PARIS, June 18 (Reuters) – Boeing’s grounded 737 MAX jet received a boost on Tuesday after British Airways-owner IAG signed a letter of intent to order 200 of the planes and said it was confident that it would return to service in the coming months.
Boeing said the deal had a value of more than $24 billion at list prices.
IAG said the mix of 737-8 and 737-10 aircraft, to be delivered between 2023 and 2027, would be powered by CFM Leap engines and used across a number of its airlines including British Airways, Vueling and Level.
The MAX 737 was grounded in March following two deadly crashes, and Boeing has been working on a software fix to get the jet back flying by the end of the year.
IAG Chief Executive Willie Walsh said he had experienced Boeing’s MCAS anti-stall software in person, adding it was “very helpful to see it in operation” and to “understand the changes” that Boeing was proposing.
“It gave me confidence both in terms of the aircraft and the changes that Boeing introduced,” he said at the announcement of the deal at the Paris Airshow.
“I am confident in Boeing.”
Boeing shares rose 2% on the announcement. The company is working towards a certification flight with regulators soon.
Boeing commercial airplanes boss Kevin McAllister said the decision of when the MAX flies again was in the hands of the regulators.
(Reporting by Tim Hepher, Eric M. Johnson and Alistair Smout Editing by Jane Merriman and Mark Potter)
SEOUL (Reuters) – South Korea’s biggest carrier Korean Air Lines said on Wednesday it has signed a memorandum of understanding to buy 30 Boeing planes for $9.67 billion.
The company said in a statement that it will buy 20 Boeing 787-10s and 10 more 787-9s to add to its existing fleet.
It is the first purchase for a South Korean carrier of a 787-10 model, the largest member of the Dreamliner family, the company said.
(Reporting by Hayoung Choi, Joori Roh; Editing by Shri Navaratnam)
PARIS, June 17 (Reuters) – Boeing Co said on Monday it had no plans to change the name of the 737 MAX after news reports that it would be prepared to do so to improve its future marketing.
“Our immediate focus is the safe return of the MAX to service and re-earning the trust of airlines and the traveling public,” a spokesman said in an emailed statement.
“We remain open-minded to all input from customers and other stakeholders, but have no plans at this time to change the name of the 737 MAX.”
Bloomberg News earlier quoted Chief Financial Officer Greg Smith as saying that if Boeing needed to change the brand it would “address” that. The report also said Boeing executives insisted they had no immediate plans to drop the MAX name.
CNBC also reported the comments.
U.S. President Donald Trump urged Boeing on April 15 to “Rebrand” its 737 MAX jetliner following two fatal crashes.
(Reporting by Eric M. Johnson, Tracy Rucinski, Edited by Tim Hepher)
WASHINGTON (Reuters) – The U.S. Federal Aviation Administration (FAA) said on Monday it is moving to rewrite testing rules to allow for the eventual return of civil supersonic air travel.
At an event in Paris on Monday, Acting FAA Administrator Dan Elwell said the agency is working to “enable the return of civil supersonic travel, while ensuring the environmental impacts are understood and properly addressed.”
Later this week, the FAA will issue a proposed rule for “special flight authorization for supersonic aircraft,” Elwell said. This is the first step toward revising the FAA’s 45-year-old rules governing supersonic transport.
U.S. startups Aerion, Boom Supersonic and Spike Aerospace are working to reintroduce supersonic passenger travel for the first time since the Anglo-French Concorde retired in 2003.
The rule “modifies and clarifies existing regulatory procedures for a more efficient way to obtain FAA approval to test supersonic aircraft.”
The rule “will provide a streamlined, clear line of sight on how to gain approval to conduct flight testing. This is a necessary, key step for further research and development in an emerging segment – and ultimately bring their aircraft to market,” Elwell added in remarks provided by the FAA.
According to a draft of the FAA proposal reviewed by Reuters, the agency said the proposed updates “are intended to support the growth of the civil supersonic industry” and will “provide increased clarity and information to applications as to the requirements for special flight authorizations to test supersonic aircraft.”
In February, Boeing Co said it had made a significant investment in supersonic business jet developer Aerion, as the world’s biggest planemaker looks to tap into rising demand for high-end aircraft that can reduce travel time.
