The Wall Street Journal
By Doug Cameron
Jan. 22, 2014 5:38 p.m. ET
Two of the world's largest makers of business jets on Wednesday forecast that new models would help drive double-digit sales gains this year, though they don't expect an immediate recovery in a market that is halved from its peak in 2008.
Executives from General Dynamics Corp., owner of Gulfstream Inc., and Cessna parent Textron Inc. on Wednesday stopped short of calling a bottom to the five-year slide in jet sales, though pointed to solid demand and a declining inventory of used aircraft.
Business-jet makers have been battling the twin challenges of tight corporate travel budgets over the past five years and the negative perception of private-plane ownership created by some U.S. lawmakers during the financial crisis.
"I see signs of a bottoming out," said Jordan Hansell, chief executive of Columbus, Oh.-based NetJets Inc., which sells fliers part ownership in a fleet of more than 700 planes. The unit of Berkshire Hathaway Inc. placed $17.6 billion in orders for new jets in anticipation of a recovery.
Mr. Hansell said its U.S. flying rose 9% to just shy of 335,000 hours last year, with gains in sales to individuals, small and medium-size businesses and large corporations.
Another sign of the recovery is traffic at Teterboro Airport in New Jersey, one of the world's largest for corporate aviation, where business is on track to return to 2008 levels. Aircraft movements were up 5% through the end of November from a year earlier, having fallen in four of the six previous years.
Global corporate jet shipments peaked at 1,315 in 2008, according to the General Aviation Manufacturers Association, a U.S.-based trade group. Deliveries had fallen to 672 by 2012, and were down 2.1% through the end of November last year, the latest data available.
Gulfstream—the world's largest business-jet manufacturer by sales—had its strongest quarterly performance in two years in the final three months of 2013, and forecasts revenue to rise 11% this year. The company, which specializes in large and midsize jets seating up to eight passengers and four crew that can fly from the U.S. to Asia, expects to deliver 158 jets this year compared with 139 in 2013.
"Gulfstream is the primary growth engine for both [company] earnings and revenue," said General Dynamics CEO Phebe Novakovic on a post-earnings call Wednesday.
Textron, which is more focused on the "light" jet segment that has suffered the largest sales declines, expects its revenue to climb 19% this year as it rolls out more new models. The company received approval last month from regulators to start delivering its Citation M2 and Citation Sovereign+ jets, and is awaiting clearance for the Citation 10 aircraft.
Gulfstream, Bombardier Inc. and Embraer SA are also rolling out new aircraft, some of them kitted out with more advanced entertainment and communications systems than existing models, as well as cabins that are quieter and more humid.
"What we're seeing—in the U.S. and Europe—is an appetite for these newer planes," said Mr. Hansell.
Textron shares closed up 5.3% at $38 on what analysts viewed as a more bullish outlook for the Cessna business.
"The dynamic is [that] new products matter a lot," said Textron Chief Executive Scott Donnelly on a post-earnings call.
Source: http://online.wsj.com
Showing posts with label Bombardier. Show all posts
Showing posts with label Bombardier. Show all posts
Wednesday, January 22, 2014
Saturday, October 26, 2013
New jet to fly University of Pittsburgh Medical Center corporate flag: Plane's whereabouts to be unavailable for real-time public tracking
University of Pittsburgh Medical Center has a new, $50 million corporate jet. But you won't be able to track its movements -- at least not in real time.
That's because UPMC, like thousands of other private plane owners and lessors in Pittsburgh and across the country, has elected to keep its flight records obscured from public view, meaning the jet's whereabouts can't be tracked in real time via typical Internet channels.
"Always been done, for all the reasons" that are customary for big companies -- security, privacy, and to protect the health system's own business interests, UPMC spokesman Paul Wood said.
UPMC's new Bombardier Global Express -- a luxury, ultra long-range business jet with twin Rolls Royce engines -- was assembled last year and was certified to fly in spring 2013. The new plane replaces UPMC's 2002-model Global Express, which UPMC has been using since 2007. That plane, in turn, replaced UPMC's old Bombardier Challenger.
UPMC did not divulge the cost of the plane, but several aviation websites put the estimated cost of a new Bombardier Global Express at $51 million. Leasing a plane of that value, plus fuel and maintenance, would typically cost millions a year.
"The old plane had to be upgraded to meet a variety of safety requirements and regulations. It was easier [and] less expensive to lease a new plane than upgrade the old one. It's the exact same jet that has the exact same annual operating costs as before," Mr. Wood said.
But those who want to follow the jet's flight path around the world will have a difficult time doing so, despite a two-year push to open that sort of data into wider view.
The Obama administration and the Federal Aviation Administration, starting in 2011, sought to tighten access to what was then known as the Block Aircraft Registration Request program, which allowed plane owners to evade those who would follow departures and arrivals via third-party flight-tracking websites.
The new rule required plane owners to show a "valid security concern" -- such as "verifiable threat to person, property or company, including a threat of death, kidnapping or serious bodily harm against an individual" -- in order to block would-be trackers. (Flight plans for private planes, as well as commercial craft, can still be requested from the FAA via a Freedom of Information Act request, so comings and goings can be pieced together weeks or months after the fact.)
The purpose of the rule-tightening was to provide greater transparency into flight data, according to the FAA. At the time the new standard was to go into effect, in summer 2011, about 7,400 of the nation's 357,000 registered airplanes were on the do-not-track list, according to the New York Times.
Why should flight plan data be easily accessible to the public? Because, according to transparency advocates, the use of national airspace relies on a system of air traffic controllers, airports and runways that are largely financed by taxpayers.
"The airways and the air traffic control system is a public commons," said Chuck Collins, scholar at the left-leaning Institute for Policy Studies. "We have to balance private needs and the public interest."
But that view, and the new standard, were opposed by the business aviation community and overruled by Congress by the end of 2011. As a result, the "new" FAA policy, which was formally ratified in September of this year, greatly resembles the one that had been in place since 2000: Dissemination of flight data can again be blocked for any reason at the request of the plane owner.
All manner of plane owners, particularly for-profit corporations (UPMC is a nonprofit) block their tail numbers from public, real-time tracking. Of the 529 private aircraft registered in Allegheny County and others based in suburban counties, dozens have blocked tail numbers.
As for UPMC's new jet, according the FAA's flight registry, the UPMC Global Express is officially owned by a "Wilmington Trust Co. Trustee," whose business address is "UPMC, U.S. Steel Building, 62nd Floor."
Wilmington Trust is a bank and safe-deposit company based in Delaware. The 62nd floor of the U.S. Steel building is where UPMC's International and Commercial Services Division is housed; that floor is also home to the office of UPMC CEO Jeffrey Romoff.
Mr. Wood said the jet is needed for "medical, international and business development purposes. The positive cash flow from UPMC's international operations more than pays for the lease on the jet." UPMC has operations in Italy, Ireland and the U.K. and is moving into Asia.
Many companies of UPMC's size -- $10.2 billion in revenues last fiscal year -- own or exclusively lease their own private jets, but most nonprofits and most hospital systems do not.
"Our expectation is that nonprofits should adhere to higher standards of conduct," said Deborah L. Rhode, a law professor at Stanford Law School who has researched the subject of ethics within the nonprofit world.
Highmark Inc., UPMC's top rival locally, leases air time though Corporate Air, a charter company based at Allegheny County Airport. It has one airplane that is reserved, but that plane is also available for use by other passengers.
If the plane is in use and Highmark executives need to fly on short notice, the company can use another plane from Corporate Air's 18-plane fleet.
Highmark's primary plane, and many of the others operated by Corporate Air, do not have "blocked" tail numbers -- though some of the fleet, particularly the larger Gulfstream planes that fly out of Pittsburgh International Airport, do have blocked numbers.
Story and Comments/Reaction: http://www.post-gazette.com
That's because UPMC, like thousands of other private plane owners and lessors in Pittsburgh and across the country, has elected to keep its flight records obscured from public view, meaning the jet's whereabouts can't be tracked in real time via typical Internet channels.
"Always been done, for all the reasons" that are customary for big companies -- security, privacy, and to protect the health system's own business interests, UPMC spokesman Paul Wood said.
UPMC's new Bombardier Global Express -- a luxury, ultra long-range business jet with twin Rolls Royce engines -- was assembled last year and was certified to fly in spring 2013. The new plane replaces UPMC's 2002-model Global Express, which UPMC has been using since 2007. That plane, in turn, replaced UPMC's old Bombardier Challenger.
UPMC did not divulge the cost of the plane, but several aviation websites put the estimated cost of a new Bombardier Global Express at $51 million. Leasing a plane of that value, plus fuel and maintenance, would typically cost millions a year.
"The old plane had to be upgraded to meet a variety of safety requirements and regulations. It was easier [and] less expensive to lease a new plane than upgrade the old one. It's the exact same jet that has the exact same annual operating costs as before," Mr. Wood said.
But those who want to follow the jet's flight path around the world will have a difficult time doing so, despite a two-year push to open that sort of data into wider view.
The Obama administration and the Federal Aviation Administration, starting in 2011, sought to tighten access to what was then known as the Block Aircraft Registration Request program, which allowed plane owners to evade those who would follow departures and arrivals via third-party flight-tracking websites.
The new rule required plane owners to show a "valid security concern" -- such as "verifiable threat to person, property or company, including a threat of death, kidnapping or serious bodily harm against an individual" -- in order to block would-be trackers. (Flight plans for private planes, as well as commercial craft, can still be requested from the FAA via a Freedom of Information Act request, so comings and goings can be pieced together weeks or months after the fact.)
The purpose of the rule-tightening was to provide greater transparency into flight data, according to the FAA. At the time the new standard was to go into effect, in summer 2011, about 7,400 of the nation's 357,000 registered airplanes were on the do-not-track list, according to the New York Times.
Why should flight plan data be easily accessible to the public? Because, according to transparency advocates, the use of national airspace relies on a system of air traffic controllers, airports and runways that are largely financed by taxpayers.
"The airways and the air traffic control system is a public commons," said Chuck Collins, scholar at the left-leaning Institute for Policy Studies. "We have to balance private needs and the public interest."
But that view, and the new standard, were opposed by the business aviation community and overruled by Congress by the end of 2011. As a result, the "new" FAA policy, which was formally ratified in September of this year, greatly resembles the one that had been in place since 2000: Dissemination of flight data can again be blocked for any reason at the request of the plane owner.
All manner of plane owners, particularly for-profit corporations (UPMC is a nonprofit) block their tail numbers from public, real-time tracking. Of the 529 private aircraft registered in Allegheny County and others based in suburban counties, dozens have blocked tail numbers.
As for UPMC's new jet, according the FAA's flight registry, the UPMC Global Express is officially owned by a "Wilmington Trust Co. Trustee," whose business address is "UPMC, U.S. Steel Building, 62nd Floor."
Wilmington Trust is a bank and safe-deposit company based in Delaware. The 62nd floor of the U.S. Steel building is where UPMC's International and Commercial Services Division is housed; that floor is also home to the office of UPMC CEO Jeffrey Romoff.
Mr. Wood said the jet is needed for "medical, international and business development purposes. The positive cash flow from UPMC's international operations more than pays for the lease on the jet." UPMC has operations in Italy, Ireland and the U.K. and is moving into Asia.
Many companies of UPMC's size -- $10.2 billion in revenues last fiscal year -- own or exclusively lease their own private jets, but most nonprofits and most hospital systems do not.
"Our expectation is that nonprofits should adhere to higher standards of conduct," said Deborah L. Rhode, a law professor at Stanford Law School who has researched the subject of ethics within the nonprofit world.
Highmark Inc., UPMC's top rival locally, leases air time though Corporate Air, a charter company based at Allegheny County Airport. It has one airplane that is reserved, but that plane is also available for use by other passengers.
If the plane is in use and Highmark executives need to fly on short notice, the company can use another plane from Corporate Air's 18-plane fleet.
