Paris Review

What a difference two years can make. At the 2009 Paris Air Show, Airbus’s big splash was an order for just 10 A350-900s valued at $2 billion from AirAsia, part of a show haul that included firm orders for 58 aircraft valued at nearly $6.4 billion at list prices and MOUs for an additional 69 planes worth $6.5 billion. At this year’s Le Bourget (June 20-26), fast-growing AirAsia again placed the most high-profile order of the show—this time for a whopping 200 A320neos valued at $18.5 billion.

That order was part of an Airbus show tally that included purchase orders for 418 aircraft (some of which had been previously announced as MOUs) valued at about $44 billion, and new MOUs for another 312 aircraft worth about $28.3 million. The star of the show was Airbus’s re-engined narrowbody offering; by show’s end, commitments for the A320neo topped 1,000.

New York-based Bernstein Research said in its “Paris Air Show Perspectives” report that the show was “mixed for Boeing, with high pressure coming from the neo, but confirmation of market demand for its planned rate increases.” Bernstein noted that the “strong neo orders appeared to be even beyond Airbus expectations.”

There was great deal of focus on Bombardier’s CSeries at the Paris Air Show as the manufacturer looks to begin to fulfill expectations on the order side for its foray into the narrowbody aircraft sector. It announced no CSeries orders at last year’s Farnborough Airshow. In an interview with ATWleading up to Le Bourget, Bombardier Commercial Aircraft President Gary Scott insisted he has “no concern about orders.” He explained, “There are many customers who are actively engaged with us and highly interested in the airplane. Many of these discussions are at an advanced stage. There will definitely be more orders this year.”

The program achieved two milestones during the show as Korean Air signed a letter of intent to purchase 10 CS300s, becoming the first Asian airline to commit to the aircraft, and Pratt & Whitney test flew for the first time the PW1500G geared turbofan engine designated to power the aircraft.

“This is a marquee customer,” Scott told a show press conference held to announce the KE deal. “Our first [CSeries] customer from Asia . . . So we now have customers from North America, from Europe and from Asia.”

The LOI is for the purchase of 10 CS300s, plus 10 options and 10 purchase rights. KE Senior VP Walter Cho told reporters in Paris that the aircraft likely will be used to operate short-haul routes from Seoul Incheon to destinations in China, Japan and Southeast Asia. Both Scott and Cho indicated that finalizing the order is close, and the KE executive emphasized that the airline plans to take advantage of the options and purchase rights.

Meanwhile, Pratt flew the PW1524G engine on a flying test bed Boeing 747 from Pratt & Whitney Canada’s Mirabel Aerospace Centre. Briefing reporters in Paris, Pratt VP-Next Generation Product Family Bob Saia said that “first flight went flawless.” The aircraft was in the air for about 2 hr. with another hour spent running the engine while the 747 was on the ground, he noted.

“We can show the engine is real, it’s here, it works,” he commented. “The fundamentals of this gear, the fundamentals of this design architecture . . . have all been validated.” Testing will allow for gathering data that will lead to the “refinement” of the engine, he added. The PW1500G test program will comprise eight test engines and last about 18 months. Pratt is targeting engine certification in 2012 with EIS planned for 2013. 

At show’s end, Bombardier’s CSeries order book stood at 123 aircraft. Firm-order customers for the CSeries include Republic Airways Holdings (40 CS300s), Lufthansa (30 CS100s), Lease Corp. International (17 CS300s, 3 CS100s), Braathens Aviation (5 CS100s and 5 CS300s), an unidentified airline (3 CS100s), an unidentified “major network carrier” (10 CS100s) and an unidentified European customer (10 CS100s). There are 109 options on the books.

Boeing appeared to be moving toward an all-new solution for the replacement of the 737, the biggest selling commercial jet aircraft in history. Addressing media at the Paris Air Show, Boeing Commercial Airplanes President and CEO Jim Albaugh said an all-new aircraft would offer “new technology which exists” and could enter service in 2019. In his remarks, Albaugh was upbeat on the all-new solution rather than re-engining the 737NG. He said that while a new aircraft carried more risk, it “also promised far greater rewards.”

However, Boeing apparently will re-engine the 737; a month after the show, American Airlines committed to order 100 of a new variant 737 with CFM Leap-X engines.

Boeing VP-Advanced 737 Product Development Mike Bair said that an all-new aircraft, dubbed the 797 by Air Lease Corp. Chairman and CEO Steven Udvar-Hazy, would be a composite but the actual percentage is yet to be determined. However, a major challenge will be the production system. Albaugh said more work would be kept in-house compared to the 787 program. But with a projected build rate of 60 aircraft per month, understanding and managing the production system will be essential, Bair commented.

