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A320NEO

Airbus announced their 2016 pricing and they added a 1.1% increase across the line.   So what does this look like? After all, no customer pays retail.

Since each customer deal will see prices vary by many factors, we will stick to the retail prices to illustrate our points. Let’s start with single aisle aircraft pricing since 2010. Continue reading

First it was Qatar.  Now its IndiGo.  Airbus has been doing a great job moving its neo program along.  The program’s sales are substantially ahead of the competing 737 MAX.  Everything looked so good until mid-December.

IndiGo’s reaction to the delay is not exactly positive.  And they have 250 on order, so this is not a customer anyone would like to annoy.

Moreover its not just the neo that is now running late.  The A350 program is also behind scheduled deliveries.  That program has seen slow deliveries this year – hopes are much higher for 2016.

Airbus’ CEO pointed to a “cabin equipment supplier” issue on the A350.  They have not yet pointed any fingers for the neo program (“industrial reasons”).  And there’s little point in doing so.

Airbus has aggressively grown its market share in orders by effectively marketing… Continue reading

The is the replacement for the original first delivery. Note the amazingly small noise footprint.

And this is the airplane that should have been delivered first. This airline has a track record of not taking deliveries as planned.

Airbus_A320neo_NEO_F-WNEO_MSN6101_PW_GTF_PW1100G-JM-620x431Airbus announced that its A320neo, powered by Pratt & Whitney PurePower® engines, has received joint Type Certification from the Federal Aviation Administration (FAA) and from the European Aviation Safety Agency (EASA).

“Today’s announcement marks a significant milestone for the Airbus and Pratt & Whitney team,” said Greg Gernhardt, president, Pratt & Whitney Commercial Engines. “We initiated our partnership on the A320neo in December 2010 with the goal of helping our mutual airline customers continuously improve aircraft performance and operating economics. Pratt & Whitney is proud that the PurePower engine is the launch engine on the A320neo and will contribute to more than 16 percent fuel burn savings when airlines enter into service. We continue to work closely together to support aircraft deliveries to customers as they embark on a new age in aviation.”

Airbus announced Pratt & Whitney’s award-winning PurePower Geared Turbofan™ engine as an engine option for its A320neo… Continue reading

Russian airline, Transaero, deep in financial difficulties, was supposed to be taken over by Aeroflot.  Turns out Aeroflot won’t be doing that because the company cannot get the 75%+1 share of Transaero it had expected.  The takeover has fallen through.

Transportation Minister Maxim Sokolov told reporters yesterday that the government will not allow the airline to even sell tickets.  With its debts unable to be paid, and no state bailout, Transaero looks doomed.  Yesterday a report in Russia said the state moved on a bankruptcy.  The share price is down to 20 rubles (about $0.31).  Could there be some shareholders holding out for something?

It would appear a power play is in the works. Aeroflot has no need to rush to rescue Transaero.  Once the state withdrew a parachute, Transaero debt and shareholders were left hanging.  Whereas they might have been given… Continue reading

Airbus’ A320neo fleet started flight tests outside France last month, with the LEAP-engined aircraft going to Bolivia and the GTF-engined aircraft going to the UAE.  Airbus is pushing its tests hard because it has publicly said it will deliver its first aircraft by year end.

There are big kudos for accomplishing this.  Making such a delivery is a poke at Bombardier and Boeing.  That alone makes the pressure worthwhile.  But along with the aggressive schedule comes risk.

Continue reading