Can a cheap 767-300ER replace the 757W?

As some customers press Airbus and Boeing for a replacement for the Boeing 757-200W used on selected trans-Atlantic, long-thin routes, Flightglobal floated a suggestion that that the Boeing 767-300ER might be a possible replacement.

The last passenger 767 was delivered this month. The line remains open with the 767-300ERF and the early stages of the USAF KC-46A tanker. A cut-price 763ER might be cheap enough to offset the operating cost disadvantage, or so the theory goes.

The 763ER is the right size in a three-class configuration—218 seats–and will be in production for many years to come due to the KC46 production line. We know Boeing sold the 763ER for a very low price in connection with compensation for the 787 delays, and we know that at a very low price, the 763ER economics do match the 787’s operating costs. But how does this stack up against the 757 in Flightglobal’s hypothesis?

Not very well. We did a quick economical analysis with our proprietary model.

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NTSB releases report on 787 battery incidents

The National Transportation Safety Board released a report on its investigation of the Boeing 787 battery fire on the Japan Air Lines 787 and the smoking battery on the ANA 787 in January 2013. The Federal Aviation Administration grounded the 787s for more than three months while a fix was designed.

The NTSB press release summarizing its points is here.

The agency’s 12-page letter of Safety Recommendations is here. Additional information is here.

Engineers group supports anti-Russia DOD amendment involving Boeing

The International Federation of Professional and Technical Engineers, an affiliate of the AFL-CIO, has written members of Congress supporting an amendment to the FY15 National Defense Authorization bill (HR 4435) that would block Defense spending with Russian companies, including on with which Boeing has a major agreement.

This relates to the situation in Ukraine. The trade group summarizes the amendment below:

 

DeLarua/Granger/Ellison/Connolly (VA) Huizenga amendment #201 – to prohibit the DoD from entering into a contract or subcontract with Russia’s state-arms dealer Rosoboronexport until Russia pulls out of Crimea and has withdrawn from the eastern border of Ukraine. The fact that American taxpayer monies are being spent to prop up a Russian state run company is disturbing enough. However, what is sometimes lost in the discussion and reporting is that major American aerospace manufactures and Pentagon defense contractors continue to do business in Russia, including with Rosoboronexport. For example, The Boeing Company, which receives billions of dollars in Pentagon defense contracts, and was just granted billions more in tax incentives from Washington State taxpayers, has entered into a multi-billion dollar joint venture with Rosoboronexport, that could include up to $18 billion in contracts for Russian titanium products, and $5 billion on Russian engineering services by 2030. Meanwhile, the company is laying off thousands of US engineers. Not only does IFPTE support this amendment and urge a yes vote on it, we believe that its impact should also be extended to American manufactures doing business in Russia, particularly major American defense contractors such as Boeing.

The West’s sanctions against Russia are having an impact on aerospace. Bombardier was on the cusp of firming up an MOU for up to 100 Q400s and an assembly site in Russia into a contract when Russia entered Ukraine’s Crimea region. Canada is supporting sanctions (there is a large Ukrainian population in Canada). Boeing’s president and COO, Dennis Muilenburg, canceled an appearance at a key Russian conference (though lower level Boeing people reportedly would attend), supposedly at the request of the US government.

European participation in sanctions appears spotty.

Embraer’s enhanced E-Jet passenger experience

We flew in a new American Airlines (operated by Republic Airways) Embraer E-Jet E1 on our way to the Pratt & Whitney media day and noticed the difference immediately with the E-Jet” Classic.”

It’s the “passenger experience.”

The E-Jet Classic had overhead bins that were better than the Bombardier CRJ and Embraer ERJ but non as good as the Airbus A320, Boeing 737 or the forthcoming Bombardier CSeries. The bins could accept larger bags than could the CRJ and ERJ but not as big as the other jets. The port side bin in the E-Jet Classic was a narrow little thing that we joked could accept your water bottle and that was about it.

The new E-Jet E1 Enhanced bins are much better. While the port side first class isn’t as big as the starboard side, it now accepts briefcases, tote bags and small backpacks. The star board bin easily accepts roller backs sized for three nights away, though Airbus, Boeing and CSeries still have an advantage.

