We continue our big picture analyses with a comparison of the in-service fleets at Airbus and Boeing for the years 2000, 2007 and 2014. This provides an interesting opportunity to see how these two OEMs are doing in the market. As the charts show, there is a distinct difference. Continue reading
The commercial aerospace industry has two duopolies – a big one (Airbus & Boeing) and a small one (Bombardier & Embraer). If markets were clearly differentiated these four companies would coexist in an environment where there are two competitions. But, as we know, the commercial aerospace business is not cleanly split – there is a growing area of friction between the duopolies where their interest meet.
The area where the friction is occurring is the 111-140 seat segment, and that segment itself built on the foundation of the 91-110 seat segment. The under 100 seat segment is where the regional jet makers of the small duopoly have traditionally traded and honed their craft. Success at the sub-100 seat segment has enabled the smaller duopoly firms to experiment by stretching aircraft and even developing aircraft with more than 100 seats. The success Bombardier and Embraer enjoyed has attracted attention and competition from Mitsubishi in Japan and SuperJet from Russia and Italy. To maintain their duopoly Bombardier and Embraer decided to grow their aircraft up to the nominally 130 seat size. Continue reading
Take a look at this chart of the 2014 in service passenger airliner fleet. In our view this provides a very useful breakdown of the OEMs by seat segment. It also highlights some opportunities for new business. Continue reading
The much delayed ARJ has started test flights for launch customer Chengdu Airlines. The first two deliveries are set occur in April or May. This will be the first Chinese attempt at offering a regional airliner.
So how does their offering compare to competitive products that exist today?
The Chinese have publicly stated that they did not expect to produce a world-beating aircraft out of the box, and that the ARJ-21 was to be a learning experience. But they did expect to make an aircraft that could be competitive, given the capital cost differential, for Chinese airlines, which they have done.
The table above shows the seating is virtually identical in a typical two-class configuration. But then the other numbers come into play – the ARJ is much heavier; 16% more than the CRJ and 14.4% heavier than the E-175. This causes an interesting requirement – all three use various… Continue reading
Last week Airbus and Boeing provided two charts in their ISTAT presentations that sort of popped. Take a look. Pay attention to their use of color to highlight the point being made. Continue reading