Boeing will provide engineering, manufacturing and flight testing services for Aerion’s $120 million supersonic business jet, which is slated for its first flight in 2023.
Congress last year approved legislation directing the FAA to issue proposed rules setting noise standards for landing and takeoff, and noise test requirements for civil supersonic aircraft by March 2020, and modernizing the application process by December 2019.
Next generation supersonic jets, while quieter and more fuel efficient than the Concorde, have difficulty meeting existing noise levels and carbon emissions standards for conventional planes due to engine constraints and higher fuel burn.
(Reporting by David Shepardson; Editing by Bill Berkrot)
PARIS (Reuters) – American Airlines is edging towards a deal with Airbus to buy up to 50 newly launched A321XLR extended-range narrow-body aircraft including some converted from existing orders of other models, people familiar with the matter said.
Airbus and American Airlines declined comment.
The people said the order, if confirmed, could be announced to coincide with the Paris Airshow, though officials from the airline were not expected to attend the show in person.
One of the people said that American Airlines was likely to include the world’s longest-range single-aisle jet in its fleet, but the timing of a decision remained unclear.
(Reporting by Tim Hepher, Editing by Eric M. Johnson)
PARIS, June 17 (Reuters) – Airbus is set to win a deal to sell jets worth around $4.5 billion at list price to Philippines airline Cebu Air after a face-off with rival Boeing, industry sources said.
The deal involves 16 A330neo wide-body jets and around 10 of the newly launched A321XLR extended-range narrow-body aircraft, the sources said, asking not to be identified.
Together with other aircraft and options the deal could involve as many as 40 aircraft, one of the sources added.
Airbus declined comment. Cebu officials could not be reached for comment.
The deal follows a fight for business at the Philippines budget airline as Airbus seeks a new foothold for its A330neo in the face of heavy competition from Boeing’s 787 Dreamliner.
The carrier had at one point been seen as likely to proceed with a Boeing 787 order, prompting Airbus to rescue the deal .
Cebu Air plans to expand its fleet with new aircraft that burn less fuel, CEO Lance Gokongwei said last month.
Asian carriers are looking to renew their long-haul fleets as passenger demand remains robust despite a decline in cargo.
(Reporting by Tim Hepher; Editing by Laurence Frost)
PARIS, June 17 (Reuters) – Europe’s Airbus agreed on a deal to sell 14 A330neo wide-body passenger jets to Virgin Atlantic on Monday valued at $4.1 billion, the companies announced at the Paris Airshow on Monday, with an option for the airline to order six more.
The British-based airline based placed firm orders for the upgraded A330 model, which it had been evaluating against the Boeing 787 Dreamliner.
The jets, which will be powered by Rolls-Royce Trent 7000 engines, will replace the airline’s A330ceos from 2021, Virgin Atlantic said.
(Reporting by Alistair Smout, editing by Louise Heavens)
PARIS (Reuters) – Airbus has broken records by launching the longest-range narrow-body jetliner at the Paris Airshow, but planemakers are having to rethink their mantra on comfort as they squeeze ever more miles out of jets designed for shorter trips.
Airbus and Boeing have been promoting new carbon-fibre long-haul aircraft such as the 787 Dreamliner and A350, which offer roomier cabins and help passengers avoid jet lag by providing a cabin pressure closer to that felt on the ground.
But they have also been adding more range and capacity to older and narrower models such as the A320neo family and the 737 MAX as airlines demand more flexibility with the advantages of highly efficient single-aisle planes, supporting low fares.
Airbus pushed that further on Monday by adding a longer stride to the A321neo with its new A321XLR, whose range of 4,700 nautical miles leapfrogs the out-of-production Boeing 757 and nudges it into the long-jump category enjoyed by wide-body jets.
It also eats into a range category targeted by a possible new mid-market twin-aisle jet, the NMA, under review by Boeing.
But there is a debate over whether passengers will enjoy flying longer distances in medium-haul planes, or at what price.
Airline bosses on the long-haul low-cost panel at the Paris Air Forum on Friday differed over whether extended-range narrow-body jets or wider twin-aisles were best suited for their growing industry.
In particular, the rise of the single-aisle long-distance jet involves revisiting years of industry marketing about the benefit of escaping jet lag and fatigue on long trips.