Highmark's primary plane, and many of the others operated by Corporate Air, do not have "blocked" tail numbers -- though some of the fleet, particularly the larger Gulfstream planes that fly out of Pittsburgh International Airport, do have blocked numbers.
Story and Comments/Reaction: http://www.post-gazette.com
Monday, October 21, 2013
Business-Jet Outlook Is Scaled Back: Full Recovery for Deliveries Likely Remains a Decade Away
By Jon Ostrower
The Wall Street Journal
Oct. 20, 2013 10:05 p.m. ET
LAS VEGAS—Manufacturing of new business jets isn't likely to recover to pre-recession levels for at least another decade, according to a closely watched new forecast that trimmed the number of aircraft deliveries over the next 10 years by about 8% from the year-earlier projection.
The annual forecast from Honeywell International Inc. estimates global deliveries of as many as 9,250 new business jets from 2013 to 2022, down from the "nearly 10,000" guidance provided in 2012.
Deliveries of new business jets halved from their 2008 peak of 1,315 to 672 last year, according to the General Aviation Manufacturers Association, an industry trade group. Deliveries have fallen for four straight years, with the business staging a slow and uneven recovery from the aftermath of the financial crisis that reduced the order backlogs of many smaller manufacturers, forcing some to cut production or exit the market.
Honeywell makes products including cabin electronics, navigation systems and jet engines for corporate aircraft. Its forecast comes on the eve of the industry's largest trade show, the National Business Aviation Association annual convention that starts here on Monday.
While fewer deliveries are forecast over the next decade, Honeywell said the business-jet market is valued at $250 billion, some 2% to 3% higher than its forecast last year.
That growth is driven by the increasing share deliveries of the largest long-range jets from plane makers such as Bombardier Inc. and Gulfstream Aerospace Corp., a unit of General Dynamics Corp. Some 80% of the dollar value and 60% of the units will come from jets that cost about $25 million each and up, Honeywell said.
While commercial-jetliner deliveries are rising to new records, the number for new business aircraft is expected to decline to a range of 600 to 625 this year.
Rob Wilson, president of Honeywell's business and general-aviation unit, said he expects manufacturers to return to their 2008 sales peak by 2016 with about $22 billion in deliveries, spurred by the introduction of new, larger models. However, the annual volume of aircraft deliveries isn't expected to return to 2008 levels any time in the next decade, Mr. Wilson said.
The tough conditions in the market were underscored on Friday by Cessna Aircraft Co. The Textron Inc. unit posted a $23 million third-quarter loss amid fewer deliveries of smaller jets. Cessna revenue fell 24% from a year earlier to $593 million.
Cessna and its rivals face competition from each other and heavily discounted used aircraft, many of them nearly new.
Scott Donnelly, Textron's chief executive, said during a conference call to discuss the results that its own used jets still pose "significant competition" to Cessna. He added that while the number for sale continues to drop, "the pace of that is not as fast as we'd like."
Honeywell also measures future acquisition plans to forecast demand regionally. Mr. Wilson said jet-buying plans of operators in Brazil, Russia, India and China—future drivers of industry growth—"reflect a slight tempering of enthusiasm compared to a year ago," with reduced acquisition plans for the next five years.
However, Honeywell said operators in North America—which accounts for more than half of projected global demand—have experienced a slight uptick in buying plans, anticipating a mid-decade acceleration "affirming the region's indisputable importance to the industry's future."
Source: http://online.wsj.com
The Wall Street Journal
Oct. 20, 2013 10:05 p.m. ET
LAS VEGAS—Manufacturing of new business jets isn't likely to recover to pre-recession levels for at least another decade, according to a closely watched new forecast that trimmed the number of aircraft deliveries over the next 10 years by about 8% from the year-earlier projection.
The annual forecast from Honeywell International Inc. estimates global deliveries of as many as 9,250 new business jets from 2013 to 2022, down from the "nearly 10,000" guidance provided in 2012.
Deliveries of new business jets halved from their 2008 peak of 1,315 to 672 last year, according to the General Aviation Manufacturers Association, an industry trade group. Deliveries have fallen for four straight years, with the business staging a slow and uneven recovery from the aftermath of the financial crisis that reduced the order backlogs of many smaller manufacturers, forcing some to cut production or exit the market.
Honeywell makes products including cabin electronics, navigation systems and jet engines for corporate aircraft. Its forecast comes on the eve of the industry's largest trade show, the National Business Aviation Association annual convention that starts here on Monday.
While fewer deliveries are forecast over the next decade, Honeywell said the business-jet market is valued at $250 billion, some 2% to 3% higher than its forecast last year.
That growth is driven by the increasing share deliveries of the largest long-range jets from plane makers such as Bombardier Inc. and Gulfstream Aerospace Corp., a unit of General Dynamics Corp. Some 80% of the dollar value and 60% of the units will come from jets that cost about $25 million each and up, Honeywell said.
While commercial-jetliner deliveries are rising to new records, the number for new business aircraft is expected to decline to a range of 600 to 625 this year.
Rob Wilson, president of Honeywell's business and general-aviation unit, said he expects manufacturers to return to their 2008 sales peak by 2016 with about $22 billion in deliveries, spurred by the introduction of new, larger models. However, the annual volume of aircraft deliveries isn't expected to return to 2008 levels any time in the next decade, Mr. Wilson said.
The tough conditions in the market were underscored on Friday by Cessna Aircraft Co. The Textron Inc. unit posted a $23 million third-quarter loss amid fewer deliveries of smaller jets. Cessna revenue fell 24% from a year earlier to $593 million.
Cessna and its rivals face competition from each other and heavily discounted used aircraft, many of them nearly new.
Scott Donnelly, Textron's chief executive, said during a conference call to discuss the results that its own used jets still pose "significant competition" to Cessna. He added that while the number for sale continues to drop, "the pace of that is not as fast as we'd like."
Honeywell also measures future acquisition plans to forecast demand regionally. Mr. Wilson said jet-buying plans of operators in Brazil, Russia, India and China—future drivers of industry growth—"reflect a slight tempering of enthusiasm compared to a year ago," with reduced acquisition plans for the next five years.
However, Honeywell said operators in North America—which accounts for more than half of projected global demand—have experienced a slight uptick in buying plans, anticipating a mid-decade acceleration "affirming the region's indisputable importance to the industry's future."
Source: http://online.wsj.com
Thursday, October 17, 2013
Beechcraft Owners Said to Be Approaching Potential Bidder
Beechcraft Corp., the
U.S. planemaker whose aircraft have trained military pilots since World
War II, is for sale again, people with knowledge of the matter said.
Credit Suisse Group AG is contacting potential suitors on their interest in acquiring Beechcraft, said the people, who asked not to be identified because the discussions are private. Beechcraft may fetch about $1.5 billion, another person said. Cessna Aircraft parent Textron Inc. is among companies exploring a bid, said two of the people.
Beechcraft could be attractive to companies focused on smaller defense and general aviation aircraft after shedding debt from an earlier leveraged buyout and shutting a struggling jet unit, said Richard Aboulafia, aerospace analyst with Teal Group, a Fairfax, Virginia-based consultant.
“You get military trainers, you get the world’s most popular turboprop aircraft,” Aboulafia said in a phone interview.
Slumping demand for private jets and curbs on U.S. defense spending led the company, formerly known as Hawker Beechcraft, to file for bankruptcy in May 2012. Negotiations to sell it for $1.79 billion to a Chinese buyer collapsed months later. Beechcraft exited court protection in February and has publicly said it’s selling Hawker assets to focus on propeller-driven and military planes.
‘Good fit’
At the right price, Beechcraft could be a good fit for Textron, whose holdings include Bell helicopters, military drones and Cessna aircraft, Textron CEO Scott Donnelly said during a July 2012 quarterly earnings call after the Chinese bid for Beechcraft was made public.
“I think some of the assets of the company are interesting and would be a good fit in our company and that we could do the right thing for their existing customers and our customers -- it would all work,” Donnelly said at the time.
Beechcraft’s twine-engine King Air turboprops would compliment Cessna’s single-engine Caravan line, especially after Beechcraft landed a $788 million order in August, said Brian Foley, who heads Brian Foley Associates, a Sparta, New Jersey consultant.
The King Air division is Beechcraft’s most valuable asset and biggest driver of its profits, Foley said in a phone interview.
“They practically rule the twin-engine general aviation market,” he said. “They have a very good brand, loyal customer following.”
A spokesman for Credit Suisse declined to comment. Nicole Alexander, a spokeswoman for Beechcraft, and David Sylvestre, a spokesman for Providence, Rhode Island-based Textron, both declined to comment.
Cessna, Bombardier
Beechcraft, based in Wichita, Kansas, is now controlled by its former creditors. Centerbridge Partners LP, Sankaty Advisors LLC and Angelo, Gordon & Co. are among the funds that own a combined stake of about 90 percent and took control following the bankruptcy, according to the company. Before bankruptcy, Hawker Beechcraft was owned by Goldman Sachs Group Inc. and Onex Corp.
Negotiations to sell Hawker Beechcraft to Superior Aviation Beijing Co. ended in 2012 while the planemaker was reorganizing, partly because of questions about the Chinese company’s financing, people familiar with the process said at the time.
Recovery in Demand
Beechcraft, whose competitors include Canada’s Bombardier Inc. and Brazil’s Embraer SA, is now seeing a recovery in demand and estimates first-half deliveries rose 67 percent to 115 airplanes. King Air sales will help drive up revenue and earnings “materially” this year and the next, Standard & Poor’s said in April.
Signs of a recovery are also evident in worldwide aircraft shipments tracked by the General Aviation Manufacturers Association, a trade group. Deliveries of multi-engine turboprops rose 71 percent in the first half of 2013 versus a year earlier and single-engine turboprop deliveries rose 3.8 percent. Piston-engine airplanes increased 16 percent, while business jet shipments fell 4.1 percent.
“We’ve already turned the corner,” said Foley, who described business jets as a lagging indicator for the sector.
Any deal involving Beechcraft’s defense assets being sold to non-U.S. suitors would be subject to a review from the Committee on Foreign Investment in the U.S.
Beechcraft had previously announced plans to sell by the end of the year assets from its shuttered Hawker and Premier IA jet units, including certificates, spare parts and a manufacturing plant. Foley said he expects those assets to still be sold separately from the rest of the company.
Story and Comments/Reaction: http://www.bloomberg.com
Credit Suisse Group AG is contacting potential suitors on their interest in acquiring Beechcraft, said the people, who asked not to be identified because the discussions are private. Beechcraft may fetch about $1.5 billion, another person said. Cessna Aircraft parent Textron Inc. is among companies exploring a bid, said two of the people.
Beechcraft could be attractive to companies focused on smaller defense and general aviation aircraft after shedding debt from an earlier leveraged buyout and shutting a struggling jet unit, said Richard Aboulafia, aerospace analyst with Teal Group, a Fairfax, Virginia-based consultant.
“You get military trainers, you get the world’s most popular turboprop aircraft,” Aboulafia said in a phone interview.
Slumping demand for private jets and curbs on U.S. defense spending led the company, formerly known as Hawker Beechcraft, to file for bankruptcy in May 2012. Negotiations to sell it for $1.79 billion to a Chinese buyer collapsed months later. Beechcraft exited court protection in February and has publicly said it’s selling Hawker assets to focus on propeller-driven and military planes.
‘Good fit’
At the right price, Beechcraft could be a good fit for Textron, whose holdings include Bell helicopters, military drones and Cessna aircraft, Textron CEO Scott Donnelly said during a July 2012 quarterly earnings call after the Chinese bid for Beechcraft was made public.
“I think some of the assets of the company are interesting and would be a good fit in our company and that we could do the right thing for their existing customers and our customers -- it would all work,” Donnelly said at the time.
Beechcraft’s twine-engine King Air turboprops would compliment Cessna’s single-engine Caravan line, especially after Beechcraft landed a $788 million order in August, said Brian Foley, who heads Brian Foley Associates, a Sparta, New Jersey consultant.
