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Original Equipment Manufacturers: June 2008 Archives

Bombardier's new CSeries specs FOUND HERE

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Bombardier has updated the specs on its GTF-powered CSeries 110, 110ER, 130 and 130ER. The figures differ from what is being currently advertised on the manufacturer's site, particularly with respect to range at max payload. Check out the increase in range for the 110. Also check out the new 130XT. Here is the original document, folllowed by a snapshot of some key metrics.

CSeries_May 08.pdf

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Many gals harbor big aspirations for walking the catwalks of Paris and Milan. But they often don't achieve such lofty heights, and instead find themselves splayed across vehicles at the local convention centre car show. I'd like to say for the record that these ladies' talents should not be underestimated.

I recently received a copy of Finnish aeronautical publication Ilmailu in the mail, and there on page 28 is a photo of yours truly looking far too demure beside Embraer's ethanol-powered Ipanema aircraft. I'm rather certain that the  photo would have been more effective if I had mounted the aircraft, legs akimbo, in a bikini. But then again, Embraer may never invite me back to Sao Paulo.

Nonetheless, I'm grateful for Ilmailu's inclusion of this pic in its magazine. Now could somebody tell me what the article says?

Ipanema.jpg

GTF fans gear up for Farnborough

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As the Farnborough air show rapidly approaches, excitement is building about order prospects for the Pratt & Whitney Geared Turbofan-powered Mitsubishi Regional Jet (MRJ) and Bombardier's proposed CSeries.  Mitsubishi has alreaThumbnail image for Fan 2.JPGdy secured All Nippon Airways as launch customer, and is reportedly closing in on a second deal. Bombardier is rumoured to launch the CSeries at Farnborough (which runs 14-20 July) with as many as 200 orders, including 50 from China Southern.

 

A big draw for both aircraft is the high-bypass GTF, which is attracting increasing interest, including from former sceptics of the project. "I think what you're seeing is an industry that is starting to understand the facts and the figures, and maybe being able to separate [these] from myth," says Benjamin Boehm, director, programme management office and director of marketing, new commercial aircraft programmes at Bombardier Aerospace.

 

P&W recently held technical symposiums in Asia and the USA to show would-be customers what the GTF can deliver as the exclusive powerplant for both the MRJ and CSeries. "Customers are coming to us at these events we're hosting. There is absolutely a great push and emphasis on better fuel economy and better emission performance [to be made available] in a timely fashion," says Mary Ellen Jones, VP of marketing for P&W Commercial Engines.

 

But if you're looking for P&W to let the cat out of the bag on orders, think again. Jones sees Farnborough's July timing as somewhat of "an arbitrary date", but she has no doubt we'll see some order action this year.

 

The first flight of the GTF on a Boeing 747SP test-bed will occur "around the time of Farnborough", says Jones. "The biggest expectation is to have a flight test programme as successful as our ground test programme."

 

Clearly the GTF proposal - which promises to reduce fuel burn by at least 12% compared to current high-bypass ratio turbines - is "going in the right direction", says consultant Bob Mann, who suggests that if Bombardier and Mitsubishi can deliver on their promises "those look like some of the leading programmes in [improving] economics".

 

So what does Bombardier have to say as Farnborough nears? "I think the best thing for me to say of the show is that our calendar of airline face-to-face executive meetings is filling up fast and our calendar for supplier that want to get on the programme is filling up fast," says Boehm.

 

"That pretty much says I'm going to very busy during that week."

Tugging more than the Boeing 737

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Tugging an aircraft from A to B might not sound like such a big deal. But if you're an airline trying to cut your fuel bill, you might see the benefit of WheelTug's electric nose drive for aircraft ground manoeuvring.

 

WheelTug.JPGThe last time we checked in with our friends at WheelTug, they were brokering risk-sharing partnerships, and working to secure supplemental type certification on the system for Boeing 737NG aircraft.

 

The company now reveals it is in serious discussions with potential customers about adapting the system for other types -  including the military!

 

"A formal response has already been submitted for one military aircraft, with more to follow," reveals the firm in a recent newsletter. "Military airplanes do not have the same commercial certification hurdles, so in many cases the effort can be accomplished in parallel."

 

Meanwhile, a motor designed specifically for the wheel envelope and geometry of the 737NG is underway at parent Chorus Motors, with aircraft testing by WheelTug scheduled for this summer, says the company.

 

The overall program schedule includes completion of all hardware for certification testing by early 2009, with the remainder of the year dedicated to certification. Corporate objectives include installation for revenue-generating flights by the end of 2009 or very early 2010.

