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Daily Insight: Monday 24 June 2019: Apres Paris Insights

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News

The news at Paris focused on the A321XLR, the MAX order from IAG, the M100 relaunch by Mitsubishi, deHavilland bringing back a venerable name after taking over the Q400 program, ATR continuing to amass orders, Embraer beginning to turn the corner with the E2 while in transition, and the electrification of aviation.

Thirty years from now, we’ll look back at this show as the one in which hybrid and electric power really began to move mainstream, with major players as well as innovative smaller players attacking the problems and the lower power to weight ratio of batteries.  While electric aviation will have its teething problems, the attention of the industry is now clearly on the issue.  This will be an interesting focus in future years, evidenced by Rolls Royce acquisition of Siemens electric aviation engines and a new Airbus-Daher-Safran consortium for testing smaller electric motors on a TBM900

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Analysis

The short-term sets up the long-term, and the show has some interesting implications.  First, there were no large wide-bodies sold – both the A350 and 777X were shut out.  The 787 and A330neo had modest success, and overall orders were down from record levels due to a slowing global economy, trade uncertainties, long waits for new aircraft, and the need for airlines to digest their current orders, with backlogs still near record levels.  But the market is slowing from the go-go record order levels of the last few years.

Airbus launched the A321XLR at the Paris Air Show and immediately secured commitments for 206 commitments and 24 options from a lessor and ten airlines.  This quickly demonstrated the success of the new model, which will be deployed as a replacement for long-haul Boeing 757s by airlines worldwide.

With a range of 4,700 nautical miles, the A321XLR provides the longest range of any single-aisle aircraft currently in production with a similar number of seats as the 757-200.  When compared with the 737MAX10, the A321neo, A321LR, and A321XLR provide a variety of models that replace the 757 depending on range requirements for domestic and international flights.  It is outselling the MAX10 in the large category by a 4:1 margin, with these new orders nudging the ratio closer to 5:1.


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