A350 Loan: The Wall Street Journal reports that Airbus and Germany ended talks about a state loan for the A350 program. Good. Airbus doesn’t need the loan and “divorcing” from state aid frees Airbus to make decisions for the production based on commercial considerations and not politically-driven jobs requirements.
Airbus is considering a second A350 production line to open up slots for the -1000 model. Germany made no secret that this line had to be in Hamburg in exchange for the loan. Our Market Intelligence indicates Airbus may want to locate the line outside Germany and perhaps outside Europe. Ridding itself of continue German meddling is a good thing for Airbus; now it “only” has the unions to deal with.
Bridging 777s: Jon Ostrower at The Wall Street Journal published this story today about Boeing’s plans to support the 777 Classic sales in advance of the 777X. He reports that Boeing will try to pair 777 Classic orders with the 777X (something we forecast months ago). Boeing is also going to launch a 777 P2F program, persuading airlines to sell their older 777s to cargo carriers and replace them with new 777 Classic orders. This is a challenge because of the continuing softness in the cargo market and plenty of 747-400s available for conversion and 747-400Fs parked in the desert. Such a plan will make it increasingly difficult to support sales of the new-build 747-8F as well.
Although Boeing said it won’t shave the price on the 777 Classic to stimulate sales, we think it will (as it has on the 737 NG).
Embraer nabs E2 customer: Embraer today announced it won an order from an Indian airline for 50 E190 E2s and 50 E195 E2s with options for 50 each. The airline, Air Costa, is a current E1 customer. This is the first E2 order since the launch of the program at the Paris Air Show last June.
Reuters has an article from the Singapore Air Show quoting the Air Costa CEO. The article takes a look at the “small” aircraft market.
IAM chief speaks out: The president of the International Association of Machinists, Tom Buffenbarger, called the Puget Sound Business Journal to talk about the controversial Boeing 777X contract vote.
Why would Buffenbarger do this? He’s facing his first contested election since 1961 and his opponent is from IAM District 751 right here in Seattle. The article makes fascinating reading.
MC-21 profile: A Russian newspaper provides a profile of the Irkut MC-21 (or MS-21 or Yak-242). Talk about confused branding.
Posted on February 13, 2014 by Scott Hamilton
Airbus, ATR, Boeing, Bombardier, Embraer, IAM 751, International Association of Machinists, Irkut, YAK
747-8F, 777, 777 Classic, 777X, A350, A380, Air Costa, Airbus, ATR, Boeing, E-190 E2, E-195 E-2, E-Jet E1, E-Jet E2, Embraer, IAM 751, International Association of Machiniists, Irkut, MC-21, Richard Aboulafia, Tom Buffenbarger, Yak-242
Due to technical issues we don’t begin to understand, the PW GTF engine program update didn’t display the videos, only the links. We are re-posting to correct the situation because we couldn’t fix it within the original post.
Bob Saia, VP of Next Generation Engine development at Pratt & Whitney, provides a program update of the Geared Turbo Fan engine and its prospect of growing into a “Big Engine” serving the twin-aisle market. He appeared at the Pacific Northwest Aerospace Alliance 2014 conference in the Seattle area last week.
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[youtube=http://www.youtube.com/watch?v=CYUUtVEKhIs]
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http://www.youtube.com/watch?v=02RgF1So-X4
Questions and Answers
The following videos are questions and answers of the representatives of the Big Three engine manufacturers. Sound is soft on these two videos; best to use headphones.
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[youtube=http://www.youtube.com/watch?v=nArLnhsMraE]
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[youtube=http://www.youtube.com/watch?v=-Wtqr4FavP0]
Posted on February 12, 2014 by Scott Hamilton
A350 EIS: Bloomberg reports that the first Airbus A350 XWB could be delivered to launch customer Qatar Airways “before the December deadline.” According to the Ascend data base, the first delivery had been planned for July and then slipped to September and then October. Airbus later said November or December. Based on this movement and market intelligence, we had slipped EIS to early 2015. In the end, we’ll see where the date lands.
A330neo: Aspire Aviation reports that Hawaiian Airlines could be an early customer for the A330neo. The prospect makes sense: HA is a hold-out for converting its A350-800 order to the larger A350-900, preferring the capacity of the smaller airplane.
757 Replacement: News out of the Singapore Air Show about the prospect of a 757 replacement continues to pick up steam. This story in the Puget Sound Business Journal is as complete as any (besides which, it also quotes us and our stories).
Competing in Asia: CNN has a profile of the competition between Airbus and Boeing in Asia for the low cost carriers.
Posted on February 12, 2014 by Scott Hamilton
By James N. Krebs
Leeham News recently forecast that the next all new Boeing airplane will be a 757 successor with an entry-into-service around 2025, followed by a smaller NSA (New Small Airplane), a 737 MAX/A320 neo successor, in maybe 2027. I believe it will be clear in the next few years that the technology is and can be available here to build a reasonable-risk NSA with 20% fuel savings over the MAXes/ neos (at same seats) for initial service by 2025 (which will demand perhaps 40 more than 162 seats for even better economics). Its production would ramp up over ~5 years or so.
I hope this would be mainly a “Made in the USA” Boeing NSA: American engineering, American manufacturing, American jobs and American competitive edge. If that takes some helpful brainpower and/or investments from NASA, Northrop Grumman, Lockheed Martin, etc, good.
