones we have deduced as plausible to fill the gaps, given the time frame and technology level that UAC and COMAC intend to use.
Out will come a first estimate of what kind of performance such an aircraft can have in terms of efficiency and payload versus range capability.
Summary:
- We can use all the data we have gathered to make a first estimate of the efficiency of the Russian-Chinese wide-body.
- We also have enough information to do a first payload-range diagram and to compare that with the diagram for Boeing’s 787-9.
Bjorn’s Corner; The Russian civil aircraft companies
September 16, 2016, ©. Leeham Co: In our Corners on East bloc aeronautical industries, we will now look at the main Russian civil aircraft companies. There is one overall company since 2006, United Aircraft Corporation (UAC).
This is a state-owned holding which incorporates 30 of the main companies from the Soviet times, employing 100,000 people. The aim is to coordinate and optimize Russia’s project and production resources around the present aircraft and the future projects that Russia can afford to drive.
Figure 1. Map of UAC Companies in Russia outside of Moscow region. Red markers are MRO. Source: UAC.
UAC consolidates several company groups that were formed after the fall of the Soviet Union 1990 and up to the formation of UAC in February 2006.
We will now dissect the main UAC groups and companies that are involved in civil aircraft development and production. Read more
Boeing CEO reiterates production targets
Denis Muilenburg, CEO of The Boeing Co.
Sept. 15, 2016, © Leeham Co.: The CEO of The Boeing Co. is sticking with current guidance for production rates through the end of the decade despite “hesitation” in wide-body orders.
Dennis Muilenburg, speaking at a Morgan Stanley conference, said Boeing Commercial Airplanes will move up from today’s delivery stream of around 740-750 aircraft to “well over 900.”
Russian-Chinese wide-body: The aircraft, Part 4
By Bjorn Fehrm
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Introduction
September 15, 2016, ©. Leeham Co: In Part 3 of this series, we identified the type and size of wing we would have on a new Russian-Chinese wide-body. It’s now time to go through all the considerations around the engines for the aircraft.
Figure 1. Concept for new widebody airliner. Source: United Aircraft.
The aircraft would enter the market around 2025. We would have to decide on what size engine that would be needed, what engines would be available at the time and could this project motivate any new engine developments.
Summary:
- The Russian-Chinese wide-body as outlined would require engines in the size class of the Boeing 787-9/10.
- GE and Rolls-Royce have been mentioned as engine suppliers. The question would be: will they offer updated 787 engines or new designs and will Russia compete with its announced engine project for the aircraft?
The MAX’s first mission: Cross the Atlantic
By Bjorn Fehrm
14 September 2016, ©. Leeham Co: During 2014, we wrote several articles on what could be a good replacement for the Boeing 757-200Ws operated on trans-Atlantic missions. One of the aircraft we looked at was Boeing’s 737 MAX line.
We found that the most promising variant was the 737 MAX 8. It has a standard range without extra tanks of 3,600nm. Its practical maximum network range would be critically dependent on the cabin configuration. The best configuration would be with a light cabin such as that an LCC would use for transatlantic service—that is, not including heavy, lie-flat seats, but rather seats that might be configured with extra legroom and perhaps greater reclining ability. At the time, we looked at Norwegian Air Shuttle (NAS) as an example.
Figure 1. Norwegian Air Shuttle 737 MAX 8 artist impression. Source: Boeing.
Flight International now reports in their 13-19 September print magazine that Norwegian might be the first taker of the 737 MAX and that the missions would be trans-Atlantic.
The MAX 8 program is running ahead of schedule. Planned Entry Into Service (EIS) was summer 2017 with Southwest Airlines. Southwest still plans to take delivery of their first 737 MAX 8 at that time with operational service starting in September.
But Boeing is ready to deliver 737 MAX 8s as early as March 2017. The customer for these aircraft would be Norwegian and the planned use should be flights between Europe and US East coast. This means the first mission for the “short haul” 737 MAX should be to cross the Atlantic. Read more
Two analysts, two very different views of Boeing free cash flow
Sept. 13, 2016: Two aerospace analysts took a look at Boeing’s free cash flow estimates for the next five years and came away with very different conclusions.
Cai von Ruhmor of Cowen & Co. believes the 787, 737 MAX and KC-46A programs will more than offset declines in the 777 Classic cash flow and increased spending on its successor, the 777X. Von Rohmor maintains an Outperform (Buy) rating on the stock.
David Strauss of UBS looks at the data and concludes the FCF will decline, most notably as the 777X cash outflow ramps up ahead of deliveries in 2020. Strauss has a Neutral (Hold) on the stock.
Boeing’s transition to more automation
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Introduction
Robots drill holes for fasteners. Boeing photo via Google images.
Sept. 12, 2016, © Leeham News: Boeing is on a transition to improve manufacturing efficiency that will take years to complete.
Dominic Gates of The Seattle Times Sunday provided a detailed comparison between the Airbus wing production plant in Broughton, Wales, and Boeing’s 777X wing production plant in Everett (WA).
The Broughton facility is a unit of ElectroImpact of Mukilteo (WA), next to Everett’s Paine Field, where all of Boeing’s wide-body assembly is done. ElectroImpact also is a supplier to Boeing.
Boeing is also adding robotics to the 777 Classic assembly process, from wing-painting to riveting. The latter has some glitches, Gates recently reported. Boeing officials blame delays and traveled work on a three-month strike by supplier Triumph Group. The robotics on the Classic are getting their baptism in advance of becoming the principal method of assembly on the new 777X, which begins in 2018.
Finally, or perhaps not, Boeing began a transition to more automation with the assembly of the 737 MAX. A dedicated, third assembly line was created for the MAX that includes more efficiencies.
Summary
- Boeing, which began shifting to Lean Production and Six Sigma principals a decade or more ago, has made great strides.
- But integrating advanced, automated assembly into mature programs in old factories has its disadvantages to “greenfield” sites and new airplane programs.
- Opportunities to make great leaps forward come with the prospective Middle of the Market airplane and the replacement for the 737.
Pontifications: “Sully” sullies NTSB
By Scott Hamilton
Sept. 12, 2016, © Leeham Co.: Sully, the movie about the miracle of the successful water landing of US Airways 1549 on the Hudson River in New York City, sullies the National Transportation Safety Board.
Apparently not content with the gripping drama of the flight’s emergency itself and the dramatic rescue of all 155 souls on board, the movie gins up an NTSB out to hang Capt. Chesley Sullenberger (Sully) and co-pilot Jeffrey Skiles.