Aircraft cabins are pumped to a higher pressure than the ultra-thin outside air at cruising altitude. But the pressure is still lower than at sea level due to structural limitations.
That’s not a problem for shorter trips but travel experts say the higher altitude setting on older planes can contribute to jet lag on long flights, worsening the effect of time zones.
WELL BEING
Although Airbus stresses the 1980s-designed A320 fuselage is wider than the competing 737 MAX and therefore has roomier seats, it also has a lower cabin pressure than modern long-haul alternatives like the Boeing 787 Dreamliner or Airbus A350.
On those airplanes the cabin is pressurised at a level equivalent to 6,000 feet compared with 8,000 feet for the A320 and most other metal-built jets of all sizes.
For the Airbus A330neo wide-body jet the cabin altitude is above 7,000 feet but still below 8,000 feet.
“XLR cabin pressure could be an issue,” said an airline executive who has studied the plane, asking not to be named.
The company itself set out the disadvantages of flying with a high cabin altitude on long journeys when it launched the business-jet version of the A320neo family in 2015.
“A lower cabin altitude makes most sense on long flights, especially towards their end, when an aircraft is able to reach its highest cruising altitude,” Airbus said then on its website.
For the business jet version, Airbus was able to lower the cabin altitude below 6,400 feet. But it could only do so by reducing the maximum number of trips, which matters relatively little to luxury operators but is less attractive to airlines.
That said, cabin pressure is one of many factors influencing the feel of a cabin and is rarely marketed separately.
“Everyone is pushing the ‘well being’ trend … but an A321XLR will arguably be more comfortable than a 9-abreast Boeing 787,” passenger experience expert John Walton said, referring to denser seat configurations used by some airlines.
Placing the first order for the XLR, leasing magnate Steven Udvar-Hazy, executive chairman of Air Lease Corp, said: “We are working on a number of improvements in the cabin to accommodate long-haul operations”.
The A321XLR is expected to be able to fly around eight hours in most cases, linking U.S. eastern cities deep into Europe.
The head of International Airlines Group’s low-cost long-haul carrier Level, Vincent Hodder, told the Paris Air Forum the XLR could be configured to fly as long as 10 hours. Level and others are studying it, he said.
Airbus is chasing potential customers including American Airlines and JetBlue for the XLR and aims to grab up to 200 orders. It is expected to announce a deal with U.S. airline investor Indigo Partners later this week.
(Reporting by Tim Hepher, Editing by Louise Heavens and Mark Potter)
LE BOURGET, France June 17 (Reuters) – Boeing Co said on Monday it would supply parts for A320 jetliners made by its competitor Airbus to supply British Airways, the first such agreement by the U.S. planemaker to support an Airbus aircraft.
Under the agreement announced at the Paris Airshow, Boeing will manage and maintain a global exchange inventory of parts for Airbus’ A320 and A320neo single-aisle aircraft.
The deal reflects a push by the world’s largest planemaker into the higher-margin services business that includes aircraft parts and analytics, which Chief Executive Officer Dennis Muilenburg aims to grow to $50 billion in revenue in a decade.
“We were happy to put our hat in the ring and give a choice to British Airways,” Boeing Global Services Chief Executive Stan Deal told reporters.
British Airways also signed a deal for three landing gear exchanges for its 777 widebody fleet, Boeing said.
Separately on Monday, Boeing signed an agreement through its subsidiary Jeppesen to provide United Airlines with analytics services to help the carrier optimize crew planning operations through its entire fleet.
(Reporting by Eric M. Johnson and Tim Hepher; Editing by Alexander Smith and Mark Potter)
June 14 (Reuters) – Boeing Co on Friday said it would buy aerospace interiors company EnCore Group, the planemaker’s second foray into aircraft seats after it partnered with auto seats maker Adient last year.
The deal could help cut delays in the supply chain and improve profit margins for the planemaker, and is expected to close by the end of the second quarter of 2019.
California-based EnCore designs, certifies and produces airplane galleys and seats for airlines, and also supplies components to Boeing.
Last year, the planemaker moved into making aircraft seats with a joint venture with car seating leader Adient to reduce costly delays to deliveries.
Traditionally, aircraft seat makers sell seats to airlines, a process that can involve multiple customized designs and regulatory approvals and in turn lead to industrial delays.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Shinjini Ganguli)
