Farnborough International Airshow News

Sukhoi Superjet received commitments for up to 55 aircraft yesterday. Photo: Geoffrey Thomas

MC-21 wins up to 50 orders from Malaysia's Crecom

Russia's Irkut Corp. and parent company United Aircraft Corp. scored a major breakthrough at Farnborough yesterday as Malaysia's Crecom Burj Resources, a unit of Crecom Burj Group, finalized a launch order for up to 50 MC-21s. The deal, which was announced in front of the MC-21 cabin mockup unveiled Monday, includes 25 firm MC-21-200s seating 150 and options on 25 of the 181-seat MC-21-300s. According to Irkut, it is the largest international contract for the Russian commercial aircraft sector in 20 years.

The signing was attended by Malaysia's Minister of Defense Ahmad Zahid Hamidi and both sides noted that the sale builds on the successful decade-long cooperation between Irkut and Malaysiabeginning with the introduction into Malaysia's military of the Sukhoi Su-30MK, built at the Irkut factory.

Earlier in the week, ATW spoke with UAC Chairman and President Alexey Federov, who emphasized that the MC-21 program is viewed by the government as vitally important to Russia's aerospace sector. Of an estimated total program development cost of $7.8 billion, around half will come from the state budget, he said. He also said that the business plan calls for sales of 1,000-1,200 units through 2029, with two-thirds of the market being outside Russia.

The MC-21 will make its maiden flight in 2014, with Russian certification targeted for 2015 and international certification for 2016, followed by first deliveries to Crecom. It will feature a composite wing but an aluminum alloy fuselage.

"We didn't see any advantage for a composite fuselage," Federov told ATW. He said that lessons have been drawn from the delays experienced in the Sukhoi Superjet program that can be applied to the MC-21 program development. "If we make all the steps on time, we will be on time," he said bluntly.

The aircraft will achieve a 12%-15% improvement in fuel burn over existing narrowbody types "even after re-engining," Federov claimed, which will enable it to compete against the duopoly of Airbus and Boeing. While he declined to discuss pricing, he said that realistically, "We have to provide a less expensive aircraft than Airbus or Boeing by 5%-10%." But he also pointed out that Irkut is planning to produce 70 aircraft per year, or around six per month, "considerably lower than the Airbus and Boeing rates. In other words, we believe there is a niche and we will take this niche…The market is ready to accept a third player."

The MC-21, the largest of which, the -400, will seat 192 in a conventional two-class layout, will have a 3-3 main cabin seating configuration. A number of Western suppliers have signed on, including Pratt & Whitney, which is providing its PW1000G geared turbofan. The domestically manufactured PD-14 turbofan from Aviadvigatel will be offered as well. Rockwell Collins, Eaton, Goodrich, Hamilton Sundstrand and Zodiac Aerospace are also onboard the program, in some cases working with Russian partners.

While UAC is engaged heavily in what Federov described Wednesday as "the most important and ambitious project within the framework of UAC," the company also is looking well down the road toward a potential future civil program for a widebody aircraft. "We are behind other manufacturers and are not ready to compete head-to-head with the 787 or A380," he said to ATW, explaining, "We are spending time shaping our conceptions for the next-generation aircraft." This is a clean-sheet process that will be conducted over the next five years and may or may not lead to a new program, he noted.--By Perry Flint

Airbus rides recovery for another day

Airbus enjoyed another busy day at Farnborough as Garuda Indonesiaplaced its first direct order with the company since 1989 Wednesday, selecting six A330-200s valued at $1.15 billion. Aircraft are scheduled for delivery from the 2012 fourth quarter. Garuda already operates four leased A330-200s and six owned A330-300s. The new aircraft will be powered by Trent700s. Rolls-Royce claims to have won 75% of A330 engine selections in 2006-09 and has an overall 54% market share.

Garuda President and CEO Emirsya Satar said the aircraft will be deployed across Garuda's network. "The A330 is a proven aircraft and it gives us profits," he said, adding, "If [it] were not making money for us we wouldn't order it…By 2014 we plan to have 20 of these aircraft.

