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There was an economic slowdown for the Middle East Three (Emirates, Etihad, and Qatar Airways or ME3) in 2016, after multiple years of substantial growth in revenues, yields, load factors, and profitability.  Whether due to a lack of oil-related business traffic as oil prices went south, or the lack of political stability the Middle East having a carry-over effect on the relatively safe parts of the UAE, yields and profitability have fallen for the ME3 in the second half of 2016, with revenues not keeping up with growth in traffic.

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Bombardier announced that its 2016 C Series deliver schedule will be delayed, while citing the statistics from the first two aircraft in service with Swiss.  The good news is that the two CS100 aircraft in service with SWISS have collectively flown nearly 400 revenue flights, and accumulated nearly 600 flight hours.   The bad news is that Bombardier stated engine delivery delays will cause delivery reductions from a planned 15 to only 7 aircraft in 2016.  Since the OEMs are paid their final installment on delivery of aircraft, it impacts revenues and cash flow. The company will deliver the third CS100 to SWISS next month and deliver the first CS300 to airBaltic in the fourth quarter.

The supply chain is under stress.  During the UTC media day event prior to the Farnborough airshow,  P&W pointed out their greatest concern was parts supply and the supply chain.  At that time, one official noted that P&W and CFM… Continue reading

Airbus launched its new Cabin brand “Airspace by Airbus”. At the heart of this new philosophy Airbus connects the well-being of passengers with the operational performance of its airline customers. Representing the best of Airbus’ cabin innovation and design, Airspace will offer a sophisticated, flexible canvas as a back-drop to enhance the airlines’ own brands.

Airbus also launched the new cabin for the forthcoming A330neo airliner, which embodies Airspace by Airbus and is inspired by the cabin of its sibling, the new A350 XWB. Continue reading

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