Lessor Palma Holding Limited Places Firm Order for up to eight Bombardier Q400 NextGen Aircraft

Bombardier Aerospace today announced that lessor Palma Holding Limited (Palma) has signed a firm purchase agreement for four dual-class Q400 NextGen aircraft. The agreement, which also includes options for an additional four Q400 NextGen aircraft, follows a letter of intent to acquire the aircraft that Bombardier announced on November 18, 2013. Under a joint venture with Ibdar Bank BSC, Palma intends to lease four of the Q400 NextGen aircraft to Ethiopian Airlines.

Photo Credit: Bombardier Aerospace

As previously announced, based on list price, the contract value for Palma’s transaction covering four Q400 NextGen aircraft and four options is approximately $282 million US.
“The two-class configured Q400 NextGen aircraft provides customers like Ethiopian Airlines with operational flexibility, as well as excellent route and lease structures prospects – we look forward to joining the Bombardier family,” said Moulay Omar Alaoui, President, Palma Holding Ltd. “The addition of the Q400 NextGen airliner to our portfolio will present many exciting business development opportunities for our customers.”

“I am delighted to welcome Palma as the first Middle Eastern lessor for the Q400 NextGen aircraft, and the first lessor worldwide for the aircraft’s dual-class configuration,” said Mike Arcamone, President, Bombardier Commercial Aircraft. “As momentum for the Q400 NextGen aircraft continues to build in the Middle East, Africa and elsewhere, we look forward to adding many more operators to the family of 50 that are presently deriving excellent benefits from the aircraft’s operational flexibility, outstanding performance, passenger amenities and environmental credentials.”


Ethiopian Airlines currently operates a fleet that includes 13 Q400 NextGen airliners. Bombardier’s presence in the Middle East and Africa currently includes more than 200 Dash 8/Q-Series turboprops, CRJ regional jets and CSeries single-aisle, mainline aircraft in service or on firm order.

Bombardier Aerospace

SINGAPORE: A350 and 787 set to face off

The rival latest-generation widebodies from Airbus and Boeing will go head to head at an air show for the first time at the Singapore air show, which kicks off on 11 February.
Southeast Asia is a key battleground for the contest between the A350 and the 787, with the Asia-Pacific region accounting for one-third of all sales of the two twinjets.

It will be the first full appearance at an air show by the A350-900. The aircraft’s last public appearance was a fly-past towards the end of the 2013 Paris air show, a week after making its maiden flight.
While the A350 – bearing registration MSN 003 – will take part in the flying display, it is not certain whether it will be joined by the 787. Boeing will only confirm that the Qatar Airways-liveried Dreamliner will be on the static display, although the US manufacturer did memorably return to air show flying at Farnborough  2012 after a 30-year hiatus with a Qatar 787.

All eyes will be on whether the airframers can secure further deals for their new types. Singapore Airlines has already split its loyalties. The city-state’s flag carrier has firm orders for 70 A350-900s, while it is also launch customer for the 787-10, with 30 on order.

Indonesia’s Garuda and Philippine Airlines are looking to the A350 or 787 as a possible replacement for A330s, while Malaysia Airlines is evaluating the A350 and 787 to replace 777-200ERs, although it may plump for the high-gross-weight version of the A330, according to Flightglobal’s Ascend advisory service.
While the Singapore show – held at the Changi Exhibition Centre near the island’s international airport – is unlikely to see the sort of eye-watering mega orders witnessed at Dubai in November, the continued buoyancy of the Southeast Asian market is likely to see plenty of activity for the main airframers.

Singapore Airlines may choose the show to announce an order for the Boeing 777X, joining the three big Gulf airlines which ordered the long-range twinjet at Dubai, as well as its Asian rival Cathay Pacific. Even if Singapore Airlines fails to place a commitment, other heavy hitters in the region may be keen to lock-in delivery slots.

We might see confirmation of an order for 20 A380s from new kid on the leasing block Doric – Airbus expects the contract to be signed in the first quarter. And Indonesia’s Lion Air could use the show to announce its engine choice for the hundreds of A320s it has on order.

On the defence side, Singapore has requested a major upgrade for its 60 F-16s. If the government decides to compete it, it could prompt a battle between original equipment manufacturer Lockheed Martin and BAE Systems to be lead contractor – and between Northrop Grumman and Raytheon to supply the latest-generation radar.

