Le Bourget, France, June 19 (Reuters) – Airbus unveiled an aircraft deal with Taiwan’s China Airlines on Wednesday, snatching the carrier’s medium-haul fleet renewal from Boeing a day after its U.S. rival made a shock entry into the single-aisle fleet of British Airways owner IAG.
The European planemaker said China Airlines had signed a preliminary deal to buy 11 A321neo aircraft, worth about $1.4 billion at list prices, while leasing another 14.
Although much smaller than the IAG letter of intent for 200 Boeing 737 MAX announced on Tuesday, the China Airlines deal signals intensified competition in Asia where Boeing this week predicted 40 percent of jets would be delivered over the next 20 years.
Airlines can rarely be persuaded to jump ship to rival suppliers because of the costs of training and parts, but this week’s Paris Airshow has witnessed two such announcements as sold-out planemakers mount incursions to continue their growth.
In a further competitive twist, Boeing announced on Monday it would take over the supply of spare parts for the remaining Airbus A320 fleet at British Airways.
China Airlines announced the leasing part of the deal in May and Reuters reported it would pave the way for the Taiwan carrier to switch its medium-haul fleet to the Airbus A320neo.
The rare deal to replace older 737s took years to complete and was drafted before the 737 MAX was engulfed by a crisis involving two crashes and a worldwide grounding, sources said.
LE BOURGET, France, June 19 (Reuters) – Wizz Air will use 20 new extended-range, narrow body Airbus jets primarily to connect existing destinations in its disparate network rather than to fly to new places, the budget airline’s Chief Executive Jozsef Varadi said on Wednesday.
Indigo Partners, the private equity firm of veteran low-cost airline investor Bill Franke, agreed on Wednesday to acquire 50 of the new long-range version of Airbus’ A321neo jet, 20 of which will go to Wizz.
Wizz, which operates a fleet of 113 Airbus A320 and Airbus A321, would not need to change its operating model to accommodate the new A321XLR jets, Varadi said, as it would be able to fly essentially the same planes a little longer.
“Our network spans from the Canary Islands to Astana in Kazakhstan, from Reyjavik in Iceland to Dubai,” Varadi told Reuters after the announcement at the Paris Airshow.
“The XLR gives use the opportunity to connect more dots in our existing network. This is what we’re looking at.”
Airbus opened the Paris Airshow with the launch of the A321XLR, but the announcement was overshadowed on Tuesday when Boeing said British Airways-owner IAG intended to order 200 of its grounded 737 MAX jets.
Hungary-based Wizz, which is focussed on central and eastern Europe, said it had used existing option positions to secure the deal for the A321XLRs, bringing the airline’s total of outstanding firm orders for Airbus aircraft to 276 jets.
Varadi said that in the longer term, it was possible the jet would help open routes to new destinations, but it was not a priority.
“We have always been excited about planting new flags in new territories,” Varadi said. “But the vast majority of the XLR capacity will come in existing markets.”
(Reporting by Alistair Smout; Editing by Mark Potter)
PARIS, France, June 18, 2019 – Air Lease Corporation (NYSE: AL; “ALC”) announced today long-term lease placements for two new Airbus A320neo and two new Airbus A321neo LR aircraft with Peach Aviation Limited (Japan). The four new Airbus aircraft are scheduled to deliver to Peach starting in 2020 through 2022 from ALC’s order book with Airbus.
“ALC is thrilled to confirm this significant lease placement with Peach for four new Airbus aircraft and contribute to the airline’s growing all-Airbus A320 fleet,” said Steven F. Udvar-Házy, Executive Chairman of Air Lease Corporation. “The A320neo and A321neo LR offer Peach the most technologically advanced, fuel-efficient aircraft that will bring a new level of passenger comfort and convenience to the Japanese market.”
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including expected delivery dates. Such statements are based on current expectations and projections about our future results, prospects and opportunities and are not guarantees of future performance. Such statements will not be updated unless required by law. Actual results and performance may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors, including those discussed in our filings with the Securities and Exchange Commission.
