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
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
Airbus and Boeing represent the largest sectors of commercial aerospace with their single aisle aircraft. As both companies transition from their current generation to next generation, what patterns can we discern?
For example, both OEMs talk about up-sizing – particularly when they describe the under 150 seat market. They offer their orders as evidence that the world is moving up. But even as they say this, the orders Bombardier and Embraer have started to build in the sub-130 market exceeds what Airbus and Boeing have. So the big duopoly argument holds, but only sort of.
Beyond the 150 seat market it starts to become messier. Airbus’ A320 at 150 seats seems to be a standard that airlines like. Boeing’s 737-800 at 162 seats competes with the A320, but has 12 more seats. Boeing has to discount those seats to match deal Airbus offers. The annoyance and cost is the reason we see the MAX7 now has grown to match the A320, allowing Boeing to recoup its costs on the larger model. However, one should note that the MAX8 is 2.2m longer than the A320neo. These extra 12 seats come at no extra trip fuel/costs – the MAX8 offers considerable revenue upside. Moreover, Boeing claims the MAX8 offers more air time (9 hours) than the A320neo (8 hours), and also offers longer periods between heavy checks and higher dispatch rates. Continue reading
According to a published report in Norway, Wideroe, the former SAS feeder airline that was sold to WF Holding in 2013 (with the final 20% of shareholding acquired in 2016) may purchase 10 Bombardier C Series aircraft. The airline currently has a fleet of 41 aircraft and operates primarily in Norway.
The article does not mention which C Series model is contemplated. The CS100 is currently in service with Swiss, and the larger CS300 is expected to enter service with airBaltic later this year. An order would increase Bombardier’s penetration in Scandinavia, as Braathens Aviation has firm orders for 10 aircraft for its Malmo Airlines subsidiary.