The island state is also a security co-operation participant in the F-35 programme, and its defence minister recently witnessed a flight demonstration of the short take-off and vertical landing B variant in the USA. Meanwhile, Singapore’s airlift requirements should also be interesting, with reports that the government is interested in the Airbus A330 MRTT and Boeing’s C-17.

Historic head-to-heads
There have been some memorable face-offs between competitor aircraft at air shows. Here are just some of them:
Paris 1969: A new era dawns as Europe’s rising supersonic star Concorde squares up with the USA’s just-flown jumbo, the Boeing 747
Paris 1971: A return for Concorde, this time a chance to compare it with its Russian counterpart, the Tupolev Tu-144
Paris 1973: Airbus emerges on the scene with the A300B. Not to be outdone, Lockheed’s L1011 TriStar joins it for one day
Farnborough 1986: Regional rivalry between the BAe 146 and the Fokker 100
Paris 1995: Widebody war as Airbus showed its A330 and A340, and Boeing its 777-200
Farnborough 2004: Boeing and Northrop Grumman unveil full-scale mock-ups of their competing Joint Unmanned Combat Air System (J-UCAS) demonstrators
Paris 2011: Battle of the big boys, with the Airbus A380 in the flying display and the Boeing 747-8 in the static.

Flight Global 

Stunning Photo of the A380 , one word (WOW)

The 2nd place in our #ThroughYourEyes Photo Contest goes to Christian Böhme with this stunning shot of the #A380

Latest Pictures of Air Canada's FIRST 787 (DreamLiner)

In these latest pictures from Boeing's hangar in Seattle, notice the oversized yellow boxes hanging from each wing of our first Dreamliner. Those heavy boxes are used as placeholders until the actual engines, which weigh more than 10,000lb each, can be installed. This way, the wing will keep it shape. Notice anything else that’s new? The landing gear, which are largely manufactured here in Canada, are also in place. More pictures to come next week. Stay Tuned! 

Photo Credit: Boeing Images

Photo Credit: Boeing Images 

Photo Credit: Boeing Images

Photo Credit: Boeing Images

Photo Credit: Boeing Images

Boeing/AirCanada 

Airlines begin push for discounted end-of-line 777s

Airlines are beginning to push for discounts on current generation Boeing 777s, as the airframer looks to bridge a gap in deliveries until the 777X enters service at the end of the decade.

“I think it is common knowledge that aircraft tend to be sold to large and good customers with substantial discounts,” says Christoph Franz, chief executive of the Lufthansa Group, on a potential 777 discount during a media event in New York on 30 January. “So, the question of if there is additional discount to the existing discount, that is an interesting question. Hopefully, we would be able to achieve this discount.”
The list price of a 777 freighter is $300.5 million, according to Boeing.

Photo Credit: Flight Global

The group’s freight arm Lufthansa Cargo operates two 777 freighters with three more on order. However, it has not selected a replacement for the 13 Boeing MD-11s that will remain in its fleet after the last 777 delivery in 2015.

“There are at least 13 MD-11 freighters waiting for roll over,” says Franz. “For us, this gives a perspective that there will be demand in the future for further freighter aircraft and the 777, as we have already five on our orderbook, is a nice aircraft and hopefully we would be one of the customers.”

This is where further discounts could come in.

The Chicago-based airframer faces a steep drop in 777 deliveries after 2016. Deliveries will fall to just six in 2018 from 56 in 2016, Flightglobal’s Ascend Online database shows. They pick up again with the entry-into-service of the 777-9X in 2020.
Boeing acknowledges a need to fill this gap.

“We anticipate being able to build that bridge over the next number of years as we approach 2020,” said Jim McNerney, chairman and chief executive of Boeing, during an earnings call on 29 January. “We are working with [customers] on combined orders for the current 777 as well as the new one. And we anticipate at least the same kind of result that we had with the [7]37.”
Boeing has discounted end-of-line next generation 737s, which helped it land an order from Ryanair for 175 737-800s in March 2013. Deliveries will continue through 2018.