Separately, Thai Airways International signed an MOU for seven more A330-300s for delivery from the end of 2011. They will join an existing fleet of 20 A330-300s. Thai MD-Technical Department Montree Jumrieng said the deal would be finalized by the end of the summer and that the aircraft will be for growth and replacement of Thai's remaining A300-600s.

Kuwait-based Aviation Lease and Finance Co. announced that it converted orders for 12 A350-800s placed in 2007 into the higher-capacity A350-900 model. And S.A.T., the holding company of Berlin-based Germania, firmed up its MOU for five A319s announced at last month's ILA Berlin Air Show (ATW Daily News, June 11). Deliveries of the aircraft will start in 2011. The aircraft, to be powered by CFM56s, will be configured in a single-class cabin layout for 150 passengers.—By Geoffrey Thomas

Boeing adds to order book

Boeing's Farnborough orders continued to accumulate as it unveiled new commitments from China's Okay Airways, Qatar Airways and Air Austral.

Qatar Airways and Air Austral each ordered two 777-200LRs while Okay ordered 10 737-800s. Boeing valued the Qatarand Air Austral orders at $501 million at average list pricesand the Okay deal at $800 million. All were listed previously on Boeing's website as being from unidentified customers.

Okay currently operates four 737s, including three 737-800s and one 737-300 converted freighter. It is also leasing four 737-800s this year and plans to expand its fleet by leasing five 737-800s each year prior to the new aircraft.

The Qatarpurchase involved a firming of two of five options and lifts its unfilled 777 firm orders to 10. It currently operates 19 777s: 11 -300ERs, six -200LRs and two freighters.“The additional two 777-200LRs will help us open up new ultra-long-haul markets as we expand and identify new opportunities further” Qatar CEO Akbar Al Baker said, adding that he “hopes to firm the remaining options in the not-too-distant future.”--Cathy Buyck

Goodrich, Mubadala partner on landing gear MRO venture

Goodrich and Mubadala Aerospace signed a "heads of agreement" yesterday to establish a landing gear MRO joint venture company in the UAE. According to Goodrich, the JV, if finalized, will be the region's "first dedicated landing gear service provider once fully operational in 2012."

Under the terms of the HOA, the as-yet-unnamed company will provide MRO services and rotable support for landing gear on commercial aircraft with its primary focus on customers in the Middle Eastregion. Sanad Aero Solutions, Mubadala's recently launched spare engine and rotable leasing subsidiary "is expected to play a key role in supporting the joint venture company with rotable landing gear assets."

The company initially will support Boeing and Airbus commercial aircraft, including the A380 and 777 models, with plans to extend to other commercial and military markets. It will be based in Al Ain in Abu Dhabi, alongside other Mubadala Aerospace companies.

Boeing agrees to accelerate QatarAirways Dreamliner deliveries

One year after threatening to cancel his entire order with Boeing owing to the series of delays to the 787 program, Qatar Airways CEO Akbar Al Baker announced yesterday that Boeing agreed to an accelerated delivery scheme for the carrier’s Dreamliners.

QR, which has orders for 30 787s and options for 30 more, will receive its first in the fourth quarter of 2011and five by the end of the first quarter of 2012. Qataris currently negotiating to accelerate delivery for the remaining firm aircraft in order to replace its early A330s, which will be about nine years old when the 787s enter service with the carrier.

The outspoken CEO blasted Boeing at the 2009 Paris Air Show, arguing that the company was "not run by commercial people but by bean counters and lawyers."But all that is in the past. “We had issues which have been resolved under the new [Boeing] management," he told ATW here, stressing that “there is a big difference in management. It has changed for the better.” He said resolution of the delay issue was not accompanied by additional financial concessions to QR yet he indicated he soon could firm some 787 options. These aircraft would become part of the portfolio of new leasing arm Qatar Aviation Lease Co. Boeing Commercial Airplanes President and CEO Jim Albaugh said he looked “forward to a continued partnership as Qatarexpands its position on the international stage."

