March 1, 2016, (c) Leeham Co.: The manufacturers and their customers remain unclear
about the need and design of the so-called Middle of the Market aircraft, their representatives said at the ISTAT AGM today in Phoenix. The business case has yet to be proved.
Participants in the Middle of the Market Panel are:
Ron Baur, VP Fleet, United Airlines
Robert Lange, SVP Market and Product Strategy, Airbus
Randy Tinseth, VP-Marketing, Boeing
Bert van Leeuwen, Managing Director, DVB Bank
- We’re at the 2016 ISTAT AGM in Phoenix and will be reporting on presentations and news from the sidelines.
Van Leeuwen, the banker, said financiers would need to see at least 1,000 MOMs in the market with a broad customer base to feel comfortable financing the airplanes.
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Airbus needs more vertical integration, says official
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Introduction
John Leahy, chief operating officer-customers. Airbus photo.
March 3, 2016, © Leeham Co.: Airbus may well have avoided the supplier-driven delivery delays on its A350s had the company brought some key work in-house and become more vertically integrated, says its chief operating officer-customers.
Airbus has been bedeviled by delays in business class seat and galley deliveries from supplier Zodiac, resulting in delayed deliveries of the A350-900 to several airlines.
John Leahy, in an interview with LNC at the International Society for Aircraft Transport Trading (ISTAT) conference Feb. 29-March 1 in Phoenix (AZ), said Airbus shouldn’t be at the mercy of suppliers of interiors. His wide-ranging interview also touched on several other topics.
Summary
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Posted on March 3, 2016 by Scott Hamilton
Airbus, Boeing, Bombardier, CFM, CSeries, ISTAT, Leeham News and Comment, Pratt & Whitney, Premium
737-7, 737-700, 787, A319, A320NEO, A330-900, A350, Airbus, Boeing, CFM, GTF, ISTAT, John Leahy, LEAP, Pratt & Whitney, Zodiac
Final flight for first Boeing 727
The first Boeing 727-100, sold to United Airlines (N7001U) made its first flight in 25 years March 2, 2016, from Paine Field in Everett (WA) to Boeing Field in Seattle. The 12 minute flight was also the airplane’s last. The aircraft, which flew for United for 27 years and carried three million passengers, will be permanently displayed at the Museum of Flight. This is painted in the original delivery colors for United. Note that then there were no outlines of the doors and emergency exits; this FAA requirement came years later.
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20 Comments
Posted on March 2, 2016 by Scott Hamilton
Airlines, Boeing, United Airlines
727, Boeing, Boeing Field, first 727, Museum of Flight, N7001U, Paine Field, United Airlines
ISTAT Day 2: MOM business case remains a challenge
March 1, 2016, (c) Leeham Co.: The manufacturers and their customers remain unclear
about the need and design of the so-called Middle of the Market aircraft, their representatives said at the ISTAT AGM today in Phoenix. The business case has yet to be proved.
Participants in the Middle of the Market Panel are:
Ron Baur, VP Fleet, United Airlines
Robert Lange, SVP Market and Product Strategy, Airbus
Randy Tinseth, VP-Marketing, Boeing
Bert van Leeuwen, Managing Director, DVB Bank
Van Leeuwen, the banker, said financiers would need to see at least 1,000 MOMs in the market with a broad customer base to feel comfortable financing the airplanes.
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57 Comments
Posted on March 1, 2016 by Scott Hamilton
Airbus, Airlines, Boeing, ISTAT, Middle of the Market, MOM, United Airlines
757, 757-300, 757W, Airbus, Bert van Leeuen, Boeing, DVB Bank, ISTAT, Middle of the Market aircraft, MOM, Randy Tinseth, Robert Lange, Ron Baur, United Airlines
Embraer weighs in against Honeywell-UTC merger
Fred Curado, CEO of Embraer
March 1, 2016, © Leeham Co. Embraer joined Airbus and Boeing in opposing the potential acquisition by Honeywell of United Technologies Corp.
UTC rejected the merger—which came to light last week—but it is unclear if Honeywell will continue to pursue the idea.
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3 Comments
Posted on March 1, 2016 by Scott Hamilton
Airbus, Boeing, Embraer, ISTAT
Airbus, Boeing, Credit Suisse, E190 E2, Embraer, Fred Curado, Honeywell, ISTAT, United Technologies
ISTAT Day 1: Engine updates for CFM, GE, RR and PW
Feb. 29, 2016, (c) Leeham Co.: The LEAP engine, for the Boeing 737 MAX, Airbus
A320neo and COMAC C919 is the fastest-selling engine in history, says Jean-Paul Ebanga, the president of CFM International. More than 10,000 have been sold.
“It’s on-time and on-spec,” Ebanga said. It’s either been on the date set four years ago or ahead of schedule. The engines delivered to Airbus for the A320neo are on spec, he said. It’s been certified for the neo and will be certified soon for the MAX, with 90% of the information submitted.
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13 Comments
Posted on February 29, 2016 by Scott Hamilton
Airbus, Boeing, Bombardier, CFM, Comac, CSeries, E-Jet, Embraer, Irkut, Mitsubishi, Rolls-Royce
737 MAX, A320NEO, Airbus, Bill Brown, Boeing, Bombardier, C919, CFM, Comac, CSeries, EJet E2, Embraer, GE Aviation, Irkut, Jean-Paul Ebanga, LEAP, MC-21, Mitsubishi, MRJ90, Rolls-Royce
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.
“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.
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11 Comments
Posted on February 29, 2016 by Scott Hamilton
Airbus, Boeing, ExIm Bank, Farnborough Air Show, ISTAT, MOM
757, A330-900, A350-1000, Airbus, Boeing, ExIm Bank, Farnborough Air Show, ISTAT, John Leahy, Middle of the Market, MOM
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.
Boeing is watching oil prices, the global economy, geopolitical hot-spots, cargo demand and several other factors for the near-and long-term.
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8 Comments
Posted on February 29, 2016 by Scott Hamilton
Airbus, Boeing, EADS, ISTAT
Airbus, Boeing, EADS, ISTAT, Randy Tinseth
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.
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.
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8 Comments
Posted on February 29, 2016 by Scott Hamilton
Airbus, Boeing, GE Aviation, ISTAT, Pratt & Whitney, Rolls-Royce
777-200ER, 777-300ER, 787-10, 787-8, 787-9, A330-300, A350, A350-1000, Airbus, Aviation Specialists, Avitas, Boeing, GE Aviation, IBA, ISTAT, Oriek, Pratt & Whitney, Rolls-Royce
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.
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.
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11 Comments
Posted on February 29, 2016 by Scott Hamilton
Airlines, ISTAT
Adam Pilarski, airlines, ISTAT, oil prices
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….”
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33 Comments
Posted on February 29, 2016 by Scott Hamilton
Airbus, Boeing
747-8, 787, A380, Airbus, Boeing, Dennis Muilenburg, Jim McNerney, program accounting, SEC
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