Farnborough International Airshow News

(L to R) Jim Albaugh, president and CEO, Boeing Commercial Airplanes; Ahmed Bin Saeed Al-Maktoum, chairman and chief executive, Emirates Airline and Group; Mohammed bin Rashid Al-Maktoum, Prime Minister and VP of the UAE and Ruler of Dubai, and David Joyce, president and CEO, GE Aviation.

Emirates pushes for 777 upgrade as it orders 30 777-300ERs

Emirates Airline kicked off the Farnborough International Airshow with an order for 30 777-300ERs valued at $9.41 billion while stating that it hoped to have an answer from Boeing by October on its request for an upgraded model of the twinjet. EK, the world's largest 777 operator with a fleet of 86 in service, has another 16 -300ERs on order and is the only airline to operate every variant.

"Since we took delivery of our first 777 14 years ago, the airplane's reliability, performance and operating economics have firmly established it as the backbone of our fleet," said Group Chairman and Chief Executive Ahmed bin Saeed Al Maktoum.

Boeing Commercial Airplanes President and CEO Jim Albaugh said, "Emirates is today one of the world's leading airlines and has played an important role in the success of the 777 with its strong support and valuable feedback over the years. Today's order underscores the airline's confidence in the airplane which forms the backbone of its fleet. For that we are very grateful."

Emirates President Tim Clark told ATW on the sidelines of the press conference that EK has had one round of discussions with Boeing on its “777 wish list” and he expects a response by October. He said Monday’s order has no provision for the -300ERs to be swapped for the upgraded model when it comes. Cornerstone of the airline’s requirements is a 50-tonne payload capability to Los Angeles whereas currently it achieves 34-35 tonnes to San Francisco.

Clark was upbeat on the ability of Boeing’s 777 management team, now headed by its former chief Lars Anderson, to deliver on EK's requirements. “If anyone can do it, Lars can,” he said. Anderson, who had retired, was lured back last year by Albaugh. “We know what we want; we will wait and see whether a hybrid will do the job,” Clark said. That hybrid may be a mix of more thrust, composite wing and a slight stretch, he explained. “All things are on the table,” Albaugh told ATW.—By Geoffrey Thomas

Airbus sales top triple digits on first day

Airbus started the first day of the Farnborough International Airshow with firm orders from GECAS, Aeroflot and Air Lease Corp. for 122 aircraft.

Air Lease Corp., which was created by International Lease Finance Corp. co-founder and former chairman and CEO Steven Udvar-Hazy, ordered 31 A320s and 20 A321-200s, while GECAS ordered 60 A320 family aircraft (see next item) and Aeroflot ordered 11 A330-300s. These will feature a “spacious” two-class cabin layout seating around 300 passengers. The carrier chose Trent700s to power the jets. Rolls-Royce valued the order for 24 engines at $650 million at list prices inclusive of a TotalCare long-term service agreement.

“This is a good way to start the show,” Airbus President and CEO Tom Enders said, referring to ALC’s order. Udvar-Hazy's decision to place the first order for his new leasing venture with Airbus “clearly demonstrates his continued confidence in Airbus aircraft and in the A320 family,” Enders stated.

Deliveries of the A320s start next January using two production slots from Air New Zealand, and run through 2015. They will be offered to customers with either the CFM56-5B or IAE V2500. Most will have the sharklet option that is available from the end of 2012 on A320s to be followed by the A319 and A321 models from 2013.

“With a wide airline customer base, and the continued global demand for replacement and growth, the A320 and the A321 are an integral part of our fleet portfolio strategy,” Udvar-Hazy said, noting that there is a “misconception” about the A320/A321 and the need to move toward a new generation of narrowbodies. “Today’s A320s have significant improvements from the older versions...they meet and exceed airlines’ high standards for low operating costs, fuel efficiency, environmental friendliness and maximum operating flexibility.” While touting the present A320 family performance, he confirmed that a switch to the NEO is built into the contract.