The King Air division is Beechcraft’s most valuable asset and biggest driver of its profits, Foley said in a phone interview.
“They practically rule the twin-engine general aviation market,” he said. “They have a very good brand, loyal customer following.”
A spokesman for Credit Suisse declined to comment. Nicole Alexander, a spokeswoman for Beechcraft, and David Sylvestre, a spokesman for Providence, Rhode Island-based Textron, both declined to comment.
Cessna, Bombardier
Beechcraft, based in Wichita, Kansas, is now controlled by its former creditors. Centerbridge Partners LP, Sankaty Advisors LLC and Angelo, Gordon & Co. are among the funds that own a combined stake of about 90 percent and took control following the bankruptcy, according to the company. Before bankruptcy, Hawker Beechcraft was owned by Goldman Sachs Group Inc. and Onex Corp.
Negotiations to sell Hawker Beechcraft to Superior Aviation Beijing Co. ended in 2012 while the planemaker was reorganizing, partly because of questions about the Chinese company’s financing, people familiar with the process said at the time.
Recovery in Demand
Beechcraft, whose competitors include Canada’s Bombardier Inc. and Brazil’s Embraer SA, is now seeing a recovery in demand and estimates first-half deliveries rose 67 percent to 115 airplanes. King Air sales will help drive up revenue and earnings “materially” this year and the next, Standard & Poor’s said in April.
Signs of a recovery are also evident in worldwide aircraft shipments tracked by the General Aviation Manufacturers Association, a trade group. Deliveries of multi-engine turboprops rose 71 percent in the first half of 2013 versus a year earlier and single-engine turboprop deliveries rose 3.8 percent. Piston-engine airplanes increased 16 percent, while business jet shipments fell 4.1 percent.
“We’ve already turned the corner,” said Foley, who described business jets as a lagging indicator for the sector.
Any deal involving Beechcraft’s defense assets being sold to non-U.S. suitors would be subject to a review from the Committee on Foreign Investment in the U.S.
Beechcraft had previously announced plans to sell by the end of the year assets from its shuttered Hawker and Premier IA jet units, including certificates, spare parts and a manufacturing plant. Foley said he expects those assets to still be sold separately from the rest of the company.
Story and Comments/Reaction: http://www.bloomberg.com
Thursday, September 26, 2013
Lion Air Considers Buying Bombardier Jets: Canadian Plane Maker Tries to Improve Backlog of CSeries Orders
September 26, 2013, 5:43 p.m. ET
By JON OSTROWER
The Wall Street Journal
Bombardier Inc. said Thursday it is in talks with Lion Air of Indonesia about a potential sale of the Canadian company's CSeries jetliners to the budget carrier, a deal that would bolster the plane maker's efforts to secure new customers.
Bombardier has struggled to build a significant backlog of orders for its new 100- to 160-seat CSeries jets amid fierce competition from established competitors Boeing Co. and Airbus.
Lion Air Chief Executive Rusdi Kirana said in Montreal on Thursday that he was impressed by Bombardier's CSeries. Mr. Kirana said he met Wednesday with Mike Arcamone, president of Bombardier Commercial Aircraft, and toured a CSeries jet. A spokesman for Bombardier confirmed that the meeting took place.
Bombardier declined to comment on when any deal might be completed, but a spokesman for the Canadian company said it was "pleased" with Mr. Kirana's "positive comments" about the aircraft, which made its first flight on Sept. 16.
Mr. Kirana was reported to have said he wants to complete a deal with Bombardier in time for the 2014 Farnborough air show outside of London.
Bombardier current backlog for the CSeries stands at 177 firm orders. List prices for the CSeries are $63 million for smaller versions and $72 million for larger models, before discounts, compared with about $70 million to $92 million for similar models from Boeing and Airbus.
Lion Air purchased 230 Boeing planes in 2012 and 234 Airbus aircraft earlier this year to support its growth plans for Southeast Asia. Airbus is a unit of European Aeronautic Defence & Space Co.
Source: http://online.wsj.com
By JON OSTROWER
The Wall Street Journal
Bombardier Inc. said Thursday it is in talks with Lion Air of Indonesia about a potential sale of the Canadian company's CSeries jetliners to the budget carrier, a deal that would bolster the plane maker's efforts to secure new customers.
Bombardier has struggled to build a significant backlog of orders for its new 100- to 160-seat CSeries jets amid fierce competition from established competitors Boeing Co. and Airbus.
Lion Air Chief Executive Rusdi Kirana said in Montreal on Thursday that he was impressed by Bombardier's CSeries. Mr. Kirana said he met Wednesday with Mike Arcamone, president of Bombardier Commercial Aircraft, and toured a CSeries jet. A spokesman for Bombardier confirmed that the meeting took place.
Bombardier declined to comment on when any deal might be completed, but a spokesman for the Canadian company said it was "pleased" with Mr. Kirana's "positive comments" about the aircraft, which made its first flight on Sept. 16.
Mr. Kirana was reported to have said he wants to complete a deal with Bombardier in time for the 2014 Farnborough air show outside of London.
Bombardier current backlog for the CSeries stands at 177 firm orders. List prices for the CSeries are $63 million for smaller versions and $72 million for larger models, before discounts, compared with about $70 million to $92 million for similar models from Boeing and Airbus.
Lion Air purchased 230 Boeing planes in 2012 and 234 Airbus aircraft earlier this year to support its growth plans for Southeast Asia. Airbus is a unit of European Aeronautic Defence & Space Co.
Source: http://online.wsj.com
Monday, September 16, 2013
New Bombardier Jet Takes Flight: Canadian Aircraft Maker Seeks to Make Inroads Against Boeing and Airbus
Updated September 16, 2013, 7:26 p.m. ET
By JON OSTROWER
The Wall Street Journal
MIRABEL, Québec—Bombardier Inc.'s new CSeries jet made its maiden flight here Monday, a major milestone in the Canadian company's bid to take on giants Boeing Co. and Airbus in the market for small passenger jets.
The 120-passenger jetliner landed safely about 2½ hours after taking off under clear skies from Bombardier's factory here north of Montreal in front of thousands of employees, customers, and others who had gathered to watch.
The single-aisle CSeries makes Bombardier the first new entrant in the market for the smallest category of mainline passenger jets since 1987, when Airbus, now a unit of European Aeronautic Defence & Space Co., first flew its A320. Airbus and Boeing have been the only Western producers of larger commercial jets in the market since 1997, when Boeing merged with McDonnell Douglas.
The CSeries could be the last all-new aircraft from a Western manufacturer to enter the market for some time.
Companies in Japan, China and Russia are all working on new jets. But while Airbus, Boeing and Embraer SA—a Brazilian manufacturer that like Bombardier has focused on smaller, regional jets—all plan major modifications to existing models, they aren't known to be working on all-new designs now, meaning they're unlikely to bring any new planes to market before the middle of the 2020s.
The CSeries version that flew Monday lists for $63 million, with a larger version at $72 million, before discounts, compared with about $70 million to $92 million for comparable models from Boeing and Airbus, which have offered aggressive discounts to keep Bombardier from gaining traction, according to industry officials.
Bombardier has also set aggressive performance targets for the CSeries, including what it claims is 20% better fuel efficiency than competing models, to woo cost-conscious airlines.
Monday's takeoff was nearly silent, highlighting another of Bombardier's selling points for the CSeries, which it says is engineered to be quiet so that it can be used at smaller, noise-restricted airports.
Customers have ordered 177 of the CSeries jets. But airline executives are still looking for more evidence that the jet will deliver the company's touted performance—and waiting to see how much Bombardier plans to discount the plane.
The maiden flight give Bombardier "another element for their sales team to go and sell it," said Nico Buchholz, executive vice president of Deutsche Lufthansa AG, which has an order for up to 60 CSeries for its Swiss International Air Lines unit. But whether it will sell well, he said, depends on how aggressively Bombardier will use discounts and other incentives.
Guy Hachey, chief executive of Bombardier's aerospace division, said the company hopes to collect data over the first 100 hours of flying the aircraft to feed to sales executives to validate its claims to customers. "We'll be able to back up all the performance guarantees we've been making all along," he said.
Mr. Hachey said Bombardier hopes the CSeries will help the company's aerospace division to increase its annual revenue by an estimated $5 billion to $8 billion—it was $8.6 billion in 2012—once it reaches production of 120 jets a year.
The CSeries program is running roughly nine months behind schedule—the first flight was originally scheduled for last December—but that pales in comparison with the delays and cost overruns suffered by Boeing and Airbus in developing their newest jets.
Bombardier expects the development to cost $3.9 billion, said Mike Arcamone, president of Bombardier Commercial Aircraft, a unit of the aerospace division. The company had previously estimated the cost at $3.4 billion. A spokesman attributed the difference to new financial reporting standards that took effect in 2011 that prompted Bombardier to factor in interest costs.
Bombardier has said it plans to deliver the first CSeries after it completes certification by regulators, which itself could take a year following Monday's flight. Bombardier said it will evaluate the timing of the planned first delivery in coming weeks as the CSeries progresses in flight testing.
It has declined to identify who its first customer for the jet will be, but one person familiar with the company's plans says that Malmö Aviation of Sweden, a unit of Braathens Aviation Group, will take the first jet.
Source: http://online.wsj.com
Photo Gallery: http://www.usatoday.com
By JON OSTROWER
The Wall Street Journal
MIRABEL, Québec—Bombardier Inc.'s new CSeries jet made its maiden flight here Monday, a major milestone in the Canadian company's bid to take on giants Boeing Co. and Airbus in the market for small passenger jets.
The 120-passenger jetliner landed safely about 2½ hours after taking off under clear skies from Bombardier's factory here north of Montreal in front of thousands of employees, customers, and others who had gathered to watch.
The single-aisle CSeries makes Bombardier the first new entrant in the market for the smallest category of mainline passenger jets since 1987, when Airbus, now a unit of European Aeronautic Defence & Space Co., first flew its A320. Airbus and Boeing have been the only Western producers of larger commercial jets in the market since 1997, when Boeing merged with McDonnell Douglas.
The CSeries could be the last all-new aircraft from a Western manufacturer to enter the market for some time.
Companies in Japan, China and Russia are all working on new jets. But while Airbus, Boeing and Embraer SA—a Brazilian manufacturer that like Bombardier has focused on smaller, regional jets—all plan major modifications to existing models, they aren't known to be working on all-new designs now, meaning they're unlikely to bring any new planes to market before the middle of the 2020s.
The CSeries version that flew Monday lists for $63 million, with a larger version at $72 million, before discounts, compared with about $70 million to $92 million for comparable models from Boeing and Airbus, which have offered aggressive discounts to keep Bombardier from gaining traction, according to industry officials.
Bombardier has also set aggressive performance targets for the CSeries, including what it claims is 20% better fuel efficiency than competing models, to woo cost-conscious airlines.
Monday's takeoff was nearly silent, highlighting another of Bombardier's selling points for the CSeries, which it says is engineered to be quiet so that it can be used at smaller, noise-restricted airports.
Customers have ordered 177 of the CSeries jets. But airline executives are still looking for more evidence that the jet will deliver the company's touted performance—and waiting to see how much Bombardier plans to discount the plane.
The maiden flight give Bombardier "another element for their sales team to go and sell it," said Nico Buchholz, executive vice president of Deutsche Lufthansa AG, which has an order for up to 60 CSeries for its Swiss International Air Lines unit. But whether it will sell well, he said, depends on how aggressively Bombardier will use discounts and other incentives.
Guy Hachey, chief executive of Bombardier's aerospace division, said the company hopes to collect data over the first 100 hours of flying the aircraft to feed to sales executives to validate its claims to customers. "We'll be able to back up all the performance guarantees we've been making all along," he said.