About Air Lease Corporation (NYSE: AL)
ALC is a leading aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. ALC and its team of dedicated and experienced professionals are principally engaged in purchasing commercial aircraft and leasing them to its airline customers worldwide through customized aircraft leasing and financing solutions. For more information, visit ALC’s website at www.airleasecorp.com.
About Peach
Peach Aviation began services based out of Kansai Airport in March 2012. Currently, in addition to Kansai Airport, Peach has hubs at New Chitose Airport, Sendai Airport, and Naha Airport with 25 aircraft that service 17 domestic routes and 16 international routes. It operates approximately 100 flights per day and is used by over 13,000 passengers daily. Peach will complete its integration with Narita-based airline Vanilla Air by the end of the 2019 fiscal year, aiming to become Asia’s leading LCC.
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)
PARIS (Reuters) – Saudi Arabian Airlines is close to placing a multi-billion-dollar order for aircraft at least partly involving Airbus jets, people familiar with the matter said on Wednesday.
The carrier, known as Saudia, has been negotiating with both Airbus and Boeing for wide-body jets for months and its chief executive told Air Transport World in March that a decision for planes like the Airbus A350 or Boeing 787 was expected soon.
The order for wide-body aircraft, which could also include a number of smaller A320-family narrow-body aircraft, may be announced at the Paris Airshow, the people said.
Airbus declined comment.
Saudia Arabian Airlines did not immediately respond to a request for comment.
Airbus and Boeing are battling for wide-body aircraft orders worth well over $10 billion as the clock ticks towards next week’s Paris Airshow, industry sources said on Tuesday.
(Reporting by Tim Hepher, Alexander Cornwell; Editing by Sudip Kar-Gupta)
Aeroflot has flown at least 129 fewer Sukhoi flights since the crash
Petition to ground plane has over 200,000 signatures
MOSCOW, June 3 (Reuters) – Russian airline Aeroflot has scaled back the number of Sukhoi Superjet 100 flights it operates after one of its planes made a crash-landing last month, killing 41 people, according to data provided by a flight tracking website.
Flightradar24 data shows Aeroflot has also at times substituted Airbus or Boeing planes for the Superjet, the first new passenger jet developed in Russia since the Soviet Union collapsed.
Fallout from the crash risks undermining the aircraft’s reputation at a time when Russia is promoting another domestically made passenger plane, the M-21, as a rival to Boeing and Airbus.
Aeroflot and Sukhoi Civil Aircraft, the Superjet’s maker, declined to comment on the data or on the use of other aircraft instead of the Russian plane. Both the airline, Russia’s national flag carrier, and the manufacturer have said in the past that the aircraft meets all relevant international safety standards and will continue to be made and used.
The cause of the May 5 crash, the second deadly accident involving the Superjet in nine years of service, has not yet been established. Russian authorities said afterwards there was no reason to ground the Superjet.
Yet Aeroflot flew 129 – or about 7% – fewer Superjet flights in the two weeks after the crash than in the previous fortnight, the Flightradar24 data showed.
In one case, frightened passengers on a Sukhoi refused to continue their journey after an aborted take-off, forcing Aeroflot to lay on an Airbus instead, an airline industry source with direct knowledge of the matter said, a version of events corroborated separately by Russia’s RIA news agency.
Aeroflot after the crash began paying extra attention to safety checks and to scale back the Superjet’s usage to try to reassure passengers, the same source said.
More than 213,000 people have signed a petition demanding the plane be grounded since May 5.
‘WHO NEEDS IT?’
Some Russian and foreign operators have complained about the difficulty of servicing the Superjet due to delays in sourcing spare parts. Irish airline CityJet and Belgian carrier Brussels Airlines turned their back on the Superjet citing those reasons.
State officials and airline executives say the airliner spends about half its time on the ground undergoing maintenance, and can fly only about a third as much as foreign-made rivals in a 24-hour period when in use.
They blame a lack of readily available spare parts and the complexity of servicing its engines.
