A three way call with Ken Herbert from Wedbush Securities, Jon Ostrower from Flight Global and Michel Merluzeau at G2Solutions. The consensus was surprising – we did not select these people because of their similar views, yet that is how it turned out.
Our colleague Scott Hamilton scooped the industry on Boeing’s plan to re-engine the 737 for 2017 as well as move forward with an all new airplane for 2021-22. While it is admirable for Boeing to attempt to stem the tide of Airbus’ incredibly successful neo, with more than 1,000 orders in the few months it has been offered, does offering a re-engined aircraft that will be economically obsoleted a mere four to five years later by a new model make sense from any perspective? We suspect Boeing’s all new aircraft will be pushed to the right, giving Bombardier, COMAC and Irkut an opportunity to compete with 21st century aircraft with 21st century engines, with the CSeries being the most advanced.
Boeing’s two pronged strategy appears foolhardy for several reasons, but necessary given continuing issues with the 787.
- According to reports from Seattle, the re-engined model will be economically… Continue reading
American Airlines did a brave thing today with its amr-aircraft from Airbus (260+365) and Boeing (200+100). If you are a fleet planner at United, Delta or Southwest, your stomach just took a very unpleasant turn. The US domestic fleet (except at US Airways and Continental) tends to the aged side. These airlines missed out the last order wave because of poor financials plus a soft demand. However the cost of fuel and rising MRO costs are forcing hands – they cannot wait much longer and must renew fleets. This is what Airbus and Boeing have been waiting for – the coming feeding frenzy.
Well its here now. But American was not only brave, it was strategic too – it has bottled up just about every production slot Airbus and Boeing could have. Boeing has the P-8 line which can be harnessed (it will have to) to increase… Continue reading
At the Paris show, which is now in its final business day, we can expect Team Airbus to roll out their biggest deals. We have been hearing of a blockbuster AirAsia deal for 200 neos plus 100 options. Until its announced it is just a rumor. But other sources triangulate to make us feel confident Mr Leahy is in for a busy day. Continue reading
Airbus today announced 313 additional new orders for the A320neo family today in Paris. Customers include AviancaTaca for 33 (with 18 regular A320), Republic for 80, LAN for 30, Kuwait-based leasing company ALAFCO 30, and firming up the IndiGo order for 150neo and 30 non-neo models for earlier delivery. With a total of 545 neo orders at the show, Airbus has clearly taken a commanding lead in the narrow-body marketplace.
Boeing has announced orders for only 87 737NGs at the show, or a little more than 2 months production at its planned increase to 42 aircraft per month. While Boeing, unlike Airbus, doesn’t time orders for Air Shows, the disparity at Paris after 3 days is still quite astounding. Continue reading
In the event we are to believe the naysayers here at the Paris Air Show, Michael O’Leary and his airline are behaving like they are serious about the C919. The considered opinion among the considered in Paris is that Ryanair is playing a grand game to make Boeing blink. Airbus is less likely to blink given, shall we say, history.
As Mr O’Leary states in the linked article “….we remain in continuing discussions with both Boeing and now COMAC…” There is no mention of Airbus. And he goes on to say “…today’s announcement won’t affect our long standing relationship with Boeing…” Well what is it? A game of chicken?
COMAC has nothing to lose. Indeed, Mr O’Leary is apparently not a patient man and he is dealing with the most patient people in business. They will outlast and tire him. COMAC’s C919 is more… Continue reading