Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- 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
- Bjorn’s Corner: Air Transport’s route to 2050. Part 20. May 2, 2025
ISTAT Day 1: Leahy’s biggest fear: producing enough planes to meet demand
Feb. 29, 2016, (c) Leeham Co: Aircraft lessors financed 48% of the Airbus deliveries in 
2015, with direct sales and sale-leasebacks, says John Leahy, chief operating officer customers for Airbus.
- We’re at the 2016 ISTAT AGM in Phoenix and will be reporting today and tomorrow on presentations and news from the sidelines.
“Lessors are a key and integral part of our strategy,” Leahy said. Airbus only financed 2% of its own products last year. Export Credit Agencies financed only half the numbers of Boeing, he said.
Leahy does not see a downturn any time soon.
ISTAT Day 1: Boeing developmental airplanes progressing
Feb. 29, 2016 (c) Leeham Co.: The Boeing 737 MAX rolled out on time, the 787-10 is in production and the 777-9 is in firm configuration, says Randy Tinseth, VP-Marketing for Boeing Commercial Airplanes.
- We’re at the 2016 ISTAT AGM in Phoenix and will be reporting today and tomorrow on presentations and news from the sidelines.
Boeing is watching oil prices, the global economy, geopolitical hot-spots, cargo demand and several other factors for the near-and long-term.
ISTAT Day 1: Used 777 values depend on engines, leases
Feb. 29, 2016 (c) Leeham Co.: The Boeing 777-200ER is not worth $7.7m or even $10m, but $37m to $47m, according to four appraisers who appeared today at the ISTAT AGM.
- We’re at the 2016 ISTAT AGM in Phoenix and will be reporting today and tomorrow on presentations and news from the sidelines.
Doug Kelly of the consulting/appraisal firm Avitas notes that the Rolls-Royce Trent-powered 777s are, indeed, the least desirable airplanes. GE or PW-powered airplanes commands a $7m premium, he said.
AerCap is selling 777-200ERs with leases attached for more than $50m, Kelly said.
ISTAT Day 1: There is uncertainty
Feb. 29, 2016 (c) Leeham Co.: “The world is changing very dramatically,” says Adam Pilarski, the economist for the consulting firm Avitas.
- We’re at the 2016 ISTAT AGM in Phoenix and will be reporting today and tomorrow on presentations and news from the sidelines.
Adam Pilarski of Avitas always looks like a sad basset hound but is one of the most entertaining speakers at the ISTAT AGM.
“It is changing in a way Hollywood couldn’t imagine,” he said. There is uncertainty.
Pilarski, who peppers his speeches to ISTAT with irreverent humor, pointed to Trump, Carson, Cruz and Sanders as changing the rules of the game.
Pontifications: Boeing sued over program accounting
By Scott Hamilton
Feb. 29, 2016, (c) Leeham Co.: It was inevitable: a class action lawsuit was filed last week against The Boeing Co., its top officers and directors over the investigation by the US Securities and Exchange Commission of the company’s program accounting.
The lawsuit was filed last Wednesday.
The lawsuit alleges “among other things, that defendants issued materially false and misleading statements and/or failed to disclose that: (i) Boeing’s use of program accounting for its 787 Dreamliner and/or 747 jumbo aircrafts relied on inflated sales forecasts; (ii) Boeing’s use of program accounting for its 787 Dreamliner and/or 747 jumbo aircrafts relied on understated estimates of production costs; and (iii) as a result of the foregoing, Boeing’s public statements were materially false and misleading….”
IRKUT MC-21 analysis, Part 3. The Russian engine alternative
By Bjorn Fehrm
Subscription required.
Introduction
Feb. 29, 2016, ©. Leeham Co: In two articles we have been looking at the new Russian single-aisle aircraft, Irkut MC-21from United Aircraft. Now it’s time to analyze the new Russian engine, PD-14, which is offered as an alternative to the base engine for the aircraft, the Pratt & Whitney PW1400G. 
Summary:
- The PD-14 is a new engine designed by the Aviadvigatel company, a merger of the Soloviev design bureau with the Perm engine company.
- PD-14 is a modern 31klbf design aimed at several Russian aircraft, the first being the MC-21.
- The technology and performance of the PD-14 engine are approaching its Western counterparts, Pratt & Whitney PW1400G and LEAP-1A, but not quite reaching their level. We go through where it differs. Read more
Bjorn’s Corner: Flight tests
By Bjorn Fehrm
19 February 2016, ©. Leeham Co: Last week I described how Mitsubishi Aircraft Corporation (MAC) issued a press release on Christmas day communicating MAC would be doing structural reinforcements on their test airframes before continuing flight testing. MAC was perhaps overzealous when informing the world that they would do minor reinforcements to two ribs and a few stub spars in order to pass Ultimate strength tests for the aircraft.
I rightfully thought this is the Japanese culture at play; there must not be a big problem behind it.
There was one more area of that press release that intrigued me. Here what it said: “The first flight and the subsequent flight tests have confirmed the basic characteristics to be satisfactory. However, we also have recognized several issues as we attempt to accelerate our development.”
Time to decrypt this as well and compare to what has become standard industry practice.
Video from the Embraer E190-E2 rollout
Feb. 25, 2016: Here’s some video coverage of the Embraer E190-E2 rollout events.
https://youtu.be/afTP9qsyZ5g
Pictorial from Embraer E190-E2 rollout
Feb. 25, 2016: Embraer rolled out its E190-E2 to a series of fly-bys of EMB aircraft ranging from a crop duster to the KC-390, hundreds of invited guests and media and thousands of its employees.
Here are some photos from the rollout.
E190-E2 No. 1, rolled out Feb. 25, 2016.