Ambitious and successful Europe based low cost carrier, Norwegian, has announced that it has placed the largest ever aircraft order by a European airline. The order is for 150 Airbus A320neos, and 222 Boeing 737s. This makes a departure for Norwegian from its Boeing-only strategy so far.

The order breakdown is as follows

• 100 firm orders for Boeing 737-8 Max
• 22 firm orders for Boeing 737-800 NG
• 100 purchase rights for Boeing 737 – unconfirmed
• 100 commitments (MoU) for Airbus A320neo
• 50 purchase rights (MoU) for Airbus A320neo – unconfirmed

The structure of the deal however shows Norwegian’s strong relationship with Boeing and also leaves open the possibility, at an extreme event, for the Airbus order to be cancelled. The Boeing order is valued at $11.4b.

Norwegian is the first European airline to make a firm commitment to the 737Max, which was launched after the A320neo, but has been able to add orders and commitments for over 1,000 units from 15 customers so far.

“This is a historic day for Norwegian – we have secured our fleet renewal for years to come and are very pleased with the agreement with Boeing,” said Norwegian’s CEO Bjorn Kjos. “Boeing has played a major part in our strategy to develop a cost efficient and environmentally friendly operation with high customer satisfaction. We are very happy to continue our valuable cooperation and we are proud to be the first 737 MAX customer in Europe.”

“The A320neo will enable us increasing capacity while decreasing our operating costs,” also said Bjørn. “With this aircraft we will continue to boost our reputation for offering high quality, low fares service with the most modern and eco-efficient fleet of aircraft in Scandinavia”.

Norwegian presently operates a fleet of 62 Boeing 737NGs, and employs about 2,500 people. The total order is expected to value at around NOK127 billion at list prices, while the actual price could be significantly lower.

Like with most LCCs however, Norwegian probably will never operate all 372 aircraft at the same time, but will rather use them in ‘generations’ to replace each other. Norwegian has also expressed its interest to launch a long haul low cost operation this year, and has already secured orders for the Boeing 787s to be used on its operation.

Originally posted on Airline Industry Review

This just in:

White House just announced that during President Obama’s visit to Indonesia, Lion Air has signed up for 230 firm orders for Boeing 737s with options on 150 more. 201 of the orders are for 737Max. Valued at USD21.7 billions at list prices, excluding options – this is the US airframer’s biggest order to date both by size and value.

This breaking post will be updated soon.

Originally posted on Airline Industry Review

American Airlines (IATA:AA) today placed orders for a total of 460 narrow-body aircraft ( 260 firm, and 825 with options) in the history’s largest aircraft order ever. The airline also launched the yet to be named Boeing’s conceptual future narrow-body re-engine aircraft.

The total order numbers are

- 130 Airbus A320 (baseline) aircraft (firm order)

-130 Airbus A320neo family aircraft (firm order)

-365 options and purchase rights with ability to convert slots into either A319 or A321 (options)

-100 Boeing 737NG aircraft with the ability to convert slots to either 737-700 or 737-900ER (options)

-Intends to order 100 Boeing 737RE aircraft once the programme is formally launched in 4Q 2011. American Airlines will be the global launch customer for the 737RE.

Before we move on for an analysis (of this historic yet rather odd deal), let’s go straight to the press release.