If Boeing were to re-engine, the new 737 would surpass the A320neo in terms of operating performance, he maintained. “A re-engined 737 would offer 10% to 12% better fuel burn and an improvement of 6% to 7% in cash operating costs,” Bair asserted, adding that the 737 could be compatible with both Pratt & Whitney’s PW1000G and CFM International’s Leap-X, the two engine choices on the A320neo.

Regarding a potential all-new aircraft, Bair said Pratt, GE Aviation and Rolls-Royce were all working on new designs. The improvement in fuel burn would be 20% while the cash operating cost advantage would be a percentage “in the low teens,” he stated. 

Udvar-Hazy told ATW that he “had a bias to an all-new family” and, “as a passenger,” he favored the twin-aisle option.  He said that he wanted the aircraft to “be sized between 160 and 230 seats,” adding, “The 737 replacement is the highest priority for Boeing.”

Boeing VP-Business Development and Strategic Integration Nicole Piasecki told this magazine that the company would continue to make small but significant improvements to the 737NG going forward and expected to be building the aircraft well into the next decade alongside the replacement.

US Agriculture Secretary Tom Vilsack encouraged development and production of biofuels to power commercial aircraft, telling a Paris Air Show audience there has been “extraordinary progress in the last 12 months” in understanding how biofuel blends can power flights.

“I think we’re nearing a tipping point” in terms of building momentum toward use of biofuel on commercial flights, he said. “I think [biofuel powering airline flights is] not long-term. In the short term you’ll see the benefits.”

Vilsack on June 22 became the first US agriculture secretary to attend a Paris Air Show, which this year featured a sizable “Alternative Aviation Fuels Showcase” in a Le Bourget exhibit hall. His visit came just two months after US President Barack Obama directed the Depts. of Energy and Agriculture and the US Navy “to work with the private sector to create advanced biofuels that can power not just fighter jets but trucks and commercial airliners.”

After visiting with air show exhibitors touting various aviation biofuel solutions and others involved in the issue, including Commercial Aviation Alternative Fuels Initiative Executive Director Richard Altman, Vilsack gave brief remarks and answered questions from reporters. He indicated that President Obama is planning a major announcement this year regarding the US government’s effort to help develop biofuel.

He said he is trying to educate US lawmakers about “how close we are to getting over the mountain” to wide-scale biofuel production. The private sector needs “just a little push” from government in the form of loan guarantees and R&D grants to mitigate the risk of moving forward, he said, emphasizing that the plant-derived biofuels being developed to power aircraft do not interfere with food stocks.

Vilsack told ATW that if a market develops for biofuel to power aircraft, the infrastructure to produce and distribute it will quickly build up. “I think the infrastructure is going to be there if the market is there,” he explained. “I’m sure if you have [airlines] interested, we’ll get” biofuel to airports.

He added that biofuel is an “opportunity to diversify farming” in the US. “This is a wonderful opportunity for rural America,” he said, pointing out that many US rural areas have been hard hit by unemployment. He commented, “When policymakers are aware of potential job opportunities [that could be created by large-scale biofuel production] in rural areas that have had high unemployment,” they become interested in backing biofuel development and are “reluctant” to cut R&D funding.

ATR has plenty of reasons to celebrate its 30th birthday with a big bang after increasing its Paris Air Show tally to a record 60 new orders and 37 options.

Ecuador’s TAME ordered three ATR 42-500s valued at $54 million at list prices and Nordic Aviation Capital signed a contract for 10 ATR 72-600s plus 10 options to cap off Le Bourget for the European turboprop manufacturer. The 97 orders and options announced at the air show joined 28 orders and five options previously revealed this year, lifting 2011 sales to 130 aircraft. ATR’s backlog stands at 233 aircraft valued at $5.4 billion.

“This is a totally outstanding and historical air show for ATR. Our list of customers, both airlines and leasing companies, is dramatically increasing, and ATR aircraft are today in almost 100 countries,” said CEO Filippo Bagnato, concluding that
this “clearly underlines the ATR product as the optimal solution for regional transportation.”

The NAC order marks the lessor’s first speculative purchase of an ATR aircraft, CCO Jim Murphy confirmed to ATW. The privately held leasing company will take delivery of the new aircraft in 2014 and 2015, lifting its ATR portfolio to more than 100 units. NAC has placed ATRs worldwide and sees strong demand in Asia and Latin America for the turboprops, Murphy said. He added, “We believe that also North America, specifically the US, will need more turboprops in the next two years.”