Paris Air Show News

AirAsia X places surprise order for 10 A350-900s plus five options

P&W: Geared turbofan could provide 23% fuel burn gain on A320/737 successor by 2017

McNerney: 787 work scope was 'too much for our partners'; composite 777 considered

Airbus focuses on executing deliveries, gets financing assistance from governments

Etihad selects GEnx for 35 787-9s, GE90 for 10 777s in deal valued at $2.2 billion

ATR reveals Air Nostrum order for 10 ATR 72-600s

Additional stories

Paris News from June 15, June 16.

AirAsia X CEO Tony Fernandes and Airbus CEO Tom Enders discuss the airline's A350 order

AirAsia X places surprise order for 10 A350-900s plus five options

AirAsia X lifted a mostly rainy and somewhat downbeat Paris Air Show by placing a firm order for 10 A350-900s valued at more than $2 billion plus five options. Airbus CEO Tom Enders said the order is "proof that there are some rays of sunshine in the market, certainly in the low-cost market." Deliveries are slated to begin in the first quarter of 2016.

AirAsia X said it will use the aircraft for low-fare long-haul flights with a particular focus on routes connecting Kuala Lumpur to Europe, South America and Australia. CEO Tony Fernandes said, "There is business out there if you go out and find it. . .I know it's bleak out there but there is light." He contended that the A350 will "make low-cost travel available to anyone."

He noted that negotiations with Airbus had gone on late into the preceding night and said, "the deal was finally done on the train this morning" as he made his way to Paris. AirAsia X will configure the aircraft to seat more than 400 passengers in a two-class layout.

Also yesterday, Vietnam Airlines placed a firm order with Airbus for 16 more A321s and signed an MOU for two additional A350-900s. The latest A321 contract increases the total orders placed by the carrier for the type to 41, of which 14 have been delivered. The commitment for the A350s comes in addition to an existing firm order for 10 placed in December 2007.

Cebu Pacific signed an agreement for five A320s, upping its total orders for the type to 15. The newly ordered aircraft are scheduled for delivery from 2013. The initial batch of 10 A320s is scheduled for delivery between 2010 and 2013.
by Cathy Buyck and Geoffrey Thomas

P&W: GTF could provide 23% fuel burn gain on A320/737 successor by 2017

Pratt & Whitney President David Hess said in Paris yesterday that a variation of the PW1000G geared turbofan could provide a 22%-23% fuel efficiency gain on an A320/737 successor introduced as early as 2017, the largest and soonest fuel burn improvement touted by any engine manufacturer for a next-generation narrowbody.

CFM International has said its proposed LEAP-X could provide 16% lower fuel consumption than the CFM56-7 powering the 737NG and that a baseline LEAP-X can be ready for certification by 2016 for a possible EIS in 2018. It additionally is exploring the open rotor but has said it has not figured out yet how to mitigate its considerable noise and the concept is not likely to have an application until the mid-2020s. It believes an open rotor engine could provide a 26% fuel efficiency gain.

Rolls-Royce also is touting the open rotor's potential, calling the concept a "true game-changer" that could provide a 25%-30% fuel efficiency gain over turbofans powering narrowbodies today, but it has not outlined a timeline for bringing an open rotor engine to market.

Boeing and Airbus executives have said that airlines are looking for a 20% or greater fuel burn improvement on a next-generation narrowbody, indicating that engine manufacturers would have to prove that threshold has been crossed before a new aircraft program is launched. Airbus COO-Customers John Leahy said yesterday that an A320 successor should not be expected before 2020 at the earliest. "We need a quantum leap in technology and it's not available," he said.

The PW1000G is slated to power Bombardier's CSeries and Mitsubishi Aircraft Corp.'s MRJ, both entering service in 2013. Speaking to reporters in Paris, Hess said the geared turbofan could apply to a variety of other aircraft, including current narrowbody and widebody models. Installation "on existing aircraft is certainly possible," he said, adding that the GTF "readily adapts to traditional airplane designs. . .It's real. Unlike some other [concepts being explored by other engine-makers], this is not a paper engine. We know we can continue to improve it."

