The announcement of job cuts is never a pleasant message, but in the case of Bombardier, appear to be both a financial and economic necessity. Bombardier is facing numerous challenges across its multiple business lines, rail, business aircraft, and commercial aircraft. The latter, particularly the C Series, is the key to the company’s future.
The C Series began life with an sizable economic advantage over existing models, but is facing re-engined competition that has somewhat leveled the playing field. The competing A319neo, 737 MAX 7 and Embraer E2 jets are all existing models that have been upgraded. The cost of a re-engining program is much lower than an all new aircraft, providing these companies with an economic advantage in that they have lower development costs to amortize over the life of the aircraft.
With strong existing customer bases, selling a re-engined jet versus an all… Continue reading
There are many airlines that operate on the fringes. But there is one that warrants a place of its own; Air Zimbabwe. Let’s take a look at what we have here as of 2Q16. The airline is small and has a history of financial trouble.
There is now, apparently, a task underway at the airline to update its long haul fleet. The talk is of leasing a 787 from Malaysia. To our knowledge, there are no Malaysian 787s. As the table shows the 787s based in Asia are quite busy doing business.
The story gets funnier. The airline has to avoid European destinations because of outstanding debts. Previously this caused an aircraft seizure in London, forcing it to stop flying to Britain. The airline may owe Heathrow $3m in unpaid fees. The London market is by far the most attractive financially and the… Continue reading
CFM International has delivered the 30,000th CFM56 engine. The company reports that the milestone engines, one each for Airbus and Boeing, were recently delivered to customers, including a CFM56-5B going to Delta Air Lines powering an Airbus A320ceo and a CFM56-7B engine to China Eastern Airlines for a Boeing 737-800.
Delta Air Lines launched the CFM56 engine into commercial service in 1982 and currently has more than 400 CFM56-powered aircraft in service or on order. China Eastern Airlines became a customer in 1994 and, today, is the largest CFM customer in China, operating more than 800 CFM56 engines.
Jean-Paul Ebanga, president and CEO of CFM International said: “It is an historic year for the CFM56 program. As confident as our founding fathers were in this program, I don’t think even they could have foreseen the success this engine has enjoyed. At the heart of it all, though,… Continue reading
Today Airbus delivered it’s 10,000 airplane. It is an A350-900 for Singapore Airlines making this is a big day for Airbus.
Airbus made its first delivery in 1974. It took a lot of confidence to create the company from a number of small European-based aerospace firms and cobble these parts into one group with one vision; break into an American dominated industry, In the process other EU-based aerospace firms that were not part of the Airbus combine were left to wither mercilessly – like Fokker and Dornier along with others – which was awkward because these brands were great and had been delivering credible aircraft. The nation-state shareholders had a vision and were not going to allow anything to get in the way of that.
Nation-state shareholders also came with baggage. Airbus also had to overcome the nationality-based “balance” between the Germans and French. … Continue reading
The Russian market just grew a bit more competitive. For aircraft in the 100-seat segment, the Sukhoi SuperJet has pretty much had the home advantage. But Embraer has seen the Embraer E-170 and E-175 awarded type certificates in Russia. Russian news outlet ATO reports that two Russian airlines are interested in the Embraer. S7 is said to be one the airlines.
Clearly the E-170/75 offers Russian airlines an option. Conveniently, there were 25 aircraft of these models parked at the end of the 2Q16. Exposure to the E-Jet gives Embraer a chance to find more customers to convert to the E2 when it enters service. Continue reading