Mr. Hachey said Bombardier hopes the CSeries will help the company's aerospace division to increase its annual revenue by an estimated $5 billion to $8 billion—it was $8.6 billion in 2012—once it reaches production of 120 jets a year.
The CSeries program is running roughly nine months behind schedule—the first flight was originally scheduled for last December—but that pales in comparison with the delays and cost overruns suffered by Boeing and Airbus in developing their newest jets.
Bombardier expects the development to cost $3.9 billion, said Mike Arcamone, president of Bombardier Commercial Aircraft, a unit of the aerospace division. The company had previously estimated the cost at $3.4 billion. A spokesman attributed the difference to new financial reporting standards that took effect in 2011 that prompted Bombardier to factor in interest costs.
Bombardier has said it plans to deliver the first CSeries after it completes certification by regulators, which itself could take a year following Monday's flight. Bombardier said it will evaluate the timing of the planned first delivery in coming weeks as the CSeries progresses in flight testing.
It has declined to identify who its first customer for the jet will be, but one person familiar with the company's plans says that Malmö Aviation of Sweden, a unit of Braathens Aviation Group, will take the first jet.
Source: http://online.wsj.com
Photo Gallery: http://www.usatoday.com
Saturday, September 14, 2013
CSeries first flight set for Monday with Live Streaming Video
~ Hat tip to Rob "Biz Jets" ~
http://cseriesfirstflight.bombardier.com
MONTREAL — The CSeries will fly on Monday — barring rain or a technical glitch.
Bombardier Inc. said the long-awaited event would finally go ahead “pending optimal weather conditions and aircraft readiness.”
Five years after Bombardier Inc. launched the airliner program at the Farnborough air show in 2008, the CSeries’ first model, the 110-seat CS100, is now scheduled to perform its much-anticipated maiden flight at Mirabel on Monday morning in front of about 3,000 people.
But the weather remains a question mark. Bombardier has been waiting for sunny and dry weather, and there is a forecast 60-per-cent chance of showers on Monday. It appeared at one point the weekend would hold a two-day respite from the mercurial weather of the past week, raising the possibility the flight would be held on Sunday. Clement weather is a key element as the company wants a dry runway to test some metrics — and the wow factor for employees, airline customers and VIPs in attendance.
Bombardier Aerospace spokesperson Marc Duchesne said “we need nice weather” for the event, but would not say whether the flight would be scrubbed if it rains.
He said the exact time of the flight would be confirmed on Sunday, but its duration would be known only at landing. The airliner, which is just starting its year-long — and maybe more — flight-test program, will be followed throughout the flight by a chase plane, a Bombardier Global 5000. The high-end corporate jet will carry cameras and other unspecified equipment for various measurements.
Bombardier’s top executives will attend “if they’re in Montreal that day,” Duchesne said.
The first flight of the CSeries — the name originally stood for “competitive continental connector” — will be over Quebec territory only after Transport Canada issued the test aircraft its licence to fly on Aug. 30.
ICAR, a Bombardier neighbour in Mirabel, is charging the public $20 per car to attend the event “only metres from the runway.”
Duchesne said “unfortunately, we can’t accommodate the general public,” but invited those interested to watch a live webcast at www.cseriesfirstflight.bombardier.com or www.premiervolcseries.bombardier.com.
Originally scheduled by the end of last year, the inaugural flight — if no snags crop up by Monday — will be 8½ months late.
Aerospace consultants say the delay, although embarrassing for Bombardier, is within the norm for such a project. The CSeries is Bombardier’s most ambitious — and risky — aircraft program in its 27-year history after it acquired Canadair in 1986 for $200 million. It’s the first so-called “clean-sheet design” — a brand new aircraft rather than modelled on an existing platform — single-aisle airplane in 26 years since the Airbus A320 first flew in 1987. It will feature wing-mounted engines, a first for any Bombardier jet.
The arrival of the CSeries heralds a significant shift in the world’s aircraft pecking order. It will start to engage the market addressed by the world’s two major aircraft-makers — Boeing Co. and Airbus SAS — shaking up the duopoly the two manufacturers have shared for more than four decades. The most recent aircraft-development programs for both firms incurred huge delays. Boeing’s 787 Dreamliner was nearly four years late, and is still having teething problems with its lithium ion batteries, while Airbus posted numerous time delays and cost overruns for its A380 double-decker, A350 and A440 military transport. The A350’s first flight came only at the Paris air show in June.
Montreal-based Bombardier has invited executives from the nine airlines that have bought the airplane, and many of the thousands of employees who have worked since 2008 designing, defining and assembling the aircraft.
Bombardier calls the CSeries a game-changer for several reasons: it is powered by a new-technology geared turbofan engine that was designed specifically for the CSeries by Pratt & Whitney, which also developed variants for larger aircraft; it features advanced materials, including carbon composites and lighter metals; together — but mostly because of the engine — these features are designed to cut fuel consumption by 20 per cent, noise by 40 per cent and total operating costs for airlines by 15 per cent. The aircraft’s expected better economy is a critical selling point for Bombardier, but airlines have been slow to take the bait. Bombardier has snagged 177 firm orders in five years, as well as 288 less firm commitments.
Aviation watchers, though, say the first flight is a milestone that spurs airlines to get serious about buying a new aircraft. The earlier an airline buys, the greater the discounts and other incentives, but as the drawing-board “paper airplane” becomes real after the inaugural flight, Bombardier will start charging more for the CSeries in stages as the test-flight program keeps ticking items off the to-do checklist.
Air Canada, in fact, could announce this year or next that it will buy CSeries aircraft as it starts replacing its 100-plane narrow-body fleet.
Original Article: http://www.montrealgazette.com
Wednesday, September 11, 2013
Alaska Airlines unveils new Q400 turboprop plane
FAIRBANKS — Alaska Airlines took another step toward the Bombardier Q400 era in Fairbanks on Monday, when the company brought one of the twin-engine turboprop planes to town for a tour by employees, board members and the media.
Starting in March, the 76-seat Q400 will replace Boeing 737 jets on most of the carrier’s Anchorage-Fairbanks routes. The Q400, which will be operated by Alaska’s sister company, Horizon Air, is projected to save money by slashing fuel costs and adding more route flexibility with eight daily round-trip flights. A single daily 737 flight will remain on the route.
Inside a hangar at Fairbanks International Airport, a Q400 was unveiled for visitors on Monday afternoon, as employees handed out glossy brochures and visitors wandered the aisle or sat in the co-pilot’s chair.
Alaska Airlines plans to add three Q400s to its fleet this fall, along with 30 flight attendants and 30 pilots based in Anchorage to operate the planes. The shift away from costlier 737s is expected to slash costs by about 30 percent, said Horizon Air President Glenn Johnson.
“It does come down to the right airplane in the right market,” Johnson said.
The change to the Q400, which was announced in June, was greeted with skepticism by some Alaskans. Accessing the turboprop planes across an icy tarmac was criticized by some, while uncertainty remained about how disabled passengers would get aboard.
Johnson said both issues will be resolved by the time the planes begin service in Fairbanks next year. He said a passageway will allow temperature-controlled access to planes. Several options are being explored to accommodate disabled passengers, but no final decision has been made, he said.
“We will make sure customers are warm and safe and dry,” Johnson said.
The cruising speed of a Q400 is 414 mph, according to a fact sheet distributed by Alaska Airlines, which is 88 mph less than a Boeing 737-400. But Johnson said the difference in flight time will be negligible, since the jets spend only a small amount of time at cruising speed on short trips.
The planes, which have been used by Horizon on runs that include Western Canada and the Portland-Seattle routes, are certified for the same temperatures as a 737, Johnson said.
The $30 million Toronto-made aircraft are about 12 feet shorter than a 737-400 and hold roughly half as many passengers. The interior of the plane is noticeably smaller than a 737, with two seats on each side of the aisle, but Horizon officials said the space for a seated passenger is the same as in a larger plane.
Most carry-on baggage will be checked at the gate by the ground crew, then returned to passengers upon landing.
But company officials vowed that the planes won’t represent a downgrade for passengers. Perry Solmonson, the director of flight standards and training for Horizon Air, said the planes feature new technologies that allow them to better avoid winter storms and dampen vibrations. The cabins are fitted with 70 microphones, which record cabin noise to project sound-canceling frequencies to offset it, he said. Two flight attendants will be stationed on each route.
“You always wish you had your dad’s keys to the hot rod,” Solmonson said, gesturing to the plane behind him. “This is that.”
In a second-quarter conference call, Alaska Airlines’ vice president of planning and revenue management Andrew Harrison said the Q400 additions to Alaska will have only a small impact on the company as a whole. Alaska Airlines has a fleet of 128 737s and about 50 Q400s.
But Johnson said once the use of the planes reaches “a critical mass,” the shift should ultimately allow the company to pass savings onto customers in Alaska.
“That should help us as we move forward to bring lower fares to the state,” Johnson said.
Story, Photos, Video and Comments/Reaction: http://www.newsminer.com
Related: Alaska Air promises warm boarding on smaller planes in Fairbanks
Monday, August 05, 2013
Gulfstream overtakes Bombardier in value of business aircraft shipped in Q2
MONTREAL -- A surge in business aircraft shipments helped Gulfstream Aerospace Corp. to overtake Bombardier as the world's leading business jet manufacturer in terms of value in the second quarter, according to the General Aviation Manufacturers Association.
The U.S.-based manufacturer shipped 36 aircraft worth US$1.83 billion in the quarter, compared to 45 planes valued at US$1.59 billion for Bombardier. The value of Gulfstream's shipments doubled from a year earlier when it delivered 21 aircraft. Bombardier shipped one less aircraft this year but the value of planes delivered increased by US$274 million or nearly 18 percent.
Halfway through the year, the value of Gulfstream's aircraft shipments was 7.5 per cent greater than its Canadian rival.
Bombardier shipped 14 Global 5000/600, 11 Challenger 605, 16 Challenger 300 and four Learjet 60XR during the quarter. Gulfstream delivered 30 of its 450/550/650 planes and six smaller 150/280 aircraft.
Overall, the industry association said total worldwide airplane shipments rose 8.9 per cent in the first half of 2013 as billings of various smaller aircraft reached US$10.4 billion, up 26.4 percent from the prior year. It marked the first time that six-month revenues surpassed US$10 billion since 2008.
Shipments of single, twin and piston-engine airplanes increased, but industry business jet deliveries decreased 4.1 percent to 283 planes, from 295 a year ago.
"We are encouraged to see a strong increase in billings this quarter, but the mixed results in shipments -- and the differences in performance among sectors -- demonstrate that general aviation airplane manufacturers still face some strong headwinds as the global economy recovers," stated association president Pete Bunce.
Montreal-based Bombardier shipped 179 aircraft valued at US$5.8 billion in 2012, compared to 94 aircraft valued at US$4.1 billion by Gulfstream.
Read more: http://www.ctvnews.ca
The U.S.-based manufacturer shipped 36 aircraft worth US$1.83 billion in the quarter, compared to 45 planes valued at US$1.59 billion for Bombardier. The value of Gulfstream's shipments doubled from a year earlier when it delivered 21 aircraft. Bombardier shipped one less aircraft this year but the value of planes delivered increased by US$274 million or nearly 18 percent.
Halfway through the year, the value of Gulfstream's aircraft shipments was 7.5 per cent greater than its Canadian rival.
Bombardier shipped 14 Global 5000/600, 11 Challenger 605, 16 Challenger 300 and four Learjet 60XR during the quarter. Gulfstream delivered 30 of its 450/550/650 planes and six smaller 150/280 aircraft.
Overall, the industry association said total worldwide airplane shipments rose 8.9 per cent in the first half of 2013 as billings of various smaller aircraft reached US$10.4 billion, up 26.4 percent from the prior year. It marked the first time that six-month revenues surpassed US$10 billion since 2008.
Shipments of single, twin and piston-engine airplanes increased, but industry business jet deliveries decreased 4.1 percent to 283 planes, from 295 a year ago.