He said the 15% fuel burn gain can be improved by around 1% annually going forward. "We can get to 15% now with what we know how to do today," he said; "22%-23% is feasible by the middle of the next decade."

While Hess stated that developing the PW1000G for a narrowbody successor is a potential "opportunity" for P&W "in the next decade," such a move would put the company in a tricky spot regarding International Aero Engines. The consortium led by P&W and Rolls builds the V2500 for the A320 family. While Rolls has suggested that a 737/A320 successor should be powered by an open rotor, P&W has rejected the concept, expressing skepticism that the open rotor's noise problem ever can be resolved.

"Clearly our preference would be to go to market with the next-generation narrowbody engine with Rolls-Royce and other IAE partners," Hess said. "Obviously, some things would have to be worked out with them and one of them would be engine architecture. When the time comes, I'm hopeful that we'll come together."
by Aaron Karp

McNerney: 787 work scope was 'too much for our partners'; composite 777 considered

Boeing Chairman, President and CEO Jim McNerney offered a frank assessment of the manufacturer's delayed 787 program: "We did not execute this well." Speaking to several journalists including ATWOnline at a roundtable at the Paris Air Show yesterday, he nevertheless was bullish on the Dreamliner, saying, "It's a game-changing airplane and a step-function change like the 707 was."

He added that the production model for the 787 was sound, "but the execution overwhelmed our company and our partners. There are three key elements in building an aircraft: Design, materials and manufacture. Changing everything at once--materials you make the airplane with, design tools you use, the partners and the scope you give them--was a challenge. Each part was sound. . .strategy but I think in retrospect we would have gone more slowly on the industrial side. The design is right and materials are a breakthrough but the scope of work was too much for our partners."

VP-Commercial Airplane Programs Pat Shanahan told reporters in Paris yesterday that the first flight of the 787 is "imminent. . .We now are preparing to conduct final testing to verify that the airplane is ready to enter the flight test program. From there, we will go through taxi testing and then the airplane will take to the sky. That will be an emotionally intense day for everyone who had a part in reaching this key milestone." Insiders suggest the first flight will be on June 24 at about 10 a.m. local time in Seattle.

Beyond the 787, McNerney said Boeing is looking hard at an all-composite 777 replacement. Commenting on a potential a re-winged 777, he said the company is examining various options to compete with the A350-1000. "We are waiting to see how much of the A350-1000 promise is reality," he explained. "We have about a year or so."

He said that if the A350-1000 is competitive, Boeing possibly will look to counter with a re-winged 777. "But we may not have to do that much," he said. "Eventually we will have an all-composite 777 and the bigger the diameter the better the strength-to-weight ratio." He added that a composite 777 would be 20%-25% lighter than the 777-300ER. "It will be a very, very efficient airplane and it will fly a long, long way."
by Geoffrey Thomas

Airbus focuses on executing deliveries, gets financing assistance from governments

Airbus executives said the company's focus for 2009 is on supporting customers and transitioning its order backlog into deliveries rather than chasing new orders.

"This is not the time to expect huge orders, but there are still orders coming in because of varying demand from region to region and airline to airline," CEO Tom Enders said yesterday during the manufacturer's Paris Air Show press briefing. He noted that "specialists" have indicated the economic downturn may have reached its bottom. "There is no certainty but it does feel to us that there are reasons to hope that the recovery will begin next year," he said. He expressed confidence that the air transport sector will remain a long-term growth industry with strong underlying demand, projecting around 5% annual average passenger traffic growth over the next 20 years.

"What counts for. . .our financial health is not orders but turning our backlog into delivery," Enders said, pointing out that the manufacturer has a healthy backlog of some 3,500 aircraft. To help secure deliveries, he conceded that government export credit agencies in France, Germany, Spain and the UK have stepped up their efforts and are participating in about 40% of Airbus deliveries this year compared with about 20% last year.