The first 737 Max delivery is scheduled for the second quarter of 2017.
Boeing’s cost control initiatives are critical to any 777 discounts. These include the partnership for success programme where the airframer is forging long-term partnerships with certain suppliers in order to reduce costs in the near term, and its new contract with the International Association of Machinists and Aerospace Workers (IAM) for work on the widebody.

McNerney implied in his recent comments that these initiatives will likely help Boeing maintain its profit margins on the current generation 777 during the bridge.
“Now the partnering for success will be hitting it's mid-stride right around the time that the [777] bridge is being implemented and that’s not by accident,” he said.

In addition to discounts, Boeing could reduce the production rate of the 777 from 8.3 per month – about 100 aircraft per year – to help counter the gap in deliveries.
Lufthansa Cargo became the first operator of the type in the group, when it took delivery of its first 777 freighter in November 2013.

Entry-into-service was uneventful, says Franz. “The best news of it – I didn’t get any complaints,” he says.
Swiss will begin taking delivery of six 777-300ERs begin in 2016 and Lufthansa has an order for 34 777-9X aircraft with deliveries beginning after 2020.

Flight Global

ARJ21 Delayed Again, Due To Enter Service In April-May 2015

The Comac ARJ21 regional jet project has been delayed again, with the aircraft now due to go into service in April or May 2015, eight years later than scheduled early in the program and 13 years after development began.

The first operator, Comac subsidiary Chengdu Airlines, will receive its first unit from the manufacturer late this year or early next year, says the carrier’s deputy general manager, Luo Ning. After that, further preparations will be made before operations begin in April or May, Luo tells local media.

The ARJ21 has been delayed probably more times than even Comac can count. As recently as August last year the first delivery was due in June 2014. When full-scale development began in April 2002, the first delivery was due in 2006, although within weeks that target had been shifted to 2007.

Among the more recent problems, unexpectedly high landing weight forced redesign of the landing gear by supplier Liebherr. Before that, the ARJ21’s mainplane failed its ultimate load test and needed redesign.


Aviation Week

Boeing's New Test Plane: B747-800 with the Seattle Seahawk Livery

EVERETT, Wash., Jan. 29, 2014 /PRNewswire/ -- Boeing (NYSE: BA) today revealed a 747-8 Freighter painted in the livery of the NFL's Seattle Seahawks. The livery commemorates the team's National Football Conference Championship and upcoming appearance in Super Bowl XLVIII.

Boeing is a sponsor of the Seattle Seahawks and has partnered with the team for more than a decade on programs in the Puget Sound area.

"The Seahawks have been an inspiration to our entire community throughout this incredible season," said Boeing Commercial Airplanes President and CEO Ray Conner. "We're honored that we could join together two Northwest icons, the Seahawks and the 747, for this special salute from the entire Boeing team."
This 747-8 is owned by Boeing and currently being used for flight testing. The special livery features the distinctive Seahawks logo and a "12" on the tail to salute the team's fans. The airplane will make its first flight in its new livery on Thurs., Jan. 30.


"The 747 team is proud that one of our airplanes could be used as a tribute to the Seahawks' success this season and a rallying cry for the team as they prepare for the Super Bowl," said Eric Lindblad, vice president and general manager, 747 program, Boeing Commercial Airplanes. "The partnerships we have with the Seahawks and others are making a positive difference in the communities where Boeing employees live and work. We join with all Seahawks fans in wishing the team success on Sunday."

Photo Credit: Boeing Images

Photo Credit: Boeing Images

Photo Credit: Boeing Images 

Photo Credit: Boeing Images

Photo Credit: Boeing Images

Photo Credit: Boeing Images

Photo Credit: Boeing Images

Photo Credit: Boeing Images 

Photo Credit: Boeing Images 

Photo Credit: Boeing Images

Photo Credit: Boeing Images 

Photo Credit: Boeing Images 

The Bird is ready to FLY...

Cirrus poised to fly first Vision SF50

Cirrus Aircraft’s ambition to be the first to market with a single-engined personal jet looks set to become a reality, as it prepares its Vision SF50 prototype for first flight next month. The certification aircraft, C-Zero, will be used for flight performance verification. The two remaining test aircraft – C-One and C-Two – are scheduled to enter service in the second and fourth quarter, and will be used for systems verification and parachute testing, respectively.