"We are encouraged to see a strong increase in billings this quarter, but the mixed results in shipments -- and the differences in performance among sectors -- demonstrate that general aviation airplane manufacturers still face some strong headwinds as the global economy recovers," stated association president Pete Bunce.
Montreal-based Bombardier shipped 179 aircraft valued at US$5.8 billion in 2012, compared to 94 aircraft valued at US$4.1 billion by Gulfstream.
Read more: http://www.ctvnews.ca
Tuesday, July 16, 2013
SpiceJet phases out expats on falling rupee
NEW DELHI: The falling
rupee has made airlines act in an area where they have dragged their
feet for years - phasing out expat pilots. Low cost carrier SpiceJet has
brought down its number of expat pilots, all of whom are commanders,
from over 100 a year ago to just 25 now. With an expat commander getting
almost three times more than the average Indian commander's monthly pay
of Rs 5 lakh, the airline is looking at saving Rs 90 crore per annum.
Even the remaining 25 expat commanders are set to be eased out by the end of this calendar year. Airline sources said the expats are now only for the Bombardier Q-400 aircraft, as being a new plane in India, there are not enough desi pilots for it. "The Boeing 737 fleet is being operated fully by Indian pilots for the past three months. We are now the only airline in India whose mainstay fleet is operated only by Indian pilots," said the source. Airlines spend more on expat pilots for mainly three reasons: They have to be paid in dollars apart from being provided with accommodation here and free return ticket to their home countries every few months. "We were trying to phase out expats as per the aviation regulator's guidelines but the rupee's fall made us expedite the process. We did that by speeding up the training process of our pilots," said sources.
All Indian airlines have a significant number of expat pilots despite the fact that thousands of commercial pilot license holders remain without a job even after spending up to Rs 30 lakh for training.
Source: http://timesofindia.indiatimes.com
Even the remaining 25 expat commanders are set to be eased out by the end of this calendar year. Airline sources said the expats are now only for the Bombardier Q-400 aircraft, as being a new plane in India, there are not enough desi pilots for it. "The Boeing 737 fleet is being operated fully by Indian pilots for the past three months. We are now the only airline in India whose mainstay fleet is operated only by Indian pilots," said the source. Airlines spend more on expat pilots for mainly three reasons: They have to be paid in dollars apart from being provided with accommodation here and free return ticket to their home countries every few months. "We were trying to phase out expats as per the aviation regulator's guidelines but the rupee's fall made us expedite the process. We did that by speeding up the training process of our pilots," said sources.
All Indian airlines have a significant number of expat pilots despite the fact that thousands of commercial pilot license holders remain without a job even after spending up to Rs 30 lakh for training.
Source: http://timesofindia.indiatimes.com
Monday, July 15, 2013
Bombardier's new hub takes off
Planemaker Bombardier, which has a large operation in Belfast, has opened a new regional support office and parts depot in Johannesburg, South Africa.
More than 240 Bombardier business and commercial jets are based in Africa.
Bombardier Aerospace announced in June that Lagos-based Arik Air has signed a firm contract to acquire three CRJ1000 NextGen aircraft and four Q400 NextGen turboprop airliners.
Based on the list price of the CRJ1000 NextGen and Q400 NextGen turboprop aircraft, the contract is valued at approximately £189m. Arik Air currently operates four CRJ900 aircraft and two Q400 NextGen aircraft.
Bombardier's Belfast plant is responsible for the design and manufacture of a range of parts for the planes, including fuselages, engine nacelles and other components.
Bombardier now has five regional support offices and 11 parts facilities across the world.
The agreement which is expected to take effect by late August, will see Ethiopian Airlines provide maintenance services for Bombardier's growing fleet of Q400 and Q400 NextGen turboprop aircraft in Africa.
Earlier this year, Bombardier Aerospace began to transfer component work on its regional jets to a temporary plant in Morocco.
The employees will initially make flaps and ailerons, a part of the wing of the CRJ jet, work that was previously done in Northern Ireland.
The transfer of the package to Morocco was aimed at freeing up floor space for production of wings for the new CSeries craft in Belfast, which were designed, invented and are being built in the city. The first CSeries test flight is expected to take place at the end of the month.
Source: http://www.belfasttelegraph.co.uk
More than 240 Bombardier business and commercial jets are based in Africa.
Bombardier Aerospace announced in June that Lagos-based Arik Air has signed a firm contract to acquire three CRJ1000 NextGen aircraft and four Q400 NextGen turboprop airliners.
Based on the list price of the CRJ1000 NextGen and Q400 NextGen turboprop aircraft, the contract is valued at approximately £189m. Arik Air currently operates four CRJ900 aircraft and two Q400 NextGen aircraft.
Bombardier's Belfast plant is responsible for the design and manufacture of a range of parts for the planes, including fuselages, engine nacelles and other components.
Bombardier now has five regional support offices and 11 parts facilities across the world.
The agreement which is expected to take effect by late August, will see Ethiopian Airlines provide maintenance services for Bombardier's growing fleet of Q400 and Q400 NextGen turboprop aircraft in Africa.
Earlier this year, Bombardier Aerospace began to transfer component work on its regional jets to a temporary plant in Morocco.
The employees will initially make flaps and ailerons, a part of the wing of the CRJ jet, work that was previously done in Northern Ireland.
The transfer of the package to Morocco was aimed at freeing up floor space for production of wings for the new CSeries craft in Belfast, which were designed, invented and are being built in the city. The first CSeries test flight is expected to take place at the end of the month.
Source: http://www.belfasttelegraph.co.uk
Sunday, June 16, 2013
CRJ1000 NextGen aircraft's Ferry Flight from Mirabel to the Paris Air Show
Published on Jun 16, 2013
CRJ1000 NextGen aircraft's ferry flight from Mirabel to the Paris Air Show Le Bourget
Wednesday, June 05, 2013
Alaska Air to serve Fairbanks mostly with turboprop aircraft
Posted: Tuesday, June 4, 2013 5:14 pm
Updated: 7:26 pm, Tue Jun 4, 2013.
By Matt Buxton
FAIRBANKS — Alaska Airlines announced Tuesday that three Bombardier Q400 turboprop planes will mostly replace the Boeing 737 jets that now fly between Fairbanks and Anchorage.
The Q400s, the first propeller planes to be operated under the Alaska Airlines name in Alaska, will increase the number of flights between the state's two biggest cities and allow the 737s to be rerouted to new service between Anchorage and the Lower 48.
Alaska Airlines Regional Vice President Marilyn Romano said passengers won't notice much of a difference when the company switches to the turboprop aircraft in March 2014.
"These planes are really advanced and I think passengers are going to have a very nice travel experience," she said. "Horizon has a lot of these routes in the Lower 48. I've personally have flown on them numerous times."
The Q400s will seat 76 people and have a travel time that's nearly the same as the jet. They'll be operated by 60 Horizon Air employees who will be based out of Anchorage but will be booked and marketed under Alaska Airlines.
The turboprop planes will have outdoor boarding and will be able to be boarded at both the front and rear of the plane.
Fairbanks flyers will still have jet service on the route to Seattle, the seasonal flight to Portland, and on one 737-400 combination cargo and passenger jet flying between Anchorage and Fairbanks.
Romano said the Q400s will cheaper to operate than 737s and offer the airline better flexibility to fill schedule gaps and better cope with lower demand periods.
With flights nine months out, Romano said she couldn't comment on fares but said "our goal by doing this will be to ultimately look at lowering fares in Alaska."
The Q400s will also replace the 737 that flies to Kodiak from Anchorage twice daily seasonally from October through April.
The freed-up 737s will be used for new non-stop routes between Anchorage and Las Vegas and between Anchorage and Phoenix starting in December.
Era Alaska, which currently offers flights on turboprop planes between Anchorage and Fairbanks, did not have a comment on the announcement late Tuesday afternoon.
Story and Comments/Reaction: http://www.newsminer.com
Updated: 7:26 pm, Tue Jun 4, 2013.
By Matt Buxton
FAIRBANKS — Alaska Airlines announced Tuesday that three Bombardier Q400 turboprop planes will mostly replace the Boeing 737 jets that now fly between Fairbanks and Anchorage.
The Q400s, the first propeller planes to be operated under the Alaska Airlines name in Alaska, will increase the number of flights between the state's two biggest cities and allow the 737s to be rerouted to new service between Anchorage and the Lower 48.
Alaska Airlines Regional Vice President Marilyn Romano said passengers won't notice much of a difference when the company switches to the turboprop aircraft in March 2014.
"These planes are really advanced and I think passengers are going to have a very nice travel experience," she said. "Horizon has a lot of these routes in the Lower 48. I've personally have flown on them numerous times."
The Q400s will seat 76 people and have a travel time that's nearly the same as the jet. They'll be operated by 60 Horizon Air employees who will be based out of Anchorage but will be booked and marketed under Alaska Airlines.
The turboprop planes will have outdoor boarding and will be able to be boarded at both the front and rear of the plane.
Fairbanks flyers will still have jet service on the route to Seattle, the seasonal flight to Portland, and on one 737-400 combination cargo and passenger jet flying between Anchorage and Fairbanks.
Romano said the Q400s will cheaper to operate than 737s and offer the airline better flexibility to fill schedule gaps and better cope with lower demand periods.
With flights nine months out, Romano said she couldn't comment on fares but said "our goal by doing this will be to ultimately look at lowering fares in Alaska."
The Q400s will also replace the 737 that flies to Kodiak from Anchorage twice daily seasonally from October through April.
The freed-up 737s will be used for new non-stop routes between Anchorage and Las Vegas and between Anchorage and Phoenix starting in December.
Era Alaska, which currently offers flights on turboprop planes between Anchorage and Fairbanks, did not have a comment on the announcement late Tuesday afternoon.
Story and Comments/Reaction: http://www.newsminer.com
Saturday, March 23, 2013
Bombardier CSeries will miss Paris Air Show: Plane maker wants to finish testing aircraft before jetliner's first flight
Bombardier Inc. will forgo displaying its CSeries at the Paris Air Show in June in order to finish testing before the jetliner's first flight the same month, Chief Executive Officer Pierre Beaudoin said.
The world's third-largest plane maker reiterated its commitment to that timetable in a presentation to investors Thursday in New York. The goal is already six months later than Bombardier originally planned, a delay the company attributed to unspecified issues with suppliers.
"We plan to fly in June, but to go to an air show with an experimental airplane would take at least a month away from our flight-test program because we'd have to prepare it to go," Beaudoin said in an interview at Bloomberg headquarters in New York.
"That's not the kind of expense that makes sense for investors in Bombardier."
The air show, held at Paris-Le Bourget Airport near the French capital, is the year's largest aviation and aerospace industry trade event. Customers such as airlines and lessors ordered more than 1,400 aircraft when it was last held in 2011.
The CSeries, with a $3.4-billion development program, will be Bombardier's largest jet, capable of seating as many as 160 people and competing with the smallest jets produced by Airbus SAS and Boeing Co. The first flight-test craft was shown to reporters and investors two weeks ago at the company's Mirabel plant.
"The notion of flying across the Atlantic just to showcase it didn't make much sense," Walter Spracklin, an analyst at RBC Capital Markets in Toronto, said in a telephone interview.
"By the time of the air show, they will have just gotten the aircraft in the air, if that."
The CSeries isn't the only new jet that won't be making an appearance at the air show. Airbus's new A350 wide-body plane likewise won't make its first flight by then, Thomas Enders, CEO of Airbus parent European Aeronautic, Defence & Space Co., said two weeks ago.
"A better assessment is probably summer, July or August," Enders told reporters at a briefing in New York on March 7.
Beaudoin reiterated Thursday Bombardier's expectation that the CSeries will contribute $5 billion to $8 billion annually in new revenue starting in 2018.
Altogether, the Montreal-based manufacturer said new products are expected to yield additional sales of as much as $16 billion - almost doubling its 2012 revenue of $16.8 billion.