ALC was created a few months ago and its first new aircraft deal was on May 19, a sale/leaseback for Air Berlin. “For now, we will focus on building a portfolio of narrowbodies, but widebodies will follow,” Udvar-Hazy told reporters. The new venture will not have an exclusive Airbus portfolio, ALC President & COO John Plueger confirmed. “We will always look at any of the proposals that come to us.”—By Cathy Buyck

GECAS back in a buying mood with order for 100 A320s, 737s

GECAS ordered 60 A320s and 40 737-800NGs yesterday, signaling an end to the orders drought.

Boeing valued its order at approximately $3 billion "at average list prices" while CFM valued the engine order to power the 737s at $560 million and said deliveries begin in 2013.

Airbus did not provide a value or delivery date for its portion of the order but CFM valued GECAS's selection of the CFM56-5B to power the A320s at $840 million with deliveries starting in 2012. Customers for the GECAS A320s taking delivery after 2012 will have the option of choosing sharklet-equipped versions.

Earlier in the day, Boeing Executive VP and Commercial Airplanes President and CEO Jim Albaugh told media that the company is looking actively at a further rate increase for the 737. “We have teams talking to the supply chain about another increase,” he said. Boeing recently increased the rate from 31.5 to 35 a month, with insiders suggesting a final rate of 37 is on the radar.

Airbus President and CEO Tom Enders told media that the GECAS order is “a further demonstration of the strong demand for the A320 family and underlines its attractiveness to leasing companies, who are returning to the market with full steam.”—By Geoffrey Thomas

Albaugh: Southwest will like our 'engineer-driven' solution

Boeing’s 737 replacement/re-engine solution will be something that Southwest Airlines Chairman, President and CEO Gary Kelly “will like,” according to Boeing Executive VP and Commercial Airplanes President and CEO Jim Albaugh.

Responding to ATW's report that Southwest, the largest airline operator of the 737, is calling for a replacement rather than a re-engine solution (ATW Daily News, June 25), Albaugh said Boeing briefed Kelly last week with “all options” and no decision has been made by the carrier. Last month at ATWs Eco-Aviation Conference in Washington, SWA Executive VP and COO Mike Van de Ven said the “time has come to develop a replacement to the workhorse narrowbodies" to enable airlines to meet environmental responsibilities and economic challenges.

While Albaugh would not commit further on the status of the 737 program, he said the decision on what option to pursue—an all-new program or a re-engine--would come as early as this fall, some months earlier than previously had been forecast. On the third option of doing nothing, he said, “I think we can rule that out.” On the engine selection for the 737 options, he told media that no decision has been made, Boeing is talking with all three engine-makers about solutions and the company may go with two engine options.

The next aircraft program will be far more disciplined, Albaugh said. “I am an engineer and I want Boeing to be engineer-driven. We will be very disciplined going forward and our project management will be industry best practice.” He noted that the manufacturer would be more likely to bring some work back in-house after the 787 experience.

Emirates chooses GP7200s to power new A380s

Emirates Airline and Group Chairman and Chief Executive Ahmed Bin Saeed Al-Maktoum signed an agreement here yesterday for additional Engine Alliance GP7200s to power the 32 A380s ordered at the ILA Berlin Air Show. Total value of the deal, which includes a Fleet Management Agreement and spare engines, is approximately $4.8 billion over the life of the contract, Engine Alliance said.

Bombardier has no plans to stretch the CSeries beyond 150 seats, Bombardier Aerospace President Gary Scott stated here yesterday. "The airplane is optimized for the 100/150-seat segment," he said in response to a reporter's question. "For us to move the platform up would make it less than an optimal solution." He added that a market exists for "well over 6,000 aircraft" in the 100/150-seat market worth "$500 billion" and he would be satisfied if the CSeries captured a 50% share of that market. He also claimed that Bombardier has achieved a 50% share of net orders in the market segment since program launch with 90 firm and 90 options from three customers.