An earlier configuration "technology demonstrator" – dubbed V1 – has accumulated around 800 flying hours and 1,000 engine runs since it was built in 2008. However, the new prototypes are more reflective of the production jet, says Cirrus executive vice-president of sales marketing Todd Simmons.

"The purpose of V1 has been to verify and validate the Vision jet design," Simmons says. "C-Zero is the summation of everything we have learned from V-1. For example, we have slightly changed the size and shape of the ruddervators, stabilisers, tail arm and the wing root junction.

"We have also made slight changes to [the] aerodynamic shape of the fuselage, [the] engine mount and its position on the aircraft, along with the interior. To the casual observer C-Zero will not look any different to V1."
The Vision has been a key focus for Cirrus since its launch more than seven years ago. Even during the economic crisis and the funding shortage that ensued, the Duluth, Minnesota-based airframer continued to work on the programme – albeit on a piecemeal basis.

The acquisition of Cirrus in 2011 by China Aviation Industry General Aircraft gave the programme new momentum. "CAIGA has committed $100 million to bring the Vision to market," Simmons says. "We are on track to certificate and deliver the first aircraft in 2015."

The $1.96 million Vision is equipped with a Garmin G3000 cockpit and an emergency parachute system. Powered by a Williams International FJ33 turbofan, the aircraft has a range of 1,200nm (2,220km), a stall speed of 61kt and a cruise speed of 300kt (556km/h).

Cirrus has secured 550 orders for the Vision to date – each with a $100,000 deposit. "Our customers range from [Cirrus] SR22 piston single operators to owners of high performance piston twins and single-engined turboprops, all wanting to move to a jet platform," says Simmons.

 "Our position holders come from across the globe, so once we have secured US approval we will get to work [certificating] the aircraft in the countries where our customers are based." Cirrus plans to offer a dedicated training programme to enable customers to secure their Vision type rating.


Comment: The SF50 is among the league of Very Light Jets (VLJ's) and it is scheduled to enter into service soon. A  few other entrants like the Honda Jet is anticipatory scheduled for entry into service in third/fourth quarter of 2014, however, there are few in operation such as the 

Eclipse 500 from Eclipse Aviation 
Embraer 100 and 500 from Brazil's Embraer 
Citation Mustang from Cessna 

Flight Global

ATR Pursues 90-Seat Twin-Turboprop

Photo Credit: ATR Concept Images 

In the past three years, Avions de Transport Regional (ATR), the Toulouse-based Franco-Italian regional aircraft manufacturer, has tried hard to obtain shareholder approval to launch a 90-seat twin-turboprop to complement its current range of 44- and 72-seat aircraft. ATR is jointly owned by Finmeccanica and the Airbus Group (formerly EADS), as equal partners. This arrangement can and has impeded the decision-making process.

Finmeccanica, Alenia Aermacchi's parent, seeks to acquire more commercial business and it supports the envisioned all-new twin-turboprop, expected to be called ATR 92. However, top executives at the Airbus Group have rejected what they are calling an overzealous approach. “I don't understand such eagerness,” Airbus Chief Executive Fabrice Bregier said earlier this month. Late last year, Tom Enders, the Airbus Group's chairman/CEO, seemed to rank the project low on his list of priorities, creating bitter disappointment at ATR.

According to the turboprop manufacturer's in-house research team, an estimated 1,100 90-seat turboprops will enter service in the next 20 years and no more than three main competitors are expected to share the market. Archrival Bombardier will most likely launch an increased-capacity derivative of its Q400 and China could try hard to export the newly launched MA700 that was developed by Avic and is scheduled to enter service in 2019. The Chinese offering is a 78-80-seat aircraft, but a shortened-fuselage version is planned and a stretched variant is being considered. The latter could prove to be competition for the ATR 92, should either come to fruition.

ATR Chief Executive Filippo Bagnato strongly believes the time is ripe to launch a new program. In the last few years, the turboprop maker concluded orders for a record number of ATR 72s and is gradually increasing production to about 80 aircraft per year. Profitability has been restored, following several weak years. Company executives say the required investment to develop a new aircraft is a relatively modest $1.5-2 billion. However, Enders, Bregier and other Airbus Group leaders remain unconvinced, underscoring again that it is difficult to get major commercial transport manufacturers interested in “small” aircraft. The ATR 72 lists for $24.1 million while the catalogue price of the A320, Airbus's best-seller, is $102.8 million. List price for the A350 is $260.9 million and the A380 mega-transport goes for $414.4 million.