Bombardier has racked up 180 firm orders for the CSeries so far, and the company is on track to meet a goal of 300 by the time the plane enters service in mid-2014, the CEO said.
The CSeries will cost about 15 per cent less to operate and burn about 20 per cent less fuel than existing competitors, Bombardier has said.
The plane will feature composite materials and the new geared turbofan engine from United Technologies Corp.'s Pratt & Whitney.
The smaller CS100 model, with about 100 to 125 seats, sells for a list price of $62 million, while the CS300, which will carry 135 to 160 people, sells for $71 million, though airlines typically negotiate discounts.
"When you sell before the first flight, the customers want discounts because they're taking a risk, and there's only so much discount we're willing to give," Beaudoin said.
"The first people who come to the CSeries are obviously getting a better price, but at some point, we have to say it's enough, and then we'll sell on the demonstrated merits of the product."
Bombardier expects setting prices to remain "challenging" for "probably another year or two," Guy Hachey, president of Bombardier's aerospace unit, told investors at the presentation.
As the company moves forward with the CSeries, Airbus and Boeing are developing reworked versions of their own narrow-body planes, the 737 Max and the A320neo, which will be powered by more fuel-efficient engines.
Bombardier said last year it expects that 6,900 aircraft seating 100 to 149 people will be delivered globally between 2012 and 2031.
Besides the 180 firm orders, Bombardier also has commitments for at least 200 CSeries jetliners.
"We know an airplane will have a long life and better residual value if it has wide distribution of its customers across the world, and many customers," Beaudoin said.
"So it's important for us to get landmark names in terms of airlines, but also to get many airlines in different countries."
Delivery slots for the CSeries are sold out for 2014 and 2015 and "almost" sold out for 2016, Hachey said.
Source: http://www.montrealgazette.com
The world's third-largest plane maker reiterated its commitment to that timetable in a presentation to investors Thursday in New York. The goal is already six months later than Bombardier originally planned, a delay the company attributed to unspecified issues with suppliers.
"We plan to fly in June, but to go to an air show with an experimental airplane would take at least a month away from our flight-test program because we'd have to prepare it to go," Beaudoin said in an interview at Bloomberg headquarters in New York.
"That's not the kind of expense that makes sense for investors in Bombardier."
The air show, held at Paris-Le Bourget Airport near the French capital, is the year's largest aviation and aerospace industry trade event. Customers such as airlines and lessors ordered more than 1,400 aircraft when it was last held in 2011.
The CSeries, with a $3.4-billion development program, will be Bombardier's largest jet, capable of seating as many as 160 people and competing with the smallest jets produced by Airbus SAS and Boeing Co. The first flight-test craft was shown to reporters and investors two weeks ago at the company's Mirabel plant.
"The notion of flying across the Atlantic just to showcase it didn't make much sense," Walter Spracklin, an analyst at RBC Capital Markets in Toronto, said in a telephone interview.
"By the time of the air show, they will have just gotten the aircraft in the air, if that."
The CSeries isn't the only new jet that won't be making an appearance at the air show. Airbus's new A350 wide-body plane likewise won't make its first flight by then, Thomas Enders, CEO of Airbus parent European Aeronautic, Defence & Space Co., said two weeks ago.
"A better assessment is probably summer, July or August," Enders told reporters at a briefing in New York on March 7.
Beaudoin reiterated Thursday Bombardier's expectation that the CSeries will contribute $5 billion to $8 billion annually in new revenue starting in 2018.
Altogether, the Montreal-based manufacturer said new products are expected to yield additional sales of as much as $16 billion - almost doubling its 2012 revenue of $16.8 billion.
Bombardier has racked up 180 firm orders for the CSeries so far, and the company is on track to meet a goal of 300 by the time the plane enters service in mid-2014, the CEO said.
The CSeries will cost about 15 per cent less to operate and burn about 20 per cent less fuel than existing competitors, Bombardier has said.
The plane will feature composite materials and the new geared turbofan engine from United Technologies Corp.'s Pratt & Whitney.
The smaller CS100 model, with about 100 to 125 seats, sells for a list price of $62 million, while the CS300, which will carry 135 to 160 people, sells for $71 million, though airlines typically negotiate discounts.
"When you sell before the first flight, the customers want discounts because they're taking a risk, and there's only so much discount we're willing to give," Beaudoin said.
"The first people who come to the CSeries are obviously getting a better price, but at some point, we have to say it's enough, and then we'll sell on the demonstrated merits of the product."
Bombardier expects setting prices to remain "challenging" for "probably another year or two," Guy Hachey, president of Bombardier's aerospace unit, told investors at the presentation.
As the company moves forward with the CSeries, Airbus and Boeing are developing reworked versions of their own narrow-body planes, the 737 Max and the A320neo, which will be powered by more fuel-efficient engines.
Bombardier said last year it expects that 6,900 aircraft seating 100 to 149 people will be delivered globally between 2012 and 2031.
Besides the 180 firm orders, Bombardier also has commitments for at least 200 CSeries jetliners.
"We know an airplane will have a long life and better residual value if it has wide distribution of its customers across the world, and many customers," Beaudoin said.
"So it's important for us to get landmark names in terms of airlines, but also to get many airlines in different countries."
Delivery slots for the CSeries are sold out for 2014 and 2015 and "almost" sold out for 2016, Hachey said.
Source: http://www.montrealgazette.com
Thursday, March 07, 2013
Bombardier unveils high-stakes CSeries jetliner
(Reuters) - Canada's Bombardier Inc took the wraps off its $3.4 billion challenge to industry leaders Boeing and Airbus on Thursday, announcing "solid progress" on the development program for its largest plane to date.
Bombardier's single-aisle CSeries planes, now promised with seating for up to 160 passengers, represent the company's attempt to break into the lower end of a 100- to 200-seat marketplace heavily defended by its U.S. and European rivals.
China and Russia are also preparing to challenge the trans-Atlantic duopoly over the largest segment of the global jet market, valued at $2 trillion at list prices over the next 20 years.
"The CSeries aircraft program is making solid progress, having met a number of key milestones over the last few months," Mike Arcamone, president of Bombardier Commercial Aircraft, said in a statement.
"We are now focusing on three key areas that will lead to our safety-of-flight permit: static airframe testing, building of flight test vehicles and on-the-ground testing."
Bombardier, based in Montreal, is the world's fourth-largest plane maker, with a stable that includes regional jets and propeller planes as well as a range of executive aircraft.
It lifted a large screen at the end of a glitzy slide presentation to show off the new plane to analysts and reporters at its Mirabel facility near Montreal, and said it was transitioning to flight testing ahead of a first flight scheduled by the end of June.
Bathed in blue light, the white and gray jet had a red and white nose, its two Pratt & Whitney engines spinning gently.
"It's not a paper airplane, it's a real airplane," Arcamone said. It's not a re-engined aircraft we are putting into the market ... I can tell you we are a very serious contender."
At list prices, the 110-seat CS100 costs $62 million and the 130-seat CS300 costs $71 million. In contrast, the Boeing 737 MAX costs $82 million and Airbus' A319 NEO costs $88.8 million.
Bombardier on Thursday said it would also offer a CS300 with an option for up to 160 seats, either as an initial order or as a retrofitted plane.
"The CSeries aircraft is a game-changer in a changing economic environment, and following keen customer interest and market trends, we have enhanced the productivity of the CS300 aircraft further by offering the extra capacity seating option," Arcamone said.
A company statement said Bombardier had 148 firm orders for the aircraft as of Dec. 31, but Arcamone said that number was now "close to 180".
A big buyer is Germany's Deutsche Lufthansa, the first airline to put in a firm order.
That compares with 1,064 orders for Boeing's competing 737 MAX and more than 1,440 for Airbus' NEO family, although only a small fraction of those orders is for the smaller models that compete directly with the CSeries.
Bombardier's slowly growing order book has raised concerns that the company does not have the appetite to lure customers with deep discounts, as Boeing and Airbus do, or provide financing offers and walk-away rights.
Bombardier Chief Executive Pierre Beaudoin has said he does not need to provide discounts, arguing the CSeries offers meaningful competitive advantages to airlines.
The CSeries claims a 15 percent cash operating cost advantage and 20 percent fuel burn advantage over the Boeing and Airbus models. Its airframe is lighter.
It uses conventional batteries rather than the lithium ion batteries that have caused so many troubles for Boeing's Dreamliner plane. "We are very glad about that decision," Arcamone said.
Airbus and Boeing have moved to defend their strong market shares by adding fuel-saving engines similar to those on the CSeries to their own best-selling models.
That is a draw for airlines preferring to stick with existing suppliers, whose planes pilots are already certified to fly and where spare parts are plentiful. Numerous repair stations are already qualified to service the competing jets.
Bombardier, which says it expects orders for the CSeries to pick up once the aircraft has made its maiden flight, has targeted 300 firm orders by mid-2014, when the jet enters service. It is seen as an ambitious launch schedule, with little room for error.
Source: http://www.reuters.com
Bombardier's single-aisle CSeries planes, now promised with seating for up to 160 passengers, represent the company's attempt to break into the lower end of a 100- to 200-seat marketplace heavily defended by its U.S. and European rivals.
China and Russia are also preparing to challenge the trans-Atlantic duopoly over the largest segment of the global jet market, valued at $2 trillion at list prices over the next 20 years.
"The CSeries aircraft program is making solid progress, having met a number of key milestones over the last few months," Mike Arcamone, president of Bombardier Commercial Aircraft, said in a statement.
"We are now focusing on three key areas that will lead to our safety-of-flight permit: static airframe testing, building of flight test vehicles and on-the-ground testing."
Bombardier, based in Montreal, is the world's fourth-largest plane maker, with a stable that includes regional jets and propeller planes as well as a range of executive aircraft.
It lifted a large screen at the end of a glitzy slide presentation to show off the new plane to analysts and reporters at its Mirabel facility near Montreal, and said it was transitioning to flight testing ahead of a first flight scheduled by the end of June.
Bathed in blue light, the white and gray jet had a red and white nose, its two Pratt & Whitney engines spinning gently.
"It's not a paper airplane, it's a real airplane," Arcamone said. It's not a re-engined aircraft we are putting into the market ... I can tell you we are a very serious contender."
At list prices, the 110-seat CS100 costs $62 million and the 130-seat CS300 costs $71 million. In contrast, the Boeing 737 MAX costs $82 million and Airbus' A319 NEO costs $88.8 million.
Bombardier on Thursday said it would also offer a CS300 with an option for up to 160 seats, either as an initial order or as a retrofitted plane.
"The CSeries aircraft is a game-changer in a changing economic environment, and following keen customer interest and market trends, we have enhanced the productivity of the CS300 aircraft further by offering the extra capacity seating option," Arcamone said.
A company statement said Bombardier had 148 firm orders for the aircraft as of Dec. 31, but Arcamone said that number was now "close to 180".
A big buyer is Germany's Deutsche Lufthansa, the first airline to put in a firm order.
That compares with 1,064 orders for Boeing's competing 737 MAX and more than 1,440 for Airbus' NEO family, although only a small fraction of those orders is for the smaller models that compete directly with the CSeries.
Bombardier's slowly growing order book has raised concerns that the company does not have the appetite to lure customers with deep discounts, as Boeing and Airbus do, or provide financing offers and walk-away rights.
Bombardier Chief Executive Pierre Beaudoin has said he does not need to provide discounts, arguing the CSeries offers meaningful competitive advantages to airlines.
The CSeries claims a 15 percent cash operating cost advantage and 20 percent fuel burn advantage over the Boeing and Airbus models. Its airframe is lighter.
It uses conventional batteries rather than the lithium ion batteries that have caused so many troubles for Boeing's Dreamliner plane. "We are very glad about that decision," Arcamone said.
Airbus and Boeing have moved to defend their strong market shares by adding fuel-saving engines similar to those on the CSeries to their own best-selling models.