 On July 20, 2011, American announced the largest aircraft order in aviation history with landmark agreements
with Airbus and Boeing. These new agreements pave the way for American to have the youngest, most fuelefficient and modern fleet among its U.S. airline peers in roughly five years. In addition, the agreements with
Boeing and Airbus will continue American’s fleet simplification efforts, allowing the airline to transition from four
fleet types (MD-80, 737-800, 757 and 767-200) to two families, the B737 and the A320, which offer significant
commonality within each family.
Under the new agreement, American will acquire 460 narrowbody aircraft from the Airbus A320 and Boeing 737
families beginning in 2013 through 2022. Starting in 2017, American will begin taking delivery of the Airbus
“Neo” next generation narrowbody aircraft that that will accelerate fuel-efficiency gains. American also intends to
purchase 100 of Boeing’s expected new evolution of the 737, which would offer even more significant fuelefficiency gains over today’s models when this option becomes available to customers. American is the first
airline to commit to Boeing’s expected new 737 family offering.
American’s fleet modernization program is a multi-pronged initiative. In addition to taking delivery of new aircraft
from Boeing and Airbus, American has taken significant steps over the past few years to revitalize its existing
fleet. The new aircraft from Boeing and Airbus will serve to replace American’s current MD80s, pre-2009
Boeing 737-800s, Boeing 757-200s and Boeing 767-200s.
Airbus
American will purchase 260 Airbus aircraft from the A320 family with 365 options and purchase rights for
additional aircraft. American has the flexibility to convert its delivery positions into variants within the A320
family, including the A319 and A321.
American will take delivery of 130 current-generation aircraft beginning in 2013. Beginning in 2017 American will
begin taking delivery of 130 A320-family aircraft with Airbus’ “Neo” next-generation engine technology, which is
approximately 15 percent more fuel efficient than today’s models. American will be the first U.S. network airline
to deploy this new-technology aircraft.
A320 Family
The A320 single-aisle jetliner family (composed of the A318, A319, A320 and A321) is used in a full range of
services from very short-haul airline routes to intercontinental segments, on operations from challenging in-city
airports to high-altitude airfields.
The A320’s advanced technology includes the extensive use of weight-saving composites, an optimized wing
that is 20 percent more efficient than previous designs, a centralized fault display for easier troubleshooting and
lower maintenance costs, along with Airbus’ fly-by-wire flight controls.
With the newest Airbus comes with several unique features designed to provide customers a more
contemporary and innovative travel experience:
• Increased comfort: The new Airbus offers a wider aisle for faster boarding and efficient inflight service,
wider seats and increased storage bins.
• Relaxing environment: Interior noticeably reduces noise and provides ambient lighting.
• Fuel efficiency: Airbus “Neo” (new engine option) next-generation engine offers greater fuel efficiency
improvements and longer-range capability.
• Less weight: Weight-saving composites provide an optimized wing that is 20 percent more efficient
than previous designs.
• Improved dependability: The new aircraft are expected to reduce delays and cancellations.
“Neo” Technology
As part of this agreement, American will receive Airbus’ “Neo” (new engine option) next-generation engine
technology for all three fleet types beginning in 2017. The A320neo is an efficiency improvement package which
Airbus is offering as an option for the A319, A320 and A321 models of the A320 Family. Incorporating both
Sharklets and new more fuel-efficient engines, the key benefits of the A320neo compared to today’s A320 are:
• 15 percent reduced fuel burn which is equivalent to 3,600 tons of CO2 savings per year per A320neo
• Two tons additional payload or up to 500 nautical miles/950 kilometers more range
• Significantly reduced noise
• Equivalent fuel burn to the Bombardier C-Series (CS300) but with 1,300 nautical miles more range
• 95 percent airframe spares commonality with the A320 Family which has proven its very high level of
reliability (99.7 percent) in over 54 million flights
Boeing
The new agreement allows American to continue and expand its important and valued relationship with The
Boeing Company, with which it has ongoing and future orders for narrowbody and widebody aircraft. With the
new agreement, American intends to order a total of 200 additional aircraft from the 737 family, with 100 options
for additional 737 aircraft and the ability to access other fleet types within the 737 family, including the 737-700,
737-800 and 737-900ER.
Boeing 737-800s
As part of the Boeing agreement, American will order 100 aircraft from Boeing’s current 737 family. In 2009 and
2010, American took delivery of 76 737-800s. Separate from today’s announcement, American has taken or is
scheduled to take delivery of a total of 54 737-800s from 2011 into 2013. In addition, American will continue to
take delivery of Boeing’s current next-generation 737-800 with Boeing Sky Interior (BSI) – a brand new interior
that includes a modern cabin and innovative LED lighting feature.
American’s fleet of 737-800s will continue to serve North America, the Caribbean and selected shorter to
medium-haul Central and South American routes.
Boeing’s Next-Generation 737-800 include advanced technology winglets that will allow American to save on
fuel, extend range, carry more payload and reduce engine maintenance costs. Depending on a range of factors,
winglets of the Next-Generation aircraft have the potential to:
• Lower operating costs by reducing block fuel burn by 3.5 to 4.0 percent on missions greater than 1,000
nautical miles
• Reduce engine maintenance costs
• Increase range up to 130 nautical miles
• Improve payload capability by up to 6,000 pounds (.5 to 3 metric tons)
• Improve takeoff performance and obstacle clearance
• Increase optimum cruise altitude capability
• Reduce community noise by .5 to .7 EPNdB (Effective Perceived Noise Level in Decibels) on takeoff
and slight improvement on approach
• Lower emissions through lower cruise thrust
Boeing Sky Interior
In May 2011, American continued the execution of its fleet modernization plan by taking delivery of its first NextGeneration Boeing 737-800s with the Boeing Sky Interior (BSI) – a brand new interior that includes a modern
cabin and innovative LED lighting feature.
The 737-800s, with 160 seats, include the all-new Boeing Sky Interior, offering several unique features,
including:
• More storage: Modeled after the 787 Dreamliner’s pivoting bins – that pivot down and out – the larger
bins hold 48 more bags than standard overhead bins and four more than current non-BSI aircraft with
larger bins.
• Spaciousness: Sculpted sidewalls provide customers with a feeling of spaciousness and updated
window reveals make the windows appear larger.
• Better lighting: Longer-lasting LED lighting can be programmed to create different effects during the
flight such as soft blue sky overhead.
• Fuel efficiency: Increases fuel efficiency and will burn 35 percent less fuel than an MD-80 on a seat
mile basis.
Expected New Evolution of the 737
Under the agreement, American also intends to order 100 of Boeing’s expected new evolution of the 737NG,
with a new engine that would offer even more significant fuel-efficiency gains over today’s models. American is
the first airline to commit to Boeing’s new 737 family offering, which is expected to provide a new level of
economic efficiency and operational performance, pending final confirmation of the program by Boeing.

