Farnborough International Airshow news

Airbus COO Customers John Leahy (front r.) and Virgin America President and CEO David Cush.(front l.)

Virgin America latest airline to join buying binge

Airbus yesterday announced what it described as "a nonbinding" MOU with Virgin America for 40 A320 family aircraft valued $3.3 billion at list prices, plus a further 20 options.

The latest deal brought the manufacturer’s sales activity at the Farnborough International Airshow to 255 aircraft worth $28 billion, including firm orders for 133 aircraft valued at more than $13 billion.

If VX’s MOU is converted into a firm order, deliveries of the firm aircraft will run from 2013 to 2016 with options beginning in 2017. “It is our full expectation that it will lead to a firm contract in the months ahead,” President and CEO David Cush stressed to ATW. The carrier currently operates 10 A319s and 18 A320s and will put 22 purchased and leased A320s into service by 2012.

The new agreement covers A320s with the ability to upgrade to A321s “if we see the need,” Cush said, adding, “We would anticipate the new aircraft will have the sharklets.” VX has not yet announced its choice of engines but its current aircraft are powered by CFM56s.

The torrential downpours that greeted showgoers Thursday did not affect Airbus's cheerful mood; quite the contrary. “This was a good air show for us, this was a good air show for the industry,” President and CEO Tom Enders told reporters during the “end of the show” briefing. “We signed more MOUs and contracts than we anticipated,” he said, pointing out that “the leasing companies are clearly back.”

Operating lessors accounted for the bulk of Airbus’s firm orders here, with Steven Udvar-Hazy’s new Air Lease Corp. buying 51 narrowbodies and GECAS 60 A320s. Airbus COO-Customers John Leahy said he’s currently in talks with another leasing company, for A330s. He’s also aiming to sign up another customer for the A380.

Enders revealed the company is setting a new sales target for the end of the year to “north of 400 aircraft” and indicated it might consider raising productions rates, primarily of the narrowbody family but maybe also of the widebodies. Airbus previously targeted 250-300 orders for 2010. As of July 22 it had registered firm orders for 261 aircraft from 20 customers. “The recession is definitely over,” Leahy concluded, citing the active sales, global traffic growth and the return of liquidity to the market as reasons underpinning his statement.—By Cathy Buyck

Rolls pursues three-strand approach to future technology

Keeping its options open may be the best way to describe Rolls-Royce's approach to the civil engine business these days.

In what it describes as "a market-led strategy for the future," Rolls is proceeding down three distinct development paths. "Two years ago we felt that we didn't have any view of what the long-term outlook was," VP-Strategic Marketing Robert Nuttall, explained here to ATW. "So what we decided to do was lay out a plan in which we maintained our ability to deliver technology to customers…We talked about pursuing a two-shaft program, a three-shaft program and an open rotor program" while staying focused on delivery of new engine programs such as the Trent 1000 for the 787, the Trent XWB for the A350 and the BR725 for the Gulfstream G650 business jet.

Today, Rolls still is pursing the multistrand approach to future technology with the three-shaft Advance3 suitable for a new large narrowbody/widebody in the 2017-18 timeframe, the two-shaft Advance2 intended for regional and corporate aircraft and potentially a new 150-seat aircraft in the 2016 timeframe, and an open rotor design that would be available for EIS early next decade for the next-generation narrowbody.

One thing it is not actively pursuing is a re-engine program for the 737 or A320. "We would never say never," Nuttall emphasized, but, "We've spent a lot of time analyzing, understanding the opportunities, and we've concluded this simple re-engining concept misses the target in terms of offering the industry any significant net financial benefit. At our level, because of the relatively short production life of a re-engined aircraft, we feel it misses the target for us [also]."

He observed, "Technically we have no issues with providing an engine…but when it comes to the business case we can't make the numbers add up. And I think more importantly, any re-engined aircraft will inevitably delay the entry into service of an all-new-technology aircraft" that Rolls believes the industry requires to meet its economic and environmental challenges.

This view separates the company from its partner in International Aero Engines, Pratt & Whitney, which is pitching its PW1000G geared turbofan to both Airbus and Boeing as a re-engine candidate. A deeper divide between the two is that "our architectural preferences have diverged," as Nuttall diplomatically puts it. "It's no secret that we don't see the benefit of the GTF."