Vitaly Savelyev, Aeroflot’s CEO, told Russian news agency TASS in 2017 that his company, which is majority-owned by the Russian state, might not have bought the Superjet at all if it was a private company.
Aeroflot, which has promised to buy a further 100 Superjets on top of the 49 it has already, is in a difficult situation because of the project’s political importance for Russia.
There are signs however that even some allies of President Vladimir Putin are growing weary of the aircraft.
Valentina Matviyenko, speaker of the upper house of parliament, in November publicly rebuked the transport minister over the large sums she said had been pumped into the Superjet in vain.
Russian newspaper Novaya Gazeta estimated in 2012 that $7 billion had been spent on the project, while Sukhoi has put the figure at $2 billion.
“Who needs it? … It’s not good for anything,” said Matviyenko. “Aeroflot says we bought them and they sit on the ground. Nobody abroad is buying them … What have we achieved?”
Mexican low-cost carrier Interjet, citing maintenance and parts problems, told Mexican daily newspaper El Universal just over a week after the crash that it was trying to sell its 20 Superjets and favoured Airbus 320s instead.
Regional carrier Yamal Airlines, Russia’s second biggest Superjet operator after Aeroflot, said a day after the crash that it was cancelling its planned purchase of 10 of the planes. It cited high servicing costs.
And RusLine, another regional carrier, told Kommersant it was scrapping provisional plans to obtain 18 Superjets as part of a leasing deal. The paper cited RusLine’s owner Nikolai Ulan as saying he thought the plane was safe but that passengers would be afraid to fly on it, making it harder for him to break even. RusLine did not respond to a request for comment.
PASSENGER FEARS
The Superjet, which entered service in 2011, is predominantly operated inside Russia by regional airlines, corporations and government entities. Sukhoi had hoped to sell hundreds, but slack demand means only 138 of the planes are in use.
On the Moscow-Murmansk route, the one taken by the plane involved in the fatal crash, Aeroflot replaced the Superjet with either Boeing 737s or Airbus A320s in the five days after the accident, a practice it partially continued the week after.
This was done in direct response to the crash in order to try to calm passenger fears, the same airline source said.
There have been a spate of safety-related incidents and cancellations since May 5.
In one case, a Superjet flight from Moscow to Riga was held up after passengers noticed a burning smell and demanded a new plane. Engineers found nothing wrong, one of the passengers told state TV.
In another, on May 18, passengers on a Moscow-bound flight from the city of Ulyanovsk took fright after their Superjet aborted take-off because of a warning about the hydraulic system.
“Passengers were told that the flight was being delayed for technical reasons. Of course, after the catastrophe, they started to panic and refused to fly on the same plane. The psychological factor came into play,” the airline source with direct knowledge of the situation told Reuters.
Aeroflot flew the passengers to Moscow the next day on an Airbus A320 and engineers found nothing wrong with the Superjet involved in that incident either, the transport prosecutor’s office said.
Yevgeny Dietrich, Russia’s transport minister, said the situation was not “radically changed” from the pre-crash period.
“In fact, delays and cancellations occurred previously. You simply wrote about them less,” Dietrich told reporters.
His statement and the crash have highlighted the fact that many Superjets do not fly very often.
Flightradar24 data shows that 37 of 127 Superjets in commercial use globally did not make a single flight from April 22 until May 19, and that 45 did not make more than 10 flights during that period.
That tallies with expert reports, which have said foreign-made planes in Russia average nine hours flying time in every 24-hour period compared to between just three and four hours for the Superjet.
The same industry source said only about 50% of Aeroflot’s Superjets flew regularly and that Superjet pilots, who are paid for completed flights, had their salaries topped up to compensate for time spent on the ground.