Originally posted on Airline Industry Review

It was widely reported recently on many major news sources, that the long-time Boeing loyal American Airlines is contemplating a deal with Airbus for up to 250 aircraft. As per the news reports, American (AA) had first talked to Airbus and only then returned to Boeing asking to make a counter offer. Why am I saying that this is a very lucrative deal to all three of them? Let’s find out.

American Airlines is not in a very financially strong level. And its fleet of old McDonnell Douglas MD-80s are ageing fast. And ironically, these less fuel efficient older generation aircraft are in turn widening AA’s losses too. Hence, American is in need of a large scale narrow-body aircraft replacement programme but it does not have so much finances to waste away either. The answer is a RyanAir type mega deal that will bring in aircraft at literally a fraction of their price. Hence the deal is very lucrative to AA both financially and operationally.

Airbus is in a strong need to gain more momentum for its A320neo programme. A conversion of a loyal Boeing customer to the A320neo will set it as the market leader for the market segment, and bring in even more sales. But that’s not all. Airbus seems to believe that the conversion of a loyal customer will force Boeing to re-engine its 737 instead of going to an all new aircraft. Unlike Boeing, Airbus is committed to an aircraft development programme that runs into almost 2017 and hence does not have the resources to commit to building an all new narrow-body aircraft. For this reason, it is very important for Airbus to keep Boeing – which has the resources for a new aircraft programme – too away from building a new aircraft that has the potential to disturb A320neo sales. And converting a Boeing loyal to the re-engined A320neo is a good way to make that happen. This makes the American deal something very lucrative for Airbus.

Boeing has seen its 737′s market share erode in the past few months with the advent of Airbus’ A320neo. Hence it would be very important to Boeing to keep this order from a loyal Boeing customer, to themselves, and to ensure their strong foothold in the commercial aviation arena. The outcome of this order might well set the precedent for Boeing’s future narrow-body plans too. While one could argue that the RyanAir order may have taught Boeing a lesson, and that Boeing might be not so bullish on this order – which does seem so – it is unlikely that Boeing will consider another mega-deal for the A320neo, this time right from Boeing’s home country as unimportant. Hence this deal no doubt is also lucrative to Boeing.

Nevertheless, a decision seems to have been taken and American Airlines has announced a press conference for this (20th) morning. Who do you think will win the order? Leave a comment and share your opinion.