In other words, the Airbus Group, at least in its role as ATR co-owner, could be too big. However, the parent company rejects such criticisms. Previously, Airbus claimed its design office was overloaded by the concurrence of several types in the system—the A380 in its final development phase, the A350 in its initial (and demanding) design phase and the long-delayed A400M military airlifter, all of which involved thousands of engineers. But this is no longer true. The A380's wing problems have been resolved, the A350 is entering the production phase (although derivatives have not been frozen as yet), and the A400M is entering into service.

Perhaps launching a new turboprop is too much of a burden for relatively modest results. History does not favor ATR. For example, when a British partner (the British Aircraft Corp. BAE Systems' predecessor) temporarily joined the multi-national consortium that preceded EADS, it was denied a request to produce a regional twinjet in order to protect the BAe-146. So despite the emerging “jetmania” of that time, ATR remained confined to the turboprop market.


ATR executives, including Bagnato, are studiously avoiding a public airing of the response to their request. But the current freeze shows, again, how difficult European cross-border industrial collaboration can be, even without political interference or the negative effects of economic patriotism. It will be interesting to see if Finmeccanica can make a case for buying the Airbus Group's 50% stake in ATR to become the airframer's sole owner. For now though, this remains a politically awkward question.



My opinion: This is an era of aircraft influx with many competitors, however, my humble opinion is that global travel is becoming more leaner in size but expedient in range efficiency. Little wonder why the A380 failed but the A350 is a great success. All aircraft manufacturers have just about same seat range within production. Besides, more cost efficient yet medium capacity aircraft coming on-board. 

Bombardier Aerospace with it's Q400 (which is a GREAT success) competes aggressively with ATR. The CSeries is making wave into the market, meanwhile, Boeing 737 will ALWAYS be the preferred choice for low-cost, and regional carriers. Airlines are buying up aircraft that has very low operating cost and are compensating it with more seats (even if they're empty). As far as I'm concerned, unless the ATR is meant to WOW the aviation industry, it's a waste. 

Boeing Reports Record 2013 Revenue, EPS and Backlog and Provides 2014 Guidance

These are key tables in this morning's Financial Statement released by Boeing.

The Boeing Company and Subsidiaries Consolidated Statements of Operations (Unaudited)
	Twelve months ended December 31				Three months ended December 31
(Dollars in millions, except per share data)	2013		2012		2013		2012
Sales of products	$76,792		$71,234		$21,482		$19,793
Sales of services	9,831		10,464		2,303		2,509
Total revenues	86,623		81,698		23,785		22,302
Cost of products	(65,640)		(60,309)		(18,610)		(17,206)
Cost of services	(7,553)		(8,247)		(1,758)		(1,816)
Boeing Capital interest expense	(75)		(109)		(20)		(24)
Total costs and expenses	(73,268)		(68,665)		(20,388)		(19,046)
	13,355		13,033		3,397		3,256
Income from operating investments, net	214		268		67		57
General and administrative expense	(3,956)		(3,717)		(1,100)		(943)
Research and development expense, net	(3,071)		(3,298)		(848)		(753)
Gain/(loss) on dispositions, net	20		4		(1)		7
Earnings from operations	6,562		6,290		1,515		1,624
Other income, net	56		62		15		23
Interest and debt expense	(386)		(442)		(96)		(112)
Earnings before income taxes	6,232		5,910		1,434		1,535
Income tax expense	(1,646)		(2,007)		(201)		(557)
Net earnings from continuing operations	4,586		3,903		1,233		978
Net loss on disposal of discontinued operations, net of taxes of $0 and $2	(1)		(3)
Net earnings	$4,585		$3,900		$1,233		$978
Basic earnings per share from continuing operations	$6.03		$5.15		$1.63		$1.29
Net loss on disposal of discontinued operations, net of taxes
Basic earnings per share	$6.03		$5.15		$1.63		$1.29
Diluted earnings per share from continuing operations	$5.96		$5.11		$1.61		$1.28
Net loss on disposal of discontinued operations, net of taxes
Diluted earnings per share	$5.96		$5.11		$1.61		$1.28
Cash dividends paid per share	$1.94		$1.76		$0.485		$0.44
Weighted average diluted shares (millions)	769.5		763.8		768.4		768.3

Comment: From their statement, Boeing has a greater margin in their services group as opposed to their products group. Comparing the margin from 2012 to 2013, Boeing performed better in 2012 than in 2013. For the most part, Boeing has done very well. 