At this point, both companies all but acknowledge that IAE will not be the vehicle through which they bring a V2500 successor to the market and that they will go their separate ways when the time comes. Notwithstanding this view, Nuttall is confident that Rolls will not be locked out of the narrowbody market going forward. "We believe there will be new aircraft and we will be incredibly well-positioned when that opportunity arises."—By Perry Flint

Embraer order book set to grow with Republic LOI

Embraer continued its strong sales performance at Farnborough with a letter of intent from Republic Airlines for 24 E-190s valued at $960 million.

“It is my distinct pleasure to announce a further expansion of our partnership with Embraer,”Republic Airways Holdings CEO Bryan Bedford stated. “This new agreement confirms our commitment to the E-Jet family. We chose them again because passenger comfort, mission performance, especially in hot-and-high markets like Denver, and compelling economics are hallmarks of the E-Jets product line."

Bedford said the company will start to take delivery of six E-190s in mid-2011 and also has the flexibility to convert the orders to the E-195, seating 116 in a single-class configuration. Republic is the largest E-Jet operator in the world, according to Embraer.

Mitsubishi president says company on track for 1,000 MRJ orders

Mitsubishi Aircraft Corp. expects to gain 1,000 orders, or 20% of the forecast market over 20 years, for its MRJ series regional jet program, according to President Hideo Egawa. Addressing media here, he said the MRJ90 is on time for first flight in 2012 and delivery to ANA in 2014. Mitsubishi had hoped to announce some orders at Farnborough but now expects agreements within the “foreseeable future”.

Executive VP Junichi Miyakawa said design freeze will be achieved by late summer and “no changes have been made.” Small parts are already in production and larger-scale components will start production in the fall.

Mitsubishi is contracting out most of the support for the aircraft, with Saab producing the technical manuals, CAE the pilot training and partners yet to be announced for the logistics and MRO functions.

The company is upbeat on the Pratt & Whitney PW1217G geared turbofan and has inspected all the recent core test data. “The critical core test has met all design criteria,” Miyakawa said.--By Geoffrey Thomas

Boeing confirmed it signed an agreement with Azerbaijan Airlines to substitute two 737NGs for one 767-300ER and two 767 freighters. “With our centralized geographic location, Azerbaijanis becoming a busy hub in the region between east and west and north and south. We are capitalizing on this development by expanding our long-haul passenger fleet and growing our cargo business with the proven efficiencies of the 767 freighter,” Azerbaijan Airlines President Jahangir Askerov commented. The Baku-based carrier now has eight Boeing aircraft on order: Two 737s, two 787-8s, two 767-300ERs and two 767Fs.

GE Aviation, along with its joint venture companies CFM International (see next item) and Engine Alliance, amassed engine and services orders valued at more than $16 billion at the show, the company said. Of the total, $11 billion came from new engine orders and $5 billion from long-term service agreements.

CFM International tallied new orders for more than 825CFM56 engines, as well as associated long-term service contracts, in the first three days of Farnborough with a total value of more than $7.3 billion.Total 2010 CFM56 orders now stand at 1,135.

Boeing is "now at the top of our game and we are in the best shape we have ever been in,” said VP and GM-Airplane Programs Patrick Shanahan in describing the company’s readiness to tackle the next airplane project. In a wide-ranging discussion, Shanahan said the manufacturer is on top of technology and integration and looking forward to delivering new technology on time and service ready.

On the 737 replacement question, he suggested that a modular concept floated in the late 1990s of both single-aisle and twin-aisle solutions with common wing, engines and cockpit would not work as it is structurally difficult. The concept was born out of a study done by McDonnell Douglas after the merger with Boeing but was based on an aluminum structure. On the replacement question, Shanahan said the company would not tip its hand on shell size but that its response would be “market-driven and what customers want.” It is working with around 10 737 customers to define what it should do going forward, he said.

Adding further color and perspective to the vexing question on when to move on the new airplane, he said it would not be practical to build in the ability to add new technology at a later date owing to the use of less-adaptable composite structures, which are essential to drive weight down and create the aerodynamic shapes necessary to achieve the performance required.