 

WheelTug currently works with partner and US launch customer Delta Air Lines. Over the coming months, WheelTug expects to select the next target commercial aircraft type.

 

"There is increasing interest in the Airbus A320, since a WheelTug-equipped 737NG will have substantial operating and cost competitive advantages over an A320 without a WheelTug," says the firm.

 

"Regional Jets as well as the Boeing 757 are potential candidates but in the end, the decision will be based on the level of interest and commitment from customer airlines and regional carriers."

 

In the face of soaring fuel costs, WheelTug says it can save an airline tens of thousands of dollars per month for every aircraft.

If you ask me, something seems to be missing from Bombardier Aerospace's showcase at the AIREX 2008 exhibition being held in Istanbul, Turkey. The Canadian airframer has five aircraft on static display - its Learjet 60 XR, Challenger 300 jet, Challenger 605 jet, Global Express XRS aircraft and a CRJ900 NextGen aircraft. But there is nary a CSeries cabin mockup in sight. Why? I should think that AIREX would make a good platform to flog the CSeries to Middle Eastern operators, a region being targeted by Bombardier for the proposed 110/130-seat aircraft.

 

Thumbnail image for CSeries interior.JPGDuring a recent interview, Bombardier Aerospace's director, programme managment office and director of marketing, Benjamin Boehm said the CSeries is being evaluated by Middle Eastern airlines for a possible role in providing feeder services. "We're finding that areas such as the Middle East - they are starting the whole hub-and-spoke phenomenon there," he said.

 

And in a statement today, Bombardier touts its growing presence in the region "as major airlines adapt their operations with more cost-efficient regional aircraft to feed their larger mainline aircraft networks".

 

Qatar Airways is rumoured to be one of several carriers that will launch the CSeries at the Farnborough air show.

 

Okay, so where is the much-travelled mock-up? A Bombardier spokesman tells me it was "too heavy and expensive" to lug to AIREX. "Next step: Farnborough, and no this does not confirm anything," he says. Well thank you kindly.

Slip sliding away? ERJ-135s in the USA

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What is to become of me? The question, memorably posed by Eliza Doolittle in the musical My Fair Lady, must surely be on the minds of Embraer executives these days when considering the ERJ-135. The 37-seater is playing a fast-diminishing role in the USA. Thumbnail image for ERJ-135 resized.jpg

 

Continental Airlines has just brokered a new feeder deal with ExpressJet that will see the regional's 30 ERJ-135s culled (Wells Fargo Bank appears to own the lot of them). AMR is slashing regional capacity at its American Eagle subsidiary; the unit's 38 ERJ-135s are widely expected to be the first to go.

 

Additionally, an amended agreement between Republic Airways Holdings and Delta Air Lines will see the company remove from service all 15 of its Chautauqua-flown ERJ-135s at a rate of two aircraft per month beginning in September 2008.

 

"We expect to sell these aircraft to Embraer or another party as the aircraft are removed from service," says Republic.

 

This "does not leave many E-135s flying, but I am not surprised, with today's fuel price, the aircraft is not economically viable", says Saab Aircraft Leasing president and CEO Michael Magnusson.

 

But could someone launch a corporate conversion programme and would this be supported by Embraer, which manufacturers its own corporate version of the ERJ-135, the Legacy 600?

 

Magnusson says: "Personally I think they are 'toast' unless they can be turned into corporate aircraft. They are too expensive for the cargo market."

Ramp it up and stretch it out - Q400 chat

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Bombardier is studying whether it can ramp up production of its Q400 turboprop. At present, the barrier to increasing production has nothing to do with demand and nearly everything do with supply.

 

Q400.jpgThat's because Bombardier is in the midst of a rather significant undertaking - transferring Q400 fuselage work from Japan to China and Belfast, explained the airframer's new president and CEO Pierre Beaudoin during an earnings conference call yesterday. "It has been a huge ramp up in a business most suppliers had given up on four years ago," he says.

 

Bombardier is offering a NextGen version of its Q400, which features a suite of upgrades and improvements, mainly to the cabin. No engine modifications are planned but the operating manual will be altered to improve fuel burn in certain conditions.

 

But what about making the 70-seat Q400 bigger? After all, isn't the regional airline industry grappling with the hard reality that bigger is better?

 

For some time now, Bombardier has been studying a stretched version of the Q400, dubbed the Q400X. While the firm has not yet green-lighted the programme, it seems pretty confident that there is a market for a larger model. Considering the fact that the Q400 has been doing so well, says Beaudoin, there is "great potential for that [Q400X] aircraft in the long-term". Q400 customers are "talking about it", he adds.