(Writing by Andrew Osborn and Gleb Stolyarov; Editing by Giles Elgood)
— Delivery of the 1000th nacelle for A320neo program out of Foley, Alabama
— Delivery of the 9000th V2500 nacelle
— Continued support for the A220 nacelle program ramp-up
FOLEY, Ala., May 30, 2019 /PRNewswire/ — Today Collins Aerospace Systems celebrated its 45-year relationship with Airbus by delivering the 1,000th nacelle for the A320neo program, delivering the 9000th V2500 nacelle, and continuing to support the ramp-up of the A220 nacelle program. These milestones were commemorated at a ceremony hosted by Collins Aerospace at its Foley, Alabama facility. More than 900 employees at the facility were joined by leaders from Airbus in the U.S., as well as Alabama Congressman Bradley Byrne, to mark the milestones. Collins Aerospace is a unit of United Technologies Corp. (UTX).
The
relationship with Airbus dates back to the A300, the first Airbus
aircraft. The milestones achieved are due to the strong collaboration
and hard work from both companies.
“This celebration and the work we do with Airbus goes far beyond Foley
today. Teams across our worldwide sites are working with pride and
commitment to provide on-time delivery and quality, and ensure that our
relationship with Airbus remains strong for years to come,” said Jim Pollock,
Collins Aerospace Vice President of Airbus Programs. “We’re now
integrating A320neo engines with our advanced nacelle systems on three
continents and continuing to introduce new manufacturing innovations —
such as robotic painting systems and advanced fastening tools — to meet
the increasing global demand for air travel.”
In
support of the Airbus A320neo program, Collins has invested hundreds of
millions of dollars to expand manufacturing capacity at six global
sites.
Collins
Aerospace’s innovative nacelle system for the Airbus A320neo is
performing with 99.99% percent dispatch reliability. There are currently
more than 750 Collins nacelles operating on A320neo aircraft with 32
airlines.
“In
more than a million fleet hours since the A320neo’s entry into service,
there have been less than 10 delays and zero cancellations associated
with the Collins nacelle,” said Pollock. “This type of reliability is a
testament to the commitment and dedication of the program, engineering,
and airline support teams.”
About Collins Aerospace
Collins Aerospace Systems, a unit of United Technologies Corp. (UTX), is a leader in technologically advanced and intelligent solutions for the global aerospace and defense industry. Created in 2018 by bringing together UTC Aerospace Systems and Rockwell Collins, Collins Aerospace has the capabilities, comprehensive portfolio and expertise to solve customers’ toughest challenges and to meet the demands of a rapidly evolving global market. For more information, visit CollinsAerospace.com
WELLINGTON
(Reuters) – Air New Zealand Ltd said on Monday it has ordered eight
Boeing Co 787-10 Dreamliner jets worth $2.7 billion (2.12 billion
pounds) at list prices, to be powered by General Electric Co engines, as
part of a drive toward increased efficiency.
New
Zealand’s flag carrier also trimmed its earnings outlook citing higher
fuel prices, and said problems with Rolls-Royce Holdings PLC engines and
a moderation in demand growth have impacted its financial and
operational performance.
The
new plane order confirmed a Reuters report last week that Boeing had
beaten out rival Airbus SE, which had proposed the A350 for the hotly
contested deal.
The
airline, which has Rolls-Royce engines on its existing fleet of 13
787s, announced it had switched to GE engines for the new order.
The
787s will replace eight older 777-200ERs and leave the carrier with an
all-Boeing wide-body fleet as well as Airbus A320 family jets for
shorter flights.
The order comprises eight long-range 787-10s, with the agreement including an option to increase the number of aircraft to 20.
The
deal also gives the airline, which has previously mentioned a goal of
flying Auckland-New York non-stop, the option to switch some aircraft to
the longer range 787-9s.
“With
the 787-10 offering almost 15 percent more space for customers and
cargo than the 787-9, this investment creates the platform for our
future strategic direction and opens up new opportunities to grow,” Air
New Zealand Chief Executive Christopher Luxon said in a statement.
The eight jets will enter the Air New Zealand fleet between 2022 and 2027, the airline said.
“The
787-10 has 95 percent commonality with Air New Zealand’s existing fleet
of 787-9s and will provide the airline with added benefits in terms of
capacity and overall operations,” Vice President of Boeing Commercial
Sales and Marketing for Asia Pacific Christy Reese said.