Boeing and Airbus might love to build a combined 100/mo. MAXes and neos “forever,” but technology and market forces aren’t likely to permit this. The companies won’t want to whet any appetites soon but I hope Boeing’s advanced design people are already at work–I’d be disappointed if they aren’t.
Airbus could certainly put an A320neo successor in service 10 years after their 2015 neo. A reengined A330 and a possible A350-1100 aren’t the only new projects they are capable of in the next decade. The market response to their A320neo family completely surprised Boeing a couple years ago. What’s next?
Posted on February 12, 2014 by Scott Hamilton
CNBC and Boeing’s McNerney: CNBC reporter Phil LeBeau, who covers aerospace and automobiles among other topics, thinks Boeing CEO Jim McNerney deserves a place in CNBC’s Top 25 CEO list. Here’s why. Aaron Karp at Air Transport World has his own take on Boeing’s position in the market today.
757 replacement: Airchive has an analysis on the need fora Boeing 757 replacement that is well worth reading. Our analysis was last October. Richard Aboulafia of The Teal Group said last week he also believes a 757 replacement is on its way (with a launch in 2018, as we previously suggested). Bloomberg has this article from the Singapore Air Show on the topic.
Bombardier earnings call: BBD reports its fourth quarter and year-end financial results Thursday. It will be interesting to hear of the impact of the latest CSERiesdelay, of 9-15 months. Here is a report in the Toronto Globe and Mail on what analysts thought in advance of the call.
Spirit Air CEO profile: The Associated Press has an entertaining profile of the CEO of Spirit Airlines, the notoriously unfriendly US airline that rivals Ireland’s Ryanair for fees and an apparent dedication for pissing passengers off.
Posted on February 11, 2014 by Scott Hamilton
Bill Boyd, senior vice president of Rolls-Royce, provided a program update of its Trent engines that are being developed for the Airbus A350 XWB. He appeared on a panel with GE Aviation and Pratt & Whitney. He appeared at the 2014 Pacific Northwest Aerospace Alliance conference last week in the Seattle area.
Sound is soft; use of headphones is recommended.
http://www.youtube.com/watch?v=5Ps_BuG1_JQ
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http://www.youtube.com/watch?v=Y2Lgs-oGJYg
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http://www.youtube.com/watch?v=Euo3TJZlQyc
Posted on February 10, 2014 by Scott Hamilton
Daniel Wenninger, senior director of the Airbus A350 XWB program out if the Airbus Americas office, appeared at the 2014 Pacific Northwest Aerospace Alliance conference last week in the Seattle area.
http://www.youtube.com/watch?v=8RdszdH0egE
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[youtube=http://www.youtube.com/watch?v=QMyM5NLu3V8]
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[youtube=http://www.youtube.com/watch?v=1YNb0UFKiMw]
Simon Pickup of Airbus Americas joins Wenninger for questions and answers.
[youtube=http://www.youtube.com/watch?v=eMtO4AfpZB4]
Posted on February 10, 2014 by Scott Hamilton
Jason Brewer, general manager of GE Commercial Engines Marketing, appeared at last week’s Pacific Northwest Aerospace Alliance 2014 conference on the Big Engines panel.
Brewer discussed the development of the GE9X for the Boeing 777X, outlining the new technology going into this big engine for Boeing’s latest 7-Series aircraft.
One slide–which is available to the conference attendees–showed a market forecast of 3,000 aircraft in a context that appeared to suggest GE sees a market of this number of airplanes for the 777X. We clarified this with Brewer after the panel; the forecast is for the 350-400 seat sector. Brewer told us that GE hopes to capture 1,700 of these aircraft.
This is the first time we’ve seen this sub-sector broken out–Airbus and Boeing typically forecast for the larger 300-400 seat sector in their 20 year forecasts. Airbus and Boeing have previously indicated they think the demand for the 400-seat aircraft (i.e., the 777-9X) is between 670-780 respectively.
The sound is pretty soft on this. It will best be heard with headphones.
Posted on February 9, 2014 by Scott Hamilton
Boeing’s vice president of marketing, Randy Tinseth, appeared at the annual Pacific Northwest Aerospace Alliance conference this week in the Seattle area. He talked about Boeing’s annual Current Market Outlook update as well as taking a light-hearted approach to some mythbusting, a la the television show.
http://www.youtube.com/watch?v=b4cSIkbCP5M
http://www.youtube.com/watch?v=nqXvG0Kh8Ho
http://www.youtube.com/watch?v=Ki2ps2Lt7-k
Posted on February 7, 2014 by Scott Hamilton
Richard Aboulafia, an analyst for The Teal Group, is a headline speaker at the Pacific Northwest Aerospace Alliance every year. Below are a series of videos of his presentation this year.
He provides an overview of the commercial airline industry in one, and addresses specific issues in others, such as the prospect of an Airbus A380neo. Aboulafia has been a long-time critic of the A380 but he also remarks why this airplane works for Emirates Airlines, its biggest user.
Aboulafia also talks about a variety of other issues, including remarking on Boeing’s cost-cutting Partnership for Success program, which has resulted in a ” no fly” list of Boeing suppliers unwilling (or unable) to cut costs to Boeing’s liking.
Posted on February 5, 2014 by Scott Hamilton