PW Media Day 2: GTF gets 35,000 lb thrust rating

Pratt & Whitney today confirmed that it will offer a Pure Power Geared Turbo Fan engine with 35,000 lbs of thrust, an increase of two thousand pounds from the previously announced model that powers the Airbus A321neo.

Officials declined to confirm our previously reported thrust bump for the Bombardier CSeries GTF, continuing to stick with its prepared statement.

Thrust bumps are largely considered for hot-and-high operations, where the extra boost is needed to get off the runway with maximum payload. In most operations, the extra thrust isn’t needed. The trade for the extra thrust is higher maintenance costs.

Airlines, according to one engineer, tell engine OEMs that they don’t want the extra thrust as the engine is being designed because of the associated extra costs, but then invariably later say they do.

Market Intelligence tells us CFM is going to provide a 35,000 lb model of the LEAP that powers the A321neo and the Boeing 737-9 MAX.

Separately, PW announced:

  • Six prototype V2500 engines built by affiliate International Aero Engines were shipped to Embraer for its KC-390 MRTT tanker. Flight testing will begin this year and certification is expected in the third quarter.
  • PW is “significantly” increasing capacity in advance of increased engine production demands for the civil and military markets.
  • PW signed $10bn in long-term supplier agreements with 90 companies globally for civil and military engines.

PW Media Day 2: President’s overview

Paul Adams, president of Pratt & Whitney, called 2013 a “transformational” year during his overview at PW’s Media Day today.

The CSeries GTF was certified and Embraer selected the GTF to power its E-Jet E2. Bombardier’s first CSeries also flew for the first time, representing the first time the GTF became airborne on an airliner (as opposed to PW’s Boeing 747SP test bed).

Adams said that PW, like other airframe and engine OEMs, plans to grow its after-market business as a profit center. By continuing to integrate the V2500 producer International  Aero Engines and P&W AeroPower (APUs), Adams said that this is key to the transformational strategy going forward. Growing commercial and military engines is also key.

Integrating IAE presents “one face to the customer,” Adams said, particularly as the V2500 program on the Airbus A320ceo ramps down as the GTF-powered A320neo program ramps up. The aftermarket for the 6,000 V2500s now in service and about 2,000 more to be delivered before the program ramps down will be an important profit center going forward.

Adams said that PW now has greater than a 50% market share on the A320neo family vs the CFM LEAP. The first two flight engines have been delivered to Airbus.

Adams announced that PW will offer a 35,000 lb thrust version of the GTF on the A321neo.

 

 

 

 

Odds and Ends: Quote of the Day; A380 vs 777X; 757NG; CSeries

Quote of the Day: We have our favorite in this story. We presume our Readers won’t have any trouble figuring this out. And the prospect of announcing the Airbus A330neo at the ILA Berlin Air Show is clearly off the table.

A380 vs 777X: Airbus CEO Fabrice Bregier said the A380 will have to be updated in order to be able to compete with the Boeing 777X, confirming our analysis in February that the 777X will give the giant aircraft a run for its economic money.

Boeing 757NG: Delta Air Lines’ CEO Richard Anderson thinks Boeing should make a 757NG. Failure to do so could open the door for Bombardier and Embraer to move up into this space, he says. Interesting idea from Seeking Alpha, with an annoying requirement for free registration to complete reading the article.

CSeries: From the sidelines at Pratt & Whitney: FTV 4 said to be airborne; BBD won’t send a CSeries to the Farnborough Air Show.

PW Media Day 1: next gen GTF to cut fuel costs 10%-15% over today’s GTF

We’re at the Pratt & Whitney media days today and tomorrow. This is the Technology at PW panel. Participants are:

Alan Epstein, engineer and moderator. (AE)

Michael Winter, chief technologists (MW)

Graham Webb, MRJ, CSeries and EJet engines. (GW)

Jimmy Kenyon, advanced military programs. (JK)

All information is paraphrased.

