Aerospace is a big business but it is an industry increasingly consolidated. Big business yes, but a shrinking industry for sure.
The recent July deal by UTC to sell its Sikorsky helicopter unit to Lockheed Martin for $9bn is an example of how the huge parts and pieces need to shift around to extract value. UTC says it will use the funds for share repurchases. But what about instead making an investment that could really shake up the industry?
How about merging Pratt & Whitney and Rolls-Royce? Continue reading
One frequently hears the 100 seat segment is gone. Airlines are up-sizing we are told. And depending on the segment, we hear an equal number of arguments that airlines are right sizing. It seems the truth is somewhat hazy – don’t take as the final word somebody selling aircraft. They have a job that requires selecting the argument to support the deal in play.
Now take a look at this interesting story from Bloomberg. Throughout the story there is a thread – the 100 seat market has not gone away at all. We see airlines that use and seek these aircraft, specifically the 717, and they want more. And its not just the 717, Embraer is talking about production increases. Embraer is looking at the popularity of its E-175 in the US as well as other larger models beyond the US. … Continue reading
For now they are just rumors, but according to “several internal sources”, Air France is willing to create a low cost long haul service, using pilots and cabin crew with a status different from that of the parent. This company would operate the Boeing 787 ordered by the Franco-Dutch group, aircraft that have lower costs, consuming up to 20% less fuel compared to a current long-range equivalent aircraft.
Air France/KLM ordered 25 Boeing 787, 12 and 13 for KLM for Air France, and the first will be delivered next month to the Dutch company. Air France will have to wait for the first delivery in November 2016, followed by four more in 2017.
The project is not currently in discussion, although it is certain that its implementation requires the achievement of an agreement with the pilots. The recruitment of staff would be on a voluntary basis, as in the case… Continue reading
[UPDATE – see MRJ Update under downloads under Featured Downloads]
Today Mitsubishi announced its first flight plans for October – “Latter half of October 2015” is their language. The flight is planned for an hour. We are in an era where first flight dates are not announced this far ahead and with equally liquid time periods. MRJ must feel some confidence that they would even publish this – we have seen first flight windows announced a week ahead to media with no certainty whatsoever – a sort of “be here between day X and day Y”. To be fair OEMs planning such events have to contend with all sorts of variables – recall the CS300 first flight in February this year when the weather was predictably awfully cold and unsettled. But that’s Montreal weather for you. Continue reading