That is a draw for airlines preferring to stick with existing suppliers, whose planes pilots are already certified to fly and where spare parts are plentiful. Numerous repair stations are already qualified to service the competing jets.
Bombardier, which says it expects orders for the CSeries to pick up once the aircraft has made its maiden flight, has targeted 300 firm orders by mid-2014, when the jet enters service. It is seen as an ambitious launch schedule, with little room for error.
Source: http://www.reuters.com
Sunday, March 03, 2013
No-frill carriers mull buying smaller aircraft
New Delhi: With the government focusing more on improving regional connectivity, no-frill carriers have started thinking of buying smaller aircraft with IndiGo even evaluating launching a regional subsidiary, a leading aviation consultancy firm has said.
"IndiGo is also evaluating the possibility of placing an ATR (turboprop aircraft) order to establish a regional subsidiary," the Centre for Asia Pacific Aviation (CAPA) said in a latest report.
While all major no-frill carriers -- IndiGo, SpiceJet and GoAir -- have either Boeing or Airbus narrow-body aircraft fleet, all of them have started considering acquiring smaller aircraft like turboprop ATRs or Bombardier's Q400s.
"SpiceJet remains undecided on whether to exercise its options for a further 15 Q400s, however CAPA expects that the carrier will increase its regional fleet in due course," the study said, adding that GoAir "is also considering inducting turboprops to serve Tier-II and Tier-III cities".
While IndiGo now has around 30 Airbus A-320s from its 2005 order still to be delivered, it will start to take delivery of the first of its 150 A-320neos, as well as 30 A-320s from 2016-17.
SpiceJet has 30 Boeing 737-800s on order with deliveries set to commence from next year, the CAPA report said, adding that a further narrow-body order "may be finalized by early April after a new investor comes on board".
The B-737 MAX was "the most likely equipment" for SpiceJet, it further said.
Similarly, GoAir would see its fleet size increase from 13 to around 20 aircraft over the next couple of years, to be followed by the first of its 72 A-320neos on order from 2017.
CAPA said several of Air India's "small" regional fleet, comprising a mix of regional jets and turboprops, are dedicated to operations in the Northeast and there was "no clear market proposition. Against this backdrop of capacity stagnation, Air India's competitors are set to expand aggressively," it said.
Source: http://economictimes.indiatimes.com
"IndiGo is also evaluating the possibility of placing an ATR (turboprop aircraft) order to establish a regional subsidiary," the Centre for Asia Pacific Aviation (CAPA) said in a latest report.
While all major no-frill carriers -- IndiGo, SpiceJet and GoAir -- have either Boeing or Airbus narrow-body aircraft fleet, all of them have started considering acquiring smaller aircraft like turboprop ATRs or Bombardier's Q400s.
"SpiceJet remains undecided on whether to exercise its options for a further 15 Q400s, however CAPA expects that the carrier will increase its regional fleet in due course," the study said, adding that GoAir "is also considering inducting turboprops to serve Tier-II and Tier-III cities".
While IndiGo now has around 30 Airbus A-320s from its 2005 order still to be delivered, it will start to take delivery of the first of its 150 A-320neos, as well as 30 A-320s from 2016-17.
SpiceJet has 30 Boeing 737-800s on order with deliveries set to commence from next year, the CAPA report said, adding that a further narrow-body order "may be finalized by early April after a new investor comes on board".
The B-737 MAX was "the most likely equipment" for SpiceJet, it further said.
Similarly, GoAir would see its fleet size increase from 13 to around 20 aircraft over the next couple of years, to be followed by the first of its 72 A-320neos on order from 2017.
CAPA said several of Air India's "small" regional fleet, comprising a mix of regional jets and turboprops, are dedicated to operations in the Northeast and there was "no clear market proposition. Against this backdrop of capacity stagnation, Air India's competitors are set to expand aggressively," it said.
Source: http://economictimes.indiatimes.com
Thursday, January 31, 2013
CommutAir Bombardier Dash 8: Aircraft makes emergency landing at Greater Binghamton Airport/Edwin A Link Field (KBGM), Johnson City, New York
BINGHAMTON — A maintenance flight with two people on board had to be aborted shortly after takeoff this afternoon and returned to Greater Binghamton Airport for an emergency landing, an aviation official said.
The CommutAir plane took off around 1 p.m. and turned around after the pilot reported a hydraulic problem, landing without incident at the airport where emergency crews had responded as a precaution, said Carl Beardsley Jr., Broome County commissioner of aviation.
The Bombardier Dash 8 had been scheduled to transport passengers earlier in the morning, but that flight was canceled when the hydraulic problem was identified during the routine pre-flight maintenance check, Beardsley said. He was unable to provide further details about the canceled flight.
CommutAir had a maintenance crew work on the plane and cleared the afternoon flight, which was headed to Washington, D.C. for further repair work, Beardsley said, noting just the pilot and co-pilot were aboard when they discovered the hydraulic problem had not been adequately fixed and turned around.
Beardsley was unable to provide how far the plane traveled, saying it never posed a risk to populated areas. He noted the decision to clear the flight is handled internally by CommutAir, with the pilot granting the final approval.
http://www.pressconnects.com
The CommutAir plane took off around 1 p.m. and turned around after the pilot reported a hydraulic problem, landing without incident at the airport where emergency crews had responded as a precaution, said Carl Beardsley Jr., Broome County commissioner of aviation.
The Bombardier Dash 8 had been scheduled to transport passengers earlier in the morning, but that flight was canceled when the hydraulic problem was identified during the routine pre-flight maintenance check, Beardsley said. He was unable to provide further details about the canceled flight.
CommutAir had a maintenance crew work on the plane and cleared the afternoon flight, which was headed to Washington, D.C. for further repair work, Beardsley said, noting just the pilot and co-pilot were aboard when they discovered the hydraulic problem had not been adequately fixed and turned around.
Beardsley was unable to provide how far the plane traveled, saying it never posed a risk to populated areas. He noted the decision to clear the flight is handled internally by CommutAir, with the pilot granting the final approval.
http://www.pressconnects.com
Sunday, December 30, 2012
N507LX Replublic Airlines Flight 4914 Bombardier DHC-8: Aircraft on departure, an access panel separated onto the runway, aircraft returned and landed without incident, no injuries - Kansas City, Missouri
IDENTIFICATION
Regis#: 507LX Make/Model: DH8D Description: DHC-8-400 DASH 8
Date: 12/30/2012 Time: 1657
Event Type: Incident Highest Injury: None Mid Air: N Missing: N
Damage: Minor
LOCATION
City: KANSAS CITY State: MO Country: US
DESCRIPTION
N507LX REPUBLIC AIRLINES FLIGHT4914 BOMBARDIER DHC-8 AIRCRAFT ON DEPARTURE,
AN ACCESS PANEL SEPARATED ONTO THE RUNWAY, AIRCRAFT RETURNED AND LANDED
WITHOUT INCIDENT, NO INJURIES, KANSAS CITY, MO
INJURY DATA Total Fatal: 0
# Crew: 0 Fat: 0 Ser: 0 Min: 0 Unk:
# Pass: 0 Fat: 0 Ser: 0 Min: 0 Unk:
# Grnd: Fat: 0 Ser: 0 Min: 0 Unk:
OTHER DATA
Activity: Business Phase: Take-off Operation: Air Carrier
FAA FSDO: KANSAS CITY, MO (CE05) Entry date: 12/31/2012
A passenger on board the flight sent FOX 4 this photo.
KANSAS CITY, Mo. — A United flight bound for Denver Sunday morning from Kansas City International Airport had to turn around after an engine panel fell off the plane.
Flight 4914 left KCI around 9:44 a.m. and had to circle the airfield for approximately 22 minutes before landing again.
No one was hurt and the plane was able to make a safe landing.
No other information was immediately available. FOX 4 has reached out to United Airlines and KCI for more details.
Saturday, November 10, 2012
Analysis: Delay on Bombardier's new jet heightens price pressure
By Susan Taylor and Nicole Mordant
TORONTO/VANCOUVER | Sat Nov 10, 2012 10:53am EST
(Reuters) - Bombardier Inc's decision this week to delay the maiden flight of its new C-Series jetliner raised questions about the company's ability to deliver the jet on time - and the amount it may have to discount the price to boost sales.
Tripped up by supplier delays, Bombardier pushed back the inaugural flight by six months, a blow that adds to a host of challenges the world's No. 3 planemaker faces in cracking the narrow body jetliner market dominated by Boeing Co and Airbus.
The C-Series promised market-beating performance when it was launched a few years ago, due to new engine technology and a lighter airframe. But Boeing and Airbus have since launched similarly advanced planes based on their best-selling 737 and A320 models, eclipsing much of Bombardier's advantage.
The Montreal-based plane and train maker had hoped the C-Series would spark sales growth at its commercial plane unit, compensating for sputtering demand for its small regional jets and corporate Learjets.
Bombardier is very confident in its revised timetable, company spokeswoman Marianella de la Barrera said.
But with delay concerns hanging over its biggest jet yet, Bombardier faces an even tougher sales job, analysts say.
To overcome airlines' reluctance to place firm orders for an unproven aircraft that could be delivered late, Bombardier will have to offer bigger discounts, financing, residual value guarantees and walk-away rights, said aerospace analyst Richard Aboulafia, of Virginia-based Teal Group.
"The cost of developing a jet is just the start," Aboulafia said. "Now that they're in, they need to put an awful lot more on the table."
Without those incentives, "They brought a creme brulee torch to a flame thrower fight," he said.
WON'T "GIVE AWAY" PLANES
Bombardier's jet already is significantly less expensive than comparable Boeing and Airbus planes. At list prices, the 110-seat CS100 costs $62 million. The 130-seat CS300 costs $71 million. In contrast, the Boeing 737 MAX 7 costs $82 million and Airbus's A319 NEO costs $88.8 at list prices.
Bombardier Chief Executive Pierre Beaudoin has been adamant that he will not "give away" the plane to ensure a fat order book, and says the company has a "good level of orders." In addition to the 138 firm orders, Bombardier also has options or letters of intent for another 214 jets.
By comparison, Boeing's 737 MAX has 938 firm orders, and Airbus' NEO family has 1449, though only a small fraction of those orders are for the smaller models that compete directly with the C-Series.
"What I said before, and I remain firm, is we don't need to go and give prices that we will regret when we deliver the airplane," Beaudoin said on a conference call this week.
"This is a good airplane, with a huge competitive advantage and we can get the value for it, so I remain firm on that."
Still, the plane's order flow has slowed. In 2009, the jetliner drew 50 orders, followed by 40 in 2010 and 43 in 2011. This year, just five orders have come in.
The industry has been watching Bombardier pricing closely since it snatched a provisional order for 20 planes for AirBaltic in June. That order had been widely seen as all but certain to go to Airbus. Industry experts say Bombardier has been more aggressive with pricing since the summer.
Earlier this year, Steven Udvar-Hazy, CEO of Air Lease Corp (AL.N), said Bombardier needed to make "some sacrifices short term for the long-term benefit of the program."
"I think they really need to be aggressive. ... Without that, the program is not going to get the momentum it needs to be competitive with Boeing and Airbus."
Some say all the C-Series needs is one order from a big airline, and that it should go for it at any cost.
"I think they need to identify a blue-chip customer, like a Delta (DAL.N), and really go ahead and cut an aggressive deal," said Scott Hamilton, managing director of aviation consulting company Leeham Co.
DELIVERY SCHEDULE IN QUESTION
The next test for Bombardier's pricing will come between the first flight, now set for the end of June 2013, and the start of commercial service a year later, said Robert Kokonis, managing director of Toronto-based airline consultancy AirTrav Inc.
The company has said it wants to have 300 firm orders when the jet enters service.
"If not much happens between (first flight) and the first customer delivery, the sales force would have to get more aggressive," he said.