On production, Shanahan said the company is largely over its supply chain glitches. The moving-line production system, the symbol of Boeing's lean manufacturing, is “achieving between 25% and 50% improvement in production efficiency” depending on the aircraft program.

Discussing the 747-8I, he said the plan is to “better the fuel burn” of the A380. Last month, Lufthansa Senior VP-Corporate Fleet Nico Buchholz told attendees at ATW’s Eco-Aviation Conference in Washington that the 747-8I fuel burn would be 3.51 liters per passenger compared with the A380 at 3.4 liters. “These are numbers on our load factors, on our network and in our configurations," Buchholz said.

Guangzhou Aircraft Maintenance and Engineering Co. announced a contract with IAI's Bedek Aviation for passenger-to-freighter conversions of up to nine 737-400s using the IAI STC. Work will be done at GAMECO's facility in Guangzhouin 2010-11. In addition to the conversion touch work, GAMECO will provide painting, aircraft maintenance and other work as required. Redelivery of the first aircraft is scheduled for September.

GAMECO signed an MOU with Chongqing Airport Group and Chongqing Airlines to establish a joint-venture MRO facility at Chongqing Jiangbei International. The facility, Chongqing (GAMECO) Aircraft Maintenance Engineering Co., will have two bays and initially focus on A320 line maintenance and AOG support, base maintenance, component MRO and other services for Chongqingand other customers. GAMECO will be the majority owner in the venture.

GAMECO said it "designed, certified and completed" a branded Premium Economy Cabin refit on 238 aircraft and six aircraft types operated by China Southern Airlines.

Porter Airlines Q400 will be flown using camelina-derived biofuel, Bombardier announced here. A six-partner consortium led by Saskatchewan-based Targeted Growth Canada and including Bombardier, Pratt & Whitney Canada, UOP, Sustainable Oils and Porter expects to conduct the demonstration flight by early 2012. Funding for the project is being provided by the partners as well as by Sustainable Development Technology Canada, "an arms-length not-for-profit corporation" created by the Canadian government and Green Aviation Research & Development Network.

CTT Systems' Cair cabin humidification system is now flying on a Lufthansa A380, according to CTT VP-Sales and Marketing Ulf Liljenberg. Although the system is in service with operators of corporate and VIP aircraft, LH is the first airline customer for Cair. Integral to Cair is CTT's Zonal Drying System to remove excess moisture from the aircraft. LH is using the system to boost humidity levels in the first class cabin to around 25% from the 5%-10% typically occurring in airline cabins at altitude. Because it is only being used to raise humidity levels in the first class cabin, the system for LH requires just one humidifier unit and consumes seven liters of water per flight hr. The water evaporates during transfer and cannot carry any bacteria into the cabin, according to the company. Cair is being offered as an option on the A350 and A380 while the ZDS is standard equipment on the 787.

SR Technics and Qatar Airways signed a contract to modify the cabin layout of three A321s and two A319s. Work is being carried out in Zurich and will be completed by year end. Modifications include installation of a new seat layout, inflight entertainment units and a global system for mobile communication. The new QR single-aisle aircraft standard is being installed and all galleys and lavatories are being renewed.

AFI KLM E&M was selected by Air Canada for maintenance support of the airline’s GE90-110/115 engines powering its 18 777-200LR and-300ER aircraft.The exclusive 12-year contract covers on-site/on-wing operations, shop visits, engine components, spare engine support and engine engineering.

Messier-Dowty said it achieved "a historical milestone" in the development of the 787 landing gear with "the first successful takeoff and landing of a commercial flight test aircraft equipped with composite braces on the main landing gear." The flight took place on July 20 on ZA001. Aircelle, a member of Safran Group like Messier-Dowty, is responsible for manufacture of the braces.

Hartzell Aerospace was awarded a long-term contract by LMI Aerospace to design and supply the APU inlet and exhaust components for the Mitsubishi Regional Jet, expected to enter into service in 2014.

Boca Raton-based Partsbase announced it completed acquisition of PMA Parts Finder. Partsbase said the acquisition will improve its "current system to its 38,000 end users giving instant access to enhanced FAA PMA cross-reference data…Partsbase will now be able to deliver to the world the most comprehensive and integrated PMA data for its clients."

Farnborough news from July 22

Farnborough news from July 21

Farnborough news from July 20

Farnborough news from July 19