GW: At $4/gal, over 60% of cost to an airline is for fuel. Engines must cut these costs. A380 and 787 consume less than 3 liters per passenger, about that of a compact car.

GTF is certified [on CSeries]. GTF now on five airframes with 12 sub-types. The engine reduces fuel and maintenance costs, reduced emissions. Fuel savings now demonstrated at 16% less than today’s engines.

Next generation of GTF will further reduce fuel burn by 10%-15%.

MW: The noise footprint will stay predominately within the airport boundaries, using 2,000 fewer foils, about half of our competitor’s engine. Emissions are about 50% below current regulations and working with NASA toward 88% below current levels.

Current bypass ratio about 13:1 and currently testing with NASA 15:1 and 18:1.

375% improvement in efficiency since the days of the Whittle jet engine.

We have the most advanced cooling system in the industry and we are exploring inserting advanced materials into the engines when there is real benefit to the customer.

JK: We’re seen similar trends to improve efficiency in military as with commercial. The Department of Defense is the biggest user of energy in the country, with about 80% in engines.

The military has seen really tight budgets in recent years. There is more than just a cost issue, it’s also an energy security issue (Iraq, Afghanistan challenges). There is a real interest in cutting energy usage and aviation being such a large part, it is a natural place to look.

The strategy considers places where you have to fly farther and/or stay on station longer. We’re working on technology to provide fuel management and efficiency to reduce costs, fly father and stay on station longer.

We’re working with USAF to obtain 25% improvement in fuel efficiency on next engines, and with Navy to also improve efficiency, and leveraging work in the commercial arena to improve thermal efficiency.

AE: Are you a one-trick pony? What have you got besides the gear?

GW: We have advanced fan module, bringing forward light weight fan cases, the next generation combustor, advanced core, state-of-the-art high pressure turbine and high speed low pressure turbine, all of which designed for the very high speeds. There are control system enhancements, working on next gen of the fan-drive gear system, short inlets for enhanced efficiency.

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ILA Berlin Air Show begins tomorrow

The ILA Berlin Air Show begins tomorrow. The Air Show is a poor cousin to the Farnborough Air Show (July this year) and the Paris Air Show (in odd-numbered years). We went to this show in 2006 and were more excited about returning to Berlin for the first time since before the Berlin Wall came down than we were about going to the event itself.

Boeing doesn’t place much stock in the show since it is viewed as an Airbus star vehicle. Best we can tell from the ILA website, Boeing isn’t even an exhibitor.

Airbus tries to have some major announcements for the show, although Farnborough and Paris–being the bigger draws and having greater international prestige–are clearly the favored forum.

What might Airbus announce at the Berlin show, other than a few orders? The aviation world is waiting and watching for what Airbus will do about the A330neo and, with it, the future of the A350-800. Airbus is sending the A350-900 to the Air Show for the first time–will this be the place Airbus puts the nail in the coffin of the A35-800? We have our doubts about that.

Could Airbus launch the A330neo at the ILA? We received an email over the weekend that an announcement could be forthcoming at this show, but the source is from outside Airbus (though information from this source is usually reliable). Expectations for the A330neo have centered on Farnborough, however. Our Market Intelligence tells us few potential customers have actually seen proposals from Airbus on the A330neo as yet, so we think it might be a bit premature to have a launch of the program. Information is also that Airbus has been looking at the “second half” of 2014 to make a decision (at least publicly). May isn’t in the second half–but July is.

Other than this suspense, if you can call it that, we don’t expect much out of ILA this week.

Airbus, Boeing face pricing pressure

Airbus and Boeing face pricing squeezes that are the result of their continuing price wars and two products that need price cuts to maintain sales.

The fierce single-aisle battle between Airbus and Boeing, and to a much lesser extent, between Airbus and Bombardier, puts pricing pressure on the A320ceo and to some degree the A320neo.

Airbus and Boeing each blame the other for a price war that has put pressure on margins for the in-production airplanes, but market share battles are only part of the issue. There is the need to keep the production lines humming for these airplanes in advance of the transition to the re-engined A320neo and 737 MAX, particularly as the Big Two up production rates over the next few years.

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