 

Separately, Beaudoin also took some time to address a recent Research Capital report that claims China Southern Airlines will become a launch customer for the proposed CSeries airliner. Check out what he said here.

 

Bombardier's annual meeting of shareholders is currently underway. The company has just fielded shareholder proposals, including one that calls for better parity of men and women on the board of directors.

"Open your wings and name more women on the board," urges a Bombardier shareholder, who notes that the women of today are going "beyond what men are doing right now" and should be better represented on the board.  

Bombardier's management team might also benefit from a shot of estrogen. But I digress. Kudos to this ballsy shareholder, who also suggests Bombardier has the ability to set a standard by naming more female directors and shaming its competition (ahem, note to boy-heavy Embraer).

And since we're talking girl power, I'd like to highlight one female pilot's answer to the pilot shortage. Captain Karen Kahn, one of the nation's first female commercial pilots has written and published Flight Guide for Success: Tips & Tactics for the Aspiring Airline Pilot to help guide individuals entering the aviation field or considering flying planes as a career. The book is in its third reprint.

Kahn.jpg"Pursuing a career as a pilot, particularly a commercial pilot, is a painfully complex business," says Kahn. "Having gone through the process myself, I knew I could assist others more easily navigate the process by writing this book."

 

Additionally, Kahn addresses what she considers to be the myths associated with starting a pilot career later in life. "The average age for hiring an airline pilot is 35," says Kahn. "With age discrimination looming as a legal deterrent, airlines no longer list upper age limits for new hires, preferring to consider pilot qualifications on their own merits. Further, older pilots bring a maturity level to the job that instills confidence in passengers as well."

 

Kahn answers a number of questions in her book, including: how old is too old to become a professional pilot; are the days of cockpit discrimination over; and how should pilots handle blemishes on their backgrounds?

 

(Photo from http://www.aviationcareercounseling.com)

 

 

 

Embraer nuggets make for a happy meal

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I'm sifting through Embraer's rather rosy annual "20-F" report to the US Securities and Exchange Commission (SEC), and there appears to be some interesting titbits in the filing. For those of you who are overworked, stressed out, or don't have enough time to think - let alone read this 120-plus page beast - and for the just plain lazy, I've broken out the following key air transport-related points:

 

1)      Embraer this year expects its research and development (R&D) costs to total approximately $243 million, including estimated costs of $123 million related to development of its new Phenom executive jets, $48 million related to improvements in its commercial aviation segment products, and $72 million related to development of technology. This excludes contributions from risk-sharing partners.

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2)     By comparison, total R&D expenses for 2005, 2006 and 2007 were $93.2 million, $112.7 million and $259.7 million, respectively, net of cash contributions provided by risk-sharing partners. Research and development costs as a percentage of net sales were 2.5% in 2005, 3% in 2006 and 5% in 2007.

3)      Embraer remains fully committed to continuing to market its ERJ-145 regional jet family. As of 31 March, the company had more than 850 units in commercial operation. The manufacturer says it is currently evidencing increased demand for the family in the secondary market.

 

4)      Embrear continues to develop the E-170/190. It also continues to "analyze new aircraft demand in the jet market to determine potentially successful modifications to aircraft we already produce".

 

5)      As of 31 March, Embraer's largest customers were JetBlue Airways, US Airways, HNA Group and the new Brazilian airline recently founded by David Neeleman, called Azul. These accounted for 42.3% of Embraer's firm orders in backlog for E-170/190s. Embraer believes it will continue to depend on a number of key customers and warns that the loss of these could reduce sales and reduce market share.

 

6)      Embraer's ECC Leasing subsidiary, which manages and remarkets the aircraft portfolio that may be acquired by Embraer as trade-in or re-purchase transactions, is contributing positively to the company's financial results. Since its 2002 inception, the unit has reached an accumulated net income of $26.4 million up to 31 December 2007. Also during this period, ECC Leasing and two other Embraer subsidiaries managed a total portfolio of 57 aircraft, of which 29 aircraft were under operating lease and 28 aircraft were sold to airlines, corporations and government entities in North America, South America, Asia and Europe.

 

7)      Embraer currently expects investments in property, plant and equipment to total approximately $330 million in 2008 and an additional $270 million in 2009, primarily related to the production of the E-170/190 family, as well as its executive jets and defence aircraft.

 

(Photo from Embraer) 

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