The program has left the Joint Definition Phase and is now "fully engaged" in the Detailed Design Phase, according to CSeries VP Rob Denver. The aluminum-lithium test barrel has successfully completed 60,000 fatigue cycles and the company completed an ultimate load test on the composite wing 4-6 weeks ago and is "very pleased with the results," according to VP-Engineering and Business Development Colin Elliot. First flight of the smaller CS100 is set for 2012 with delivery in late 2013 and the CS400 following in 2014. To date, only Lufthansa has selected the CS100 for its Swiss International Air Lines subsidiary. But it does not want to take delivery until 2014, which means Bombardier is looking for a customer to take first delivery, Scott said.

Norwegian Air Shuttle exercised purchase rights for 15 737-800s valued at $1.15 billion from its 2007 order for 42 737NGs. Boeing said the commitment boosts Norwegian's unfilled 737 orders to 59. Aircraft will be delivered between 2014 and 2016.

Sukhoi Civil Aircraft Co. and Kartika Airlines finalized an order for 30 SSJ100/95B aircraft. The deal is valued at $951 million at current list prices. Deliveries are planned for 2012-15. Both parties announced an initial agreement in Jakarta in December 2008 for 15 aircraft and 15 options. “Sukhoi Superjet 100 is a perfect tool to bridge the market gap on regional capacity as major Indonesian carriers are focused on large single-aisle aircraft. With this new right-sized aircraft we can develop and serve more point-to-point destinations with obvious operational efficiency and unsurpassed comfort for passengers,” Kartika CEO Kim Johanes Mulia Jiauw commented.

Qatar Airways Group, which yesterday announced a firm order with Bombardier for two Global 5000 aircraft and a Challenger 605 for its subsidiary Qatar Executive, is still talking to the Canadian manufacturer about buying its CSeries but was not able to conclude a deal at the air show, CEO Akbar Al Baker said. “I was expecting the question,” he laughed. “Yes, we are still interested in the aircraft. We would be happy to sign a deal during the show but there are some issues that need to be resolved. Talks are continuing.” While refraining from detailing the precise content of the issues, he did reveal they are related to engine-maker Pratt & Whitney. “The engine manufacturer is the stumbling block,” he said.

The Doha-based carrier’s purchase of the additional business jets will bring Qatar Executive’s fleet to six. Deliveries are scheduled for October 2010 and August 2011. “While low-cost carriers in the region are pushing budget travel, we are doing the opposite and targeting high-end travelers. Qatar Executive has been operating extremely successfully since we officially launched Qatar Executive at the Paris Air Show last summer,” Al Baker said.

TRIP Linhas Aereas firmed options for two E-190s valued at $80 million, Embraer announced here. Aircraft are part of a 2008 order from TRIP for five plus 10 options (two of which were confirmed yesterday) and 15 purchase rights. Aircraft will be configured with 106 seats.

Separately, Embraer announced that David Neeleman's Brazilian airline Azul Linhas Aereas Brasileiras is the undisclosed customer for five E-195s valued at $211 million listed in the company's firm order backlog for the second quarter. GE valued the CF34 order at more than $40 million.

TAM Linhas Aereas selected Pratt & Whitney PW4000-100 Advantage70 engines to power two new A330-200s in a deal valued at more than $100 million. The contract includes installed and spare engines and a 12-year service agreement provided by Pratt & Whitney Global Service Partners.

Vietnam Airlines signed a 10-year fleet management program agreement with Pratt & Whitney Global Service Partners covering the airline's fleet of PW4090 engines.

Air India signed an agreement with Pratt & Whitney to establish an EcoPower engine wash service at Mumbai International. Under the agreement, AI will be able to perform EcoPower engine washes on its own aircraft and offer the services to other carriers in the region. Pratt signed a two-year extension with JetBlue Airways for its EcoPower engine washes on the airline's fleet of V2500 and CF34 engines powering its A320s and E-Jets. 

Farnborough news from July 19