Originally posted on Airline Industry Review

Recently, Airbus COO – Customers, Mr. John Leahy stated that Airbus believes a viable all new narrow-body aircraft could not be made before at least 2030. According to him, the 2020 entry into service of a possible Boeing 797, will deliver only a 3-3.5% better economics than a present day A320 ( and thus even falling behind the re-engined A320neo ).

“So if you want to spend your $10-12 billion, you get that [3-3.5%] and the engines which are available in 2020 – the [A320neo's] GTF and Leap-X, or maybe something from Rolls-Royce with similar SFCs. That’s one of the reasons we decided to launch the Neo.”

said he. And he further believes that Boeing will continue telling the world that they will build an all-new aircraft, but will ultimately simply re-engine the 737.

“When United Airlines bought the A320, Boeing decided it needed to re-do the 737 and that’s exactly what I think is going to happen again. When one big Boeing customer decides to go with the Neo, then all this ‘BS’ about game-changing airplanes available in 2020 will stop, and you’ll see a re-engined 737.”

But I believe that Boeing should indeed build the 797 ( all-new narrow body ). Why ?

At first, there is something that we should make clear to ourselves. Mr. John Leahy, the un-official CMO of Airbus, is speaking with a vested interest. Just like at the time they presented a re-engined Airbus A330 to counter the Boeing 787, right now the task he is charged with is convincing to the world that a re-engined aircraft offers the best-benefits. This is nothing wrong at all, given that Airbus’ success depends on adding more orders. Of course, in the same way, Boeing too is looking at convincing to the world that an all-new aircraft offers the best-benefits.

However, in this case, I believe that Boeing is right and should indeed carry on with building an all-new aircraft. What makes me say so ?

Re-engining the A320 is easier

The A320, having been designed in the early 1980s, is a more modern base design than the 737. This is not to say that the 737 is an outdated design, but having been designed during the 1960s, the 737′s core is not as effective as the A320 with a re-engining. The 737 has already gone through one re-engining process, the 737NG,  which still serves Boeing very well. However, for a re-engining to the newer LEAP-X and GTF engines, the 737 will need a lot of modifications.

While the A320 could be re-engined at a development cost of about $1-2.5b, a 737 re-engining effort may end up costing twice or even more.

There is a gap in the market

The end of 757′s production has left a void in the market that could not be filled by any other aircraft. The 200-250 seater niche with the range to cross the Atlantic is gifted only to the good old 757, and is a sector where it still leads, over five years after the end of its production. Since the beginning, an over 200 seater aircraft is what Boeing has been talking of, and, the market is requesting something similar.

There will be engines

Boeing believes that there will be more advanced engine technology in 2020, than in 2015.

Mike Bair, Boeing’s vice president of Advanced 737 Product Development, says that Boeing is working closely with not just CFM and Pratt & Whitney, but also Rolls-Royce.

“All three of them have given us what they think they can do for an engine that comes into service in [2019 or 2020], and it’s better than what they could do for a [2015 or 2016 entry into service],”

And what is most interesting is that Rolls-Royce will have developed its Advance3 ( 30,000-100,000lb) engine by then. And they are not interested in providing engines for a re-engining project.

“Are we going to support re-engined airplanes, no? Do we believe that’s the right solution for our industry? No. But are we going to fight with every bone in our body and win the future of new airplanes, absolutely. I would put to you, ruling out Rolls-Royce in a sector, ruling out our technology when so much of our industry is defined by the state-of-the-art that would be pretty foolish.”

 

But that’s not all, unlike Airbus; who has the A350 ahead, Boeing is free from any large development projects to come. They have completed the 787-8, with next variants having only minor differences, and they have completed both the 747-8 and the 747-8F. This means that Boeing has much more freedom on spending its cash and resources than Airbus, who will have to focus on the A350.

Obviously, one of Boeing’s biggest goals is preserving its 737 user-base, and a twin-aisle light jet seems to be the best aircraft to achieve it.

