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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. Continue reading

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… 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

Airbus is pre-marketing a new concept, a 400 seat stretched version of the A350, tentatively dubbed the A350-8000. This new model would compete directly with the 406 seat 777-9.  According to John Leahy, the new model would have similar capacity and range as the 777-9 with substantially lower seat-mile costs.

Our analysis of the Super Twin market in 2013 projected that it would become a competitive necessity for Airbus to match the 777-9 in seating capacity to more effectively compete in this market. It appears that Airbus is now moving aggressively in that direction.

This model, which had been referred to as the A350-1100 by some in the industry; it offers approximately 40 seats more than the A350-1000, which offers about 40 more than the baseline A350-900. The A350-8000 would provide a direct competitor to the 777-9 and fill a gap in Airbus product line between the A350-1000 and… Continue reading

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