The Boeing Company and Subsidiaries Summary of Business Segment Data (Unaudited)
	Twelve months ended December 31				Three months ended December 31
(Dollars in millions)	2013		2012		2013		2012
Revenues:
Commercial Airplanes	$52,981		$49,127		$14,680		$14,161
Defense, Space & Security:
Boeing Military Aircraft	15,936		16,019		4,395		4,037
Network & Space Systems	8,512		7,911		2,272		2,024
Global Services & Support	8,749		8,677		2,188		2,282
Total Defense, Space & Security	33,197		32,607		8,855		8,343
Boeing Capital	408		468		105		129
Other segment	102		106		22		27
Unallocated items and eliminations	(65)		(610)		123		(358)
Total revenues	$86,623		$81,698		$23,785		$22,302
Earnings from operations:
Commercial Airplanes	$5,795		$4,711		$1,506		$1,266
Defense, Space & Security:
Boeing Military Aircraft	1,465		1,489		441		313
Network & Space Systems	719		562		233		138
Global Services & Support	1,051		1,017		280		300
Total Defense, Space & Security	3,235		3,068		954		751
Boeing Capital	107		88		9		(12)
Other segment	(156)		(186)		(99)		31
Unallocated items and eliminations	(2,419)		(1,391)		(855)		(412)
Earnings from operations	6,562		6,290		1,515		1,624
Other income, net	56		62		15		23
Interest and debt expense	(386)		(442)		(96)		(112)
Earnings before income taxes	6,232		5,910		1,434		1,535
Income tax expense	(1,646)		(2,007)		(201)		(557)
Net earnings from continuing operations	4,586		3,903		1,233		978
Net loss on disposal of discontinued operations, net of taxes of $0 and $2	(1)		(3)
Net earnings	$4,585		$3,900		$1,233		$978
Research and development expense, net:
Commercial Airplanes	$1,807		$2,049		$510		$411
Defense, Space & Security	1,215		1,189		323		321
Other	49		60		15		21
Total research and development expense, net	$3,071		$3,298		$848		$753
Unallocated items and eliminations:
Share-based plans	($95)		($81)		($21)		($17)
Deferred compensation	(238)		(75)		(73)		(26)
Capitalized interest	(69)		(70)		(17)		(17)
Eliminations and other	(703)		(266)		(421)		(140)
Sub-total (included in core operating earnings)	(1,105)		(492)		(532)		(200)
Pension	(1,374)		(787)		(329)		(179)
Postretirement	60		(112)		6		(33)
Total unallocated items and eliminations	($2,419)		($1,391)		($855)		($412)

Comment: Boeing had a 7.84%  or $3.8 billion increase in its Commercial airplane division, however, its defense military aircraft under the  Defense, Space & Security division reduced by -0.52% or -$83 million. This isn't so much of a significant loss. The Operating Margin is higher as compared to last year.

The Boeing Company and Subsidiaries Operating and Financial Data (Unaudited)
Deliveries		Twelve months ended December 31						Three months ended December 31
Commercial Airplanes		2013			2012			2013		2012
737		440			415			110		105
747		24			31			8		10
767		21			26			4		6
777		98			83			25		21
787		65	(1)		46	(3)		25		23	(3)
Total		648			601			172		165
Note: Deliveries under operating lease are identified by parentheses.

Summary: Boeing's decision to ramp up delivery as well decrease backlog so that the company can actually earn that revenue resulted to their increased performance. About a week ago, Boeing announced its increased production and manufacturing rate from 7 to 10 I believe, twice the production rate from last year, this favors Boeing in the long run, and as a result, better performance. I sincerely hope that better performance translates into better and quality products. 

To see more tables, visit Boeing Financials