Al Baker also vowed that “Qatarand Boeing will take the interior and comfort levels even a step further than any airline has ever achieved.” Earlier this year, QR confirmed it selected Thales’ new TopSeries IFE system for its 787s.—By Cathy Buyck

Sukhoi Superjet 100 order book heightened yesterday with an order from Pearl Aircraft Corp. for up to 45 aircraft won by SuperJet International, the JV between Alenia Aeronautica and Sukhoi Holding. Separately, Sukhoi Civil Aircraft Co. signed an agreement of intent with Gazprom komplekt for 10 SSJ-100/95LR aircraft.

Pearl Aircraft Corp.,a new Bermuda-based aircraft leasing company, will take 30 SSJ100s plus 15 options. Firm aircraft are worth more than $900 million based on list prices. “After a detailed evaluation, we are convinced it is the best 100-seat aircraft available or proposed. Its superior economics outclass all its competitors,” Pearl CEO Jan Soderberg stated. “In addition, its low costs and superb payload-range performance will open new market opportunities for our customers, allowing them to serve routes previously not considered viable.” SuperJet International CEO Alessandro Franzoni described the deal as being “of particular value” to SuperJet noting that the agreement “with an international leasing company is a proof of the qualities of this aircraft and further enhances our position the market.”

Gazprom komplekt’s agreement is valued at $323 million at list prices and stipulates that deliveries are scheduled to begin in 2012.

Bombardier Aerospace announced that Qantas ordered seven Q400 NextGens valued at approximately $218 million at list prices. Aircraft will be delivered beginning in the first half of 2011 and operated by QantasLink. The order will increase to 28 the number of Q400 and Q400 NextGen turboprops operated by QantasLink.

Boeing officials at Farnborough confirmed a Reuters report yesterday that RBS Aviation Capital was the customer for 42 737NGs for an announced order placed in 2008 before the global financial crisis. RBS also confirmed an order for 52 A320s placed around the same time. In a statement, RBS said that the “95 aircraft will be delivered between now and 2015 and will be leased to RBS Aviation Capital's airline customers across the world, with all of the 2010 deliveries having already been placed. The orders have a combined value of over $7.6 billion at list prices," it added. RBS Aviation Capital is a division of the Royal Bank of Scotland, which is 83% owned by the British government after it collapsed in the 2008 financial crisis and received a massive state bailout, Reuters stated.

Viking Air of Victoria, BC, received Transport Canada Type Certification for the DHC-6 Series 400 Twin Otter, it was announced here, where the first production aircraft, MSN 845, is being handed over to launch customer Zimex Aviation of Switzerland. Viking, a unit of Westerkirk Capital, provides OEM support for the worldwide fleet of de Havilland heritage aircraft (DHC-1 through DHC-7). The Series 400 is powered by twin PT6A-34s and fitted with a Honeywell Primus Apex avionics suite.

GE Aviation said Spring Airlines extended its current OnPoint solution agreement with GE Aviation’s Services business for the maintenance and overhaul of the CFM56-5B engines that power its A320s to include the engines powering four additional A320 family aircraft announced Tuesday, as well as three additional leased aircraft. The agreement, which new covers a total of 37 aircraft, is valued at $300 million over the life of the contract.

Separately, GEsaid LAN Airlines agreed to be the launch customer for GE's myEngines digital services, a new suite of digital applications "to help customers better manage their engine fleets and improve productivity." The myEngines digital services will cover LAN's entire fleet of CF6-80C2, GE90-115B, CFM56-5B and -5C engines.

SR Technics signed an Integrated Component Solutions contract with UK-based Thomson Airways. Under the contract, which runs until 2015, SR Technics will provide exchange, maintenance, repair, logistics and component management services on a flight hr. basis for a total of 45 aircraft in the Thomson fleet comprising 29 757s and 16 767s.

Farnborough news from July 21

Farnborough news from July 20

Farnborough news from July 19