Boeing today confirmed another long-expected delay of the 747-8, to mid-2011, but aerospace analysts think yet another 3-6 months might be coming.
A fifth 747-8 will be added to the flight test program, and customers tell us Boeing is preparing to find and provide interim lift in the form of 747-400Fs to help them through the delays, which are now around two years.
[Read more...]
Photo credit: Boeing
In news just announced via Reuters, Italy is to get its first two Boeing 767 tankers this year. The remaining two will be modified and be delivered later – no date has been announced.
This delivery comes some five years late. The announcement of this news comes at an important time for Boeing. The company is going to have a tough battle with EADS for the USAF tanker contest. EADS has not had an easy run with its own tanker – its delivery to the RAAF is also running late. [Read more...]
I published this analysis earlier today on GLG News, and have reproduced it here for our readers. [Read more...]
In a $1.4 billion transaction, Southwest Airlines has acquired AirTran to provide further growth to the low-cost carrier. This will be the third acquisition for Southwest, which previously acquired Muse Air and Morris Air and made a failed offer for Frontier just last year.
AirTran provides Southwest with an immediate large presence in Atlanta, entry into Reagan National Airport in Washington DC, and international service to Aruba, Bahamas, Dominican Republic, Jamaica, Puerto Rico and Mexico.
This acquisition appears to be complimentary in terms of routes and structure, as well as fleets, with the exception of the Boeing 717. AirTran will be integrated into Southwest’s operations once the transaction is completed, which will result in changes for AirTran passengers.
AirTran currently offers 2-class seating, with a business and economy configuration and advanced seat selection while Southwest offers one-class seating with board by check-in number open seating. A major change will occur for AirTran passengers.
Acquisition expenses are estimated to be between $400-$500 million, and Southwest believes the acquisition will be significantly accretive after the first year.
This acquisition has significant implications, and the AirInsight team will analyze this transaction as more information becomes available. Stay tuned for a podcast later today.
Pratt & Whitney’s Alan Epstein, VP of Technology & Environment, discusses new engine technology in Jetrader, the magazine of the trade group ISTAT. (This is a two-page article.)
Epstein discusses what he calls a 25-30 year gap in new technology engines for single-aisle airplanes; open-rotors, of course, the geared turbo-fan; biofuels; and the shape of airplanes by 2035.
Today the industry saw two nice aircraft orders. In total, Airbus and Boeing booked (at “retail”) nearly $6bn today. That is a big number given that airlines are only now starting to see profits after years of losses. The old adage is, when airlines make money they buy planes, and take delivery during the next recession when they don’t need them.
Airbus started the news today with an order for eight A319s, 24 A320s and eight A330s. These airplanes are destined for Lufthansa, Swiss and Germanwings. Total order value (caveat, retail) is about $4.3bn. The timing on the A320 family orders is interesting because A320NEO news is imminent. Might these airplanes become NEO? Nothing hints to this in the official announcement.
Lufthansa is now Airbus’ largest customer with 325 planes in operation. It is fair to assume that anything NEO related will have been shared with them by Airbus. You have to wonder if these orders will be converted after the official launch - especially since the airline’s Executive Vice President, Group Fleet Management, Nico Buchholz has already committed to the CSeries and its P&W GTF.
Then Boeing announced that Cathay Pacific committed to six more 777-300ERs. Retail order value is $1.6bn. Cathay’s 777-300ER fleet will grow to 36. They also operate 12 777-200s. Cathay’s CEO echoed the sentiment of 777-300ER customers: “We have been very impressed by the operating economics of these aircraft, while their high efficiency has resulted in a reduced environmental impact. As we continue to enhance our fleet, the 777-300ER will play a crucial role in our operations in the years to come.” This airplane has become the benchmark for longhaul airliner economics, despite United’s Glenn Tilton calling it “old technology”.
Orders from such important customers indicates a willingness to invest and this is a signal to the market that it may be time to re-enter the market. Other airlines may now be encouraged to accelerate their fleet decisions. The airline industry is in some ways, lemming-like. When a few leading carriers act, the herd reacts. Part of the reason is that this is such a competitive industry that an airline can’t allow anyone else an edge. And great airplane delivery slots are a key advantage. Look for a spate of new orders soon.
Panasonic’s Neil James describes how the company focus has evolved regarding connectivity and its embrace of more open standards. For industry insiders, this change in approach is revolutionary. The new thinking was matched with real creativity in new products and future thinking demonstrated at the event.