That’s not all, by building the 797, Boeing will have the advantage of being-the first mover and enjoy very good sales by being the only all new short to medium haul aircraft for at least five years. The 797, an all-new aircraft, will definitely have much more structural cost savings than a re-engined 737 and the newer ( than on A320neo ) engines and better aerodynamics will definitely give it a minimum 5% cost advantage over the A320neo ( while it may probably in fact have a much higher advantage, given the likelihood of a twin-aisle design ). Passengers would likely prefer a twin-aisle 797 anytime, over a single-aisle A320neo and if Boeing could move the production line to Charleston, it will give Boeing a much higher profit margin on the aircraft. ( And then, if Boeing decides to enter the smaller-end of the market together with Embraer, that could forever change the aviation world as we know it today.)

While Mr. Leahy sounds as if he has snapped a 737 operator to switch to the A320neo, the introduction of a 797, will thus set Boeing as the winner in both a commercial and a strategical perspective.

However, we will not be able to put Mr. Leahy in trouble for a false claim, he claimed that a viable new single-aisle aircraft could not be built before 2030, while the 797 after all would most likely be a twin-aisle aircraft.

Originally posted on Airline Industry Review

Southwest Airlines ( IATA : WN ) has decided to ground 81 Boeing 737 aircraft after one of its Boeing 737-300s had a loss of pressurization after a rupturing of fuselage of aircraft’s top.

Flight 812, a scheduled flight operating from Phoenix to Sacramento diverted to Yuma, Arizona after a loss of pressurization occurred in the cabin. The aircraft landed safely and upon inspection, a hole was found in the aircraft’s top.

Flightpath of Flight 812

?? The aircraft involved is N632SW. One of the youngest Boeing 737-300s in WN’s fleet, having flown for the first time only in 1996. As of 21st March, the aircraft had only 48722 hours logged up after 39768 cycles.

AIRLINE PRESS RELEASE

Southwest Airlines Working With NTSB, FAA, and Boeing to Investigate Cause of Depressurization Event

Carrier To Begin Aggressive Inspection of Fleet to Ensure Safety
DALLAS, April 2, 2011 /PRNewswire via COMTEX/ –

Southwest Airlines (NYSE: LUV) said early this morning it is working with the National Transportation Safety Board (NTSB) to determine the cause of a depressurization event during a Phoenix-Sacramento flight on Friday that diverted to Yuma, Ariz., for a successful emergency landing. Further, the carrier has decided to keep a subset of its Boeing 737 fleet out of the flying schedule to begin an aggressive inspection effort in cooperation with Boeing engineers.

“The safety of our Customers and Employees is our primary concern, and we are grateful there were no serious injuries,” said Mike Van de Ven, Southwest’s executive vice president and chief operating officer. “We have launched personnel to Yuma to begin the investigation process with the NTSB, FAA, and appropriate parties to determine the cause of the depressurization.”

There were 118 passengers on board and five Phoenix-based crew members aboard Flight 812. Preliminary reports indicated the aircraft lost pressure and oxygen masks were deployed. After the plane landed safely in Yuma, the crew confirmed a hole in the top of the aircraft, approximately mid-cabin. One flight attendant was treated at the scene for a minor injury, as was at least one passenger. No injuries required transport to the hospital. The Company arranged for a Southwest Airlines aircraft to transport the Customers from Yuma to Sacramento last night.

Southwest is working with Boeing on an inspection regimen for the 81 affected Boeing 737 aircraft in the fleet, which are covered by a set of Federal Aviation Administration Airworthiness Directives aimed at inspections for aircraft skin fatigue. These aircraft will be inspected over the course of the next several days.

Southwest is working aggressively to minimize Customer inconvenience. Customers are encouraged to check flight status at www.southwest.com before heading to the airport, and any inconvenienced Customers will be reaccommodated.