COO-Customers John Leahy confirmed to this website that all scheduled deliveries for this year have secured financing. He said he hoped credit agencies would increase their participation to 50% of aircraft deliveries in 2010. Airbus is maintaining its adjusted target to deliver 14 A380s this year. It expects to deliver around 480 total aircraft in 2009, down only slightly on 2008's 483.
by Cathy Buyck

Etihad selects GEnx for 35 787-9s, GE90 for 10 777s in deal valued at $2.2 billion

Etihad Airways selected the GEnx to power 35 787-9s and the GE90-115B to power 10 777-300ERs. Total value of both engine orders is $2.2 billion. The carrier additionally signed a multiyear OnPoint solution agreement with GE Aviation valued at more than $1.7 billion for maintenance, repair and overhaul of its entire firm GEnx and GE90 engine fleet. Deliveries of 777-300ERs are slated to begin next year while it will take its first 787s in 2015.

Separately, GE Aviation said TAM signed an MOU for a 12-year, $345 million OnPoint solution agreement covering MRO of its GE90-115Bs powering 10 777-300ERs. GE said Air Italy signed a five-year OnPoint solution agreement for MRO of four CFM56-3Bs and six CF6-80C2s powering its 737 Classic and 767 fleets respectively.

Philippines-based Cebu Pacific signed a 12-year OnPoint solution agreement with GE Aviation's Services business for MRO on the CFM56-5Bs powering its recently ordered fleet of 10 A320s. GE valued the deal at more than $100 million over the life of the contract. Also, LAN Cargo signed an MOU for a 12-year, $135 million OnPoint solution agreement for maintenance of GE90-110Bs that power its four 777Fs on order.
ATR reveals Air Nostrum order for 10 ATR 72-600s

ATR and Air Nostrum disclosed an agreement for the purchase of 10 ATR 72-600s plus 10 options, a deal potentially worth about $425 million if the options are exercised.

The firm order was on the manufacturer's list of unidentified customers and is part of the 28 orders it has logged so far this year. The aircraft will have the new cabin interior features of ATR 600s and be configured with 70 seats. But Air Nostrum Director-Industry Affairs Alberto Garcia Torres told this website the carrier did not opt for the new 35-in.-pitch business-class seats or the forward passenger door, two of the new options offered on the 600 series. Deliveries will start in 2011.

ATR also yesterday had two signing ceremonies at the show for earlier announced contracts, with Royal Air Maroc inking a deal of four ATR 72-600s and two ATR 42-600s plus options for two ATR 72-600s and Afrijet Airlines signing on for four ATR 72-500s.
Cathy Buyck

Sukhoi Civil Aircraft Co. signed a contract with Moscow-based Avialeasing for 24 Superjet 100s, firming a "heads of agreement" announced last year at the Farnborough Airshow. The deal is valued at $715 million. The aircraft will be delivered 2011-13. The agreement lifts the firm order portfolio for the SSJ to 122. Separately, Superjet International announced the signing of an LOI with Gadair European Airlines for two SSJ 100s plus two options.

Messier Services was selected by Southwest Airlines to be one of the two suppliers providing landing gear support to the airline's fleet of 328 737NGs. Initial contract is for three years with options to renew

Chromalloy announced that the CF6-80C2 HPT blades produced by its joint venture company Belac LLC reached 10,000 flight hr. of continuous use by a major global air carrier. It did not identify the carrier using the PMA parts.

Goodrich was selected by Airbus to provide "advanced cabin attendant seats" for the A350XWB. Goodrich said the selection is expected to generate $100 million in OEM and aftermarket revenue over the life of the program.

Separately, Goodrich signed a long-term service agreement with British Airways covering RB211-524 engine control systems for BA's 747s and 767s. The agreement, consisting of repair, overhaul and rotable services, technical support, spare parts and consumable kits, covers more than 300 RR RB211-524s for a minimum of five years.

Goodrich signed a five-year, $58 million agreement with SAS to provide thrust reverser overhaul services on all V2500s that power the carrier's A320s. SAS has the option to extend the duration and scope of the agreement to cover additional V2500 nacelle components and also to incorporate nacelle systems for other aircraft types such as the A330, A340, 737NG and MD-90.