The
787-10 is the largest member of Boeing’s Dreamliner series, and can
serve up to 330 passengers in a standard two-class configuration, about
40 more than the 787-9 airplane.
The
airline said the 787 was 25 percent more fuel efficient than the jets
it is replacing, and noted that carriers typically receive large
discounts on the list price of jets.
HEADWIND
In
a separate announcement, Air New Zealand trimmed its 2019 earnings
before taxation, saying it now expects to beat NZ$340 million ($223
million). That compared with a forecast range of NZ$340 million to
NZ$400 million announced in late March.
The change was due to an additional NZ$25 million headwind from increased jet fuel prices, the company said.
The
airline also said Rolls-Royce engine issues – in which components
prematurely fail or needed extra checks – impacted 2,500 flights and led
to 150 cancellations, affecting its financial performance.
Air
New Zealand in March launched a two-year cost reduction programme and
said it would defer spending on aircraft by about NZ$750 million ($491
million) as part of a business review.
In
February, Air New Zealand slashed domestic fares by as much as 50
percent in a shake-up of its pricing structure in response to the
slackening travel market.
(Reporting by Praveen Menon in Wellington, Aditya Soni in Bengaluru and Jamie Freed in Singapore; Editing Richard Pullin and Christopher Cushing)
PARIS (Reuters) – European missile maker MBDA’s chief executive is returning to Airbus as head of strategy as the planemaker seeks to modernise its factory system and explores future options in defence, two people familiar with the matter said.
Antoine Bouvier, 59, replaces Patrick de Castelbajac who becomes head of Airbus Asia-Pacific, the sources said. Castelbajac’s responsibility for Airbus international operations had already been transferred to sales chief Christian Scherer.
At Airbus, Bouvier will be embarking on a battle of wits with a new strategy head at arch-rival Boeing CO.
Chris Raymond, until recently head of Boeing’s Autonomous Systems business, recently became vice-president for enterprise strategy under finance director Greg Smith, sources said. Raymond’s appointment has not been officially announced.
Airbus and MBDA declined to comment on Bouvier’s appointment, which was first reported by AeroDefenseNews. It is the latest step in a management reshuffle accelerated by the recent official appointment of Guillaume Faury as Airbus CEO.
Bouvier, a former civil servant who narrowly missed out on running France’s DGA defence procurement agency two years ago, brings experience in forging defence partnerships to Airbus, which is embroiled in a row with Germany over arms controls.
He is expected to be replaced at MBDA by former OneWeb chief Eric Beranger.
Although there is fierce day-to-day competition, with Taiwan’s China Airlines opting last week to switch to Airbus, the European planemaker is not expected to exploit the grounding of Boeing’s 737 MAX jetliner for now, industry sources said.
NEXT GENERATION
The future of the Airbus A320neo and Boeing 737 MAX – the industry’s most successful models – is seen as strategically entwined and insiders say Airbus is also worried about the impact of the grounding on global certification..
But the planemakers are crafting crucial strategies for the next generation of single-aisle jets from about 2030 – both likely to define the aircraft industry well beyond mid-century.
Insiders say Faury wants Airbus to focus more on industrial strategy and closing a perceived gap with Boeing in production technology, as well as responding to the threat of increased environmental regulation of air travel, as well as new products.
Airbus must also assess how to respond to rising defence spending after its failure to merge with Britain’s BAE Systems in 2012 left it heavily skewed towards commercial markets that are now approaching the end of an extended upcycle.
It is involved on the German side of a nascent Franco-German fighter project along with French partner Dassault Aviation but faces competition for valuable systems work and a growing spat with the German government over export controls.
At MBDA, Bouvier helped forge an Anglo-French agreement on the use of shared missile technology.
Bouvier followed the classic path of a French mandarin from the prestigious Polytechnique engineering school to France’s ENA civil service academy. He had been linked with a number of top aerospace posts such as Safran and Thales.
“His appointment will be very credible with the French government,” a person familiar with the appointment said. France and Germany own 11 percent each of Airbus.
(Reporting by Tim Hepher; Editing by Luke Baker and Alexander Smith)