SOURCE Southwest Airlines

Originally posted on Airline Industry Review

At one moment it appears as if Boeing was really lucky. True, they have the teething problems of the 787. But an all new aircraft is always better. Which is why they are lucky to have the 787 issues now.
Airbus has just fired the A320neo order run with an MoU for 180 frames from IndiGo. But the real reason behind why Airbus had to stick with a re-engined frame is most likely not the lack of technology that is advanced enough, but the lack of resources due to the yet to be built A350. This is where Boeing is lucky. They have already built the new aircraft, the 787, that they were building. With only one new variant ( as of this writing ) left to be built, the program is not going to be a resource drain that could stop Boeing from building an all new narrowbody aircraft.
If Boeing is to launch an all new narrowbody aircraft, it would most like have a proposed Entry Into Service in the 2019-2020 range. This would provide Boeing with the perfect balance in resource availability and new technology availability.
While someone could argue that Airbus could build an all new narrowbody aircraft later on, when more advanced technology is available, this is not going to do any benefit for the European airframer as Boeing would have already achieved a sizeable chunk of the narrowbody market with its first mover advantage. Not to mention the fact that bringing a new model after a reengined variant will only pull down the A320?s residual values further. This will badly affect less profitable carriers which have been operating the non-reengined A320 – leaving a sizeable price gap between the A320 and the new model thus forcing Airbus to reduce the new model’s selling price. This would be different than what Boeing will experience with 737 and new model values, as the market would be in two different stages. At present, as new next generation models are yet to be unveiled, residual values of old technology models are not badly affected. But at the time A320?s replacement hits the market, the market would be flooded with next generation models thus pushing residual values of older technology models even further down. Hence the 737 will be able to hold up its values better, in return helping Boeing’s own new narrowbody aircraft’s profit margin. None of these would have been possible had Boeing thought technology for 787 is not ready yet and had pushed it late.
So, hasn’t Boeing been lucky with its 787 ?Similar Posts:

• Analysis: A320neo and What it means to Boeing
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• Hello world!

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Originally posted on Airline Industry Review

Airbus today introduced A320neo, the new engine option for its popular A320 narrowbody family. The new model promises up to 15% fuel savings and a host of other benefits. What really is the A320neo, and what does it mean to Boeing ? Let’s find out.

A320neo

Fact Sheet
- Available for A319, A320 and A321 as an option
- Comes with CFM and PW engines and sharklets
- A 15% fuel saving
- About 6% operating economics improvement

Airbus A320 entered service in 1988 and has so far been the best selling of all Airbus models. The new upgrade will be offered side by side with the standard version, and can be expected to increase the model’s manufacturer availability by around 15 years.

The new design incorporates wing and pylon area modifications to support the new engines. Detailed design specifications were not provided immediately. The majority of fuel savings are expected out of the engines ( up to 12% ) while the Sharklets ( winglets ) are expected to boost fuel savings by around 3.5%. Since the engines are the most important part of the new A320neo, let’s have a deeper look into the engines.

The engines

The A320neo sees Pratt & Whitney’s re-entry to the narrowbody market, and signals the death loom of IAE – the Rolls Royce and PW joint venture. CFM is onboard as usual, and will also continue to offer the CFM56 model for the A320 standard version, along with IAE.
Both the CFM and PW engines are geared-turbofan models.

CFM LEAP-X

The LEAP-X is the natural evolution of CFM’s highly popular CFM56 offering and incorporates tougher fan-blades into a 500lb lighter engine.

Fuel burn reduction promised: 16% compared to current production engine the type will replace
Emission reduction promised: 50% compared to current CAEP/6 regulations
Entry Into Service: 2015
Participating Programs: Airbus A320neo, Comac C919

Pratt & Whitney PurePower PW1000G

PurePower can be considered as PW’s currently most important engine project and is already undergoing flight testing. The PurePower 1000 also marks PW’s re-entry to the narrowbody market after a long hiatus.

Fuel burn reduction promised: 16% compared to current competing engine the type will replace
Emission reduction promised: 50% compared to current CAEP/6 regulations
Entry Into Service: 2013
Participating Programs: Airbus A320neo, Bombardier C Series, Mitsubishi MRJ, MS-21,

Conclusion
The A320 had seen a continuous decline of its residual values compared to the 737NG, and the A320neo sets to change this trend ( for the neo models ). However, some analysts argue that the A320neo will instead have a negative effect on older A320s thus pushing the model’s value further down. This is true, to some extent.
The A321neo however will likely get a sales boost given that the upgrade pushes it even closer to the uniquely irreplaceable 757-200.
On any case, the A320neo is unlikely to convert a large number of new customers to the Airbus narrowbody family, as the aircraft is more of a stop-gap measure than a true replacement.
The A320neo however, is a gamble to Airbus on one-hand. Just as well the A320neo could boost Airbus sales, it also hinders the airframer’s capability to introduce a new narrowbody model, at least till 2020.
The A320neo could be an interesting choice for the customers and in my opinion, will be of the best interest to either an all new LCC or an existing A320 operator with a large share of older vintage examples.

