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Last week saw the usual excellent presentations from the industry was presented at ISTAT Americas 2017, an annual event of the International Society of Transport Aircraft Trading, 5-7 March.  A key takeaway for us what the focus Airbus and Boeing placed on capabilities.   Airbus stressed the capabilities of the A321neo and the A330neo.   Boeing did the same for the 787.   Whereas just a few years ago, the stress was on fuel burn savings, the new mantra is about what these aircraft can do with airline route structures.  There is useful guidance here for Bombardier and Embraer.

All four still talk about fuel efficiency – but it is no longer the primary point.  The emphasis has changed; from fuel savings to capabilities, particularly range. It appears the two big OEMs see that now is the time to discuss how the aircraft can do so much more in terms of range.  Airbus,… Continue reading

Delta Air Lines is now one the world’s largest airlines.  It serves over 180m passengers per year, has 80,000 employees and serves 323 destinations.  The following table lists the current fleet and what is on order.  Note the age of some of these aircraft – Delta is well known for its appreciation of low cost second hand aircraft it can secure.   Continue reading

In March, United Airlines announced it had done a deal with Boeing for 25 more 737-700s after its January deal for 40.  This deal was hotly contested by Bombardier for its CSeries.  The Boeing selection was a blow to Bombardier, but also seen as Boeing playing a weak hand .  United had both OEMs on the run.

Now United has decided to defer 61 737s, and it is going to save $1.6Bn in capex. United further noted it will convert these 737-700s into four -800s and MAX9s.  The 61 deferrals at $1.6Bn equates to $26m per aircraft.  This was the general understanding of the price level Bombardier was facing off against when trying to sell United the CS300.  We understand the airline operations people preferred the CS300 to the 737-700, but the financial people were looking at the killer Boeing offering.  Finance won.

Now here we are.  United has played… Continue reading

Airlines have embraced ancillary fees as a way to make up for low fares. One of those fees was the “Reservation Cancellation/Change Fee”.  Air travel is an activity that comes with many disruptive factors, as anyone can testify.  The US airlines embraced a series of fees. Take a look at how popular this fee has become. Continue reading

Embraer recently announced another E2 program milestone with their third E2 prototype making its first flight.  The company is generally out of the public eye, being based in a quiet city in Brazil.  But the firm develops world-class products.  Its current E-jets are popular worldwide, serving both regional and mainline airlines.

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