What does it mean to Boeing ?

Boeing’s narrowbody, the 737′s, competitor just got a lot better. What will this mean to Boeing ?

Boeing is currently in the middle of two flight testing campaigns ( of the 787 and the 747-8 ) and is having enough troubles of its own with the 787′s continuous delays and budget exceeds. Boeing clearly is not in the best position to introduce a new model resources-wise.

Boeing executives have been toying with the idea of whether to re-engine the 737 or to go for a new model, in the past few months. It appears Boeing did not want to rush into a decision ( and nor can they in their current position ). It must also be noted that the 737NG has a lower chance of a reengining without major design changes, due to the type’s lower engine clearance area.

However, the recent developments are more aligned towards one direction – that is, Boeing has chose to build an all new clean-sheet narrowbody. Not only is Boeing flight testing to certify performance improvements for the current Boeing 737 models, the following comment by Klaus Heinemann, CEO of AerCap ( who recently inked LoI to purchase 15 737s ) , further echoes Boeing’s stance.

The 737-800 with its recently announced performance upgrade, its new cabin interior and the superb on wing performance of its CFM engines makes it a formidable
competitor to any re-engine alternative.

Building a clean-sheet design is always more favourable to Boeing for a number of reasons.

1. Boeing is currently in no position to build a new model – They are too tightly strapped with the currently ongoing projects.
2. Development of A320neo means Airbus will not have a new narrowbody model in service till at least 2025 – This gives Boeing time to sort out its current issues, and focus better on the new design and improve it
3. Technology advanced enough to provide an over 20% cost saving is not available yet – The technology growth to come, and Boeing’s learnings on the 787 will help achieve this target more easily

The higher premium ( believed to be about $7m-$8m ) on the A320neo will likely make the 737 more interesting to customers with lower capital. This will be further driven by the fact that Airbus is likely to now onwards focus more on improvements to A320neo rather than the standard version, thus making an incrementally upgraded 737NG more attractive.

Boeing believes that the A320neo will only provide a net operating economics gain of 3%-4%, although Airbus has flatly refused this. The higher number of standard A320 and 737NG family aircraft being operated by airline, as well as in the backlog will make a drastic fare reduction in the market ( solely because of the A320neo ) quite unlikely. Hence this will not make the A320neo an essential upgrade to most airlines, and will only have a quite small impact on overall 737NG sales.
In an ideal world, the next Boeing narrowbody’s best timing for a service entry will be 2018. This will not only provide Boeing time to catch up, but also limit the A320neo’s potential market by reducing its timespan as the leading widebody in the market. Although there’s a chance that a low customer interest could push Airbus into a clean sheet design, just as with the original A350, this will only push the EIS further farther.

The 797′s prospects just got a lot brighter !

Originally posted on Airline Industry Review

MIT has delivered designs of two ultra-efficient green plane models to NASA, as part of a $2.1 million research contract awarded in 2008.
The aircraft feature a different silhouette than to current day models and will offer a 70% fuel burn reduction.
The D Series is expected to replace the 737 while the H Series is expected to replace the 777.
The NASA requirements demanded a 70% fuel burn reduction, a 75% emissions reduction and the ability to take off from shorter runways.

D Series

The D Series will carry around 180 passengers and features rear-mounted engines. The aircraft uses two partial cylinders placed side by side to create a wider structure instead of using a single fuselage cylinder.
MIT believes that the rear mounted engines will intake slower moving air thus reducing the fuel burn ( known as Boundary Layer Ingestion , however also notes that this has some practical drawbacks such as creating more engine stress . However, they expect to mitigate this drawback by travelling around 10% slower than a 737. It is also worth noting that rear-mounted engine are practically hard to maintain too .
The aircraft features thinner wings and a smaller tail to reduce drag.
Mark Drela, the Terry L. Kohler professor of Fluid Dynamics and the lead designer of the D Series believes that the 10% slowness could be recovered by the faster loading and the ability to take off from airports with short runways.
MIT team has designed two versions of the D Series – a higher technology version with 70% fuel burn reduction and a version that could be built with conventional aluminium and current jet technology that would burn 50% less fuel. They expect the latter to be a lower risk, near-term alternative.

H Series

The H Series is expected to carry around 350 passengers and consists of a triangular shaped hybrid wing body.
This type of design has been proposed a multiple times in the past too, in both military and commercial projects. The hybrid wing body blends a wider fuselage with the wings for improved aerodynamics. The large center body creates a forward lift that eliminates the need for a tail to balance the aircraft. Although the H Series currently meets the NASA goals, the researchers expect to further improve the design to meet more objectives.
The MIT team expects to hear from NASA in the next several months about whether it has been selected for the second part of the program, which will provide more funds to one or two of subsonic teams to develop the technologies identified during the first phase. The teams are part of a competition by NASA, in which six U.S teams won contracts. The teams include four teams led by MIT, Boeing, GE Aviation and Northrop Grumman which studied subsonic ( slower than speed of sound ) aircraft and two more teams led by Boeing and Lockheed-Martin which studies supersonic ( faster than speed of sound ) aircraft concepts. NASA identifies these designs as “N+3″, signifying three generations ahead than current designs, and believes advancement of technologies will make it feasible for these designs to fly by around 2035.

However, it remains to see whether these aircraft will be economically viable to build and it is also not clear which are the radical technological improvements used, other than aerodynamics and possibly engine technologies, to achieve a 70% fuel burn reduction. Let’s hope these designs will become a reality and deliver what they promise.

Originally posted on Airline Industry Review

Boeing yesterday announced a set of executive appointment shuffles, to better align leadership.
A few of key changes are as follows

* Elizabeth Lund will become
vice president and general
manager, 767 program,
reporting to Pat Shanahan, vice
president and general manager,
Airplane Programs, Commercial
Airplanes. Lund most recently
was vice president, Product
Development, Commercial
Airplanese.

* Beverly Wyse was named vice
president and general manager,
737 program, also reporting to
Shanahan. She replaces Mark
Jenkins, who recently announced
his retirement after 35 years at
Boeing. Wyse most recently was
vice president and general
manager, 767 program. She will
continue to support the U.S.
tanker program.

* Nicole Piasecki will lead a new
Commercial Airplanes Business
Development function
responsible for the overall
integration of strategic planning
and analysis critical to
maintaining Boeing’s long-term
competitiveness. She previously
was president of Boeing Japan.
* Mike Bair will lead a newly
created Advanced 737 Product
Development team, which will be
responsible for planning the
future of Boeing’s single-aisle
offering. Bair most recently was
vice president, Business Strategy
and Marketing, Commercial
Airplanes.
* Lars Andersen will lead a new
Advanced 777 Product
Development team, which will be
responsible for Boeing’s large
twin-engine, twin-aisle airplane
program. Andersen served in a
number of key roles on the 777
program, culminating in seven
years as vice president and
program manager. He retired in
2007 and returns as a
consultant.

Reading the last entry on Randy’s blog made me go ‘woot!’.
Lars returns !
If you do not know who Lars is, he is truly a catalyst of the Boeing’s 777 program and was the father to the 777-200LR and 777-300ER. In his long tenure at Boeing, he has served in a number of key positions and retired a few years ago as the Program Manager of the 777 program.

Photo by BBC

Let me admit, I have never known Mr. Lars personally or ever met him . But I have great respect towards him as someone who oversaw the development of two of the world’s finest aircraft models ever.

Even more interesting is the position he will overtake – Advanced 777 Product Development .
Although it is yet to be seen whether this is about replacing the entire 777 line or building a new series of models, I am pretty sure Lars will continue to lead the program towards success.

The entire line of appointments, including Mr. Mike’s – yet another highly recognised professional -, in Advanced 737 Product Development, shows that Boeing has decided to step into some aggressive development. Let us wish all the best for future Boeing developments !

Originally posted on Airline Industry Review