Some also question whether Bombardier has the financial strength to offer the kind of incentives needed to book more sales. And if the first flight is delayed again, analysts are concerned that Bombardier may lack the resources to keep shouldering the large, expensive project.
"At that point in time, I think people will start having major considerations about cash flow issues. People will look at what's going to happen to Bombardier. How will they sustain $2 billion of spend year after year after year?" said Stonecap Securities analyst Scott Rattee.
Blaming a sluggish economic recovery, Bombardier said this week that cash flow from its aerospace operations won't be enough to fund its $2 billion worth spending, and it will dip into company cash resources for $500 million. The company has about $3.5 billion in short-term capital available.
SURVEY SHOWS BUYERS LIMITED
The C-Series aims to deliver 20 percent fuel-burn savings and 15 percent lower operating costs than current jets, savings that airlines appreciate amid rising fuel costs.
Yet even if the jet performs as promised, arrives on time and carries a bargain price tag it faces other hurdles in taking on Boeing and Airbus that are based on well-known planes.
Airlines are keen to maintain a common fleet to keep a cap on parts and maintenance costs and have pilots certify for and fly the same type of aircraft, said Byron Capital analyst Tom Astle.
A survey of 26 airlines last year found that most were keen on the plane's savings, but just 7 percent said they were likely to place an order in the next five years, said Walter Spracklin, an analyst at RBC Capital Markets who conducted the poll.
"The No. 1 factor holding people back was not price: it was the fleet commonality. There is an expense to an airline introducing a new aircraft in their fleet," Spracklin said.
With its deadline extended, Bombardier is working seven days a week to get the jet finished.
The schedule is extremely ambitious, with little room for error. If the CS100 jet flies in June 2013, as planned, with entry into service by mid-2014, that will be record time.
"I've never seen another company do it in much less than two years," said Astle.
(Reporting by Susan Taylor and Nicole Mordant; Editing by Alwyn Scott and Richard Chang)
TORONTO/VANCOUVER | Sat Nov 10, 2012 10:53am EST
(Reuters) - Bombardier Inc's decision this week to delay the maiden flight of its new C-Series jetliner raised questions about the company's ability to deliver the jet on time - and the amount it may have to discount the price to boost sales.
Tripped up by supplier delays, Bombardier pushed back the inaugural flight by six months, a blow that adds to a host of challenges the world's No. 3 planemaker faces in cracking the narrow body jetliner market dominated by Boeing Co and Airbus.
The C-Series promised market-beating performance when it was launched a few years ago, due to new engine technology and a lighter airframe. But Boeing and Airbus have since launched similarly advanced planes based on their best-selling 737 and A320 models, eclipsing much of Bombardier's advantage.
The Montreal-based plane and train maker had hoped the C-Series would spark sales growth at its commercial plane unit, compensating for sputtering demand for its small regional jets and corporate Learjets.
Bombardier is very confident in its revised timetable, company spokeswoman Marianella de la Barrera said.
But with delay concerns hanging over its biggest jet yet, Bombardier faces an even tougher sales job, analysts say.
To overcome airlines' reluctance to place firm orders for an unproven aircraft that could be delivered late, Bombardier will have to offer bigger discounts, financing, residual value guarantees and walk-away rights, said aerospace analyst Richard Aboulafia, of Virginia-based Teal Group.
"The cost of developing a jet is just the start," Aboulafia said. "Now that they're in, they need to put an awful lot more on the table."
Without those incentives, "They brought a creme brulee torch to a flame thrower fight," he said.
WON'T "GIVE AWAY" PLANES
Bombardier's jet already is significantly less expensive than comparable Boeing and Airbus planes. At list prices, the 110-seat CS100 costs $62 million. The 130-seat CS300 costs $71 million. In contrast, the Boeing 737 MAX 7 costs $82 million and Airbus's A319 NEO costs $88.8 at list prices.
Bombardier Chief Executive Pierre Beaudoin has been adamant that he will not "give away" the plane to ensure a fat order book, and says the company has a "good level of orders." In addition to the 138 firm orders, Bombardier also has options or letters of intent for another 214 jets.
By comparison, Boeing's 737 MAX has 938 firm orders, and Airbus' NEO family has 1449, though only a small fraction of those orders are for the smaller models that compete directly with the C-Series.
"What I said before, and I remain firm, is we don't need to go and give prices that we will regret when we deliver the airplane," Beaudoin said on a conference call this week.
"This is a good airplane, with a huge competitive advantage and we can get the value for it, so I remain firm on that."
Still, the plane's order flow has slowed. In 2009, the jetliner drew 50 orders, followed by 40 in 2010 and 43 in 2011. This year, just five orders have come in.
The industry has been watching Bombardier pricing closely since it snatched a provisional order for 20 planes for AirBaltic in June. That order had been widely seen as all but certain to go to Airbus. Industry experts say Bombardier has been more aggressive with pricing since the summer.
Earlier this year, Steven Udvar-Hazy, CEO of Air Lease Corp (AL.N), said Bombardier needed to make "some sacrifices short term for the long-term benefit of the program."
"I think they really need to be aggressive. ... Without that, the program is not going to get the momentum it needs to be competitive with Boeing and Airbus."
Some say all the C-Series needs is one order from a big airline, and that it should go for it at any cost.
"I think they need to identify a blue-chip customer, like a Delta (DAL.N), and really go ahead and cut an aggressive deal," said Scott Hamilton, managing director of aviation consulting company Leeham Co.
DELIVERY SCHEDULE IN QUESTION
The next test for Bombardier's pricing will come between the first flight, now set for the end of June 2013, and the start of commercial service a year later, said Robert Kokonis, managing director of Toronto-based airline consultancy AirTrav Inc.
The company has said it wants to have 300 firm orders when the jet enters service.
"If not much happens between (first flight) and the first customer delivery, the sales force would have to get more aggressive," he said.
Some also question whether Bombardier has the financial strength to offer the kind of incentives needed to book more sales. And if the first flight is delayed again, analysts are concerned that Bombardier may lack the resources to keep shouldering the large, expensive project.
"At that point in time, I think people will start having major considerations about cash flow issues. People will look at what's going to happen to Bombardier. How will they sustain $2 billion of spend year after year after year?" said Stonecap Securities analyst Scott Rattee.
Blaming a sluggish economic recovery, Bombardier said this week that cash flow from its aerospace operations won't be enough to fund its $2 billion worth spending, and it will dip into company cash resources for $500 million. The company has about $3.5 billion in short-term capital available.
SURVEY SHOWS BUYERS LIMITED
The C-Series aims to deliver 20 percent fuel-burn savings and 15 percent lower operating costs than current jets, savings that airlines appreciate amid rising fuel costs.
Yet even if the jet performs as promised, arrives on time and carries a bargain price tag it faces other hurdles in taking on Boeing and Airbus that are based on well-known planes.
Airlines are keen to maintain a common fleet to keep a cap on parts and maintenance costs and have pilots certify for and fly the same type of aircraft, said Byron Capital analyst Tom Astle.
A survey of 26 airlines last year found that most were keen on the plane's savings, but just 7 percent said they were likely to place an order in the next five years, said Walter Spracklin, an analyst at RBC Capital Markets who conducted the poll.
"The No. 1 factor holding people back was not price: it was the fleet commonality. There is an expense to an airline introducing a new aircraft in their fleet," Spracklin said.
With its deadline extended, Bombardier is working seven days a week to get the jet finished.
The schedule is extremely ambitious, with little room for error. If the CS100 jet flies in June 2013, as planned, with entry into service by mid-2014, that will be record time.
"I've never seen another company do it in much less than two years," said Astle.
(Reporting by Susan Taylor and Nicole Mordant; Editing by Alwyn Scott and Richard Chang)
Monday, October 29, 2012
Manufacturers in race to meet need for speed
For an industry that
sells itself on shaving off time spent in transit, speed is a big deal.
The top speed race between old Cessna and rival US aircraft-maker
Gulfstream has been settled, but velocity addicts are still awaiting
deliveries of the fast jet set.
Cessna’s Citation Ten, which keeps the speed crown currently held by its predecessor Citation X model with a maximum cruise speed increased to Mach 0.935, is on track for certification and deliveries in the second half of 2013, the Kansas company says.
Gulfstream’s speedy G650 ultra-large-cabin, ultra-long-range business jet received its type certificate last month from US aviation regulators, and first deliveries will go to customers before the end of this year. The Georgia-based company has orders for more than 200 of the $64.5m aircraft, with 17 completions expected before January.
The G650 had threatened Cessna with its top speed of Mach 0.925 until the Kansas company hit back. Gulfstream claims instead the title of most advanced flight deck in general aviation, including fly-by-wire controls, visibility-enhancing systems and advanced weather radar.
Ironically, given the focus on safety features, the US National Transportation Safety Board this month increased its criticism of the circumstances that led to a fatal crash during G650 testing at Roswell, New Mexico, in April 2011, citing pressure to keep to a certification schedule. The aircraft-maker says it has, since the accident, “redoubled its efforts to strengthen the safety culture in flight-test and throughout the company”.
The safety benefits from improved navigation, control and vision systems have already cut accident rates across aviation by huge margins – and further improvements are on offer.
Such benefits are also on offer further down the speed chain. I sampled the Honeywell SmartView Synthetic Vision System piloting a rather slower Pilatus PC-12 – maximum cruise speed about 280 knots – around the mountains of Switzerland this year and the improvements in situational awareness were startling. The system made normally challenging steep approaches to tiny strips deep in the Swiss valleys easy, and even simple things, such as super-imposing range lines on to the computer-generated topography displayed to the pilot, took a great deal of guesswork out of flying.
Looking east
Cessna, the world’s largest maker of business jets by volume, could be excused for being a touch more confident than this time last year. The NetJets order in June for up to 150 midsize Citation Latitudes – 25 firm and 125 options – marks a return to ordering products from the Kansas-based company, after a previous big order from NetJets went to Brazilian rival Embraer for its Phenom light jets.
The Latitude is expected to make its first flight in 2014, with certification and first deliveries in 2015. Brad Thress, senior vice-president of the business jets division, says its range of 2,500 nautical miles will be key to its popularity.
The Citation Longitude, with a range of 4,000 nautical miles, is expected also to win interest from newer markets where range is highly prized.
Lower down in the size stakes, the Citation M2, bigger brother of the light jet Mustang, is expected to be certified in the first half of 2013, with deliveries due in the second half of the same year. Cessna says global interest is strong, particularly in markets in Europe and Asia.
Cessna is also pursuing opportunities in China, which it forecasts as being in the top 10 of business jet markets within 13 years. It is on its way to producing the Sovereign and Latitude jets for sale in China, as well as the turboprop Grand Caravan.
Hawker Beechcraft’s Chinese adventure, which ended this month when its planned deal with Superior Aviation Beijing collapsed, shows that China’s promise can be limited. Richard Aboulafia, vice-president for analysis at the Teal Group aerospace consultancy, says co-building does not guarantee market access, and is skeptical about emerging nations’ ability to transform the sector’s fortunes.
But with the US market still waiting for a sight of the approach lights that herald a tidy recovery, failing to look east would be a mistake.
Source: http://www.ft.com
Cessna’s Citation Ten, which keeps the speed crown currently held by its predecessor Citation X model with a maximum cruise speed increased to Mach 0.935, is on track for certification and deliveries in the second half of 2013, the Kansas company says.
Gulfstream’s speedy G650 ultra-large-cabin, ultra-long-range business jet received its type certificate last month from US aviation regulators, and first deliveries will go to customers before the end of this year. The Georgia-based company has orders for more than 200 of the $64.5m aircraft, with 17 completions expected before January.
The G650 had threatened Cessna with its top speed of Mach 0.925 until the Kansas company hit back. Gulfstream claims instead the title of most advanced flight deck in general aviation, including fly-by-wire controls, visibility-enhancing systems and advanced weather radar.
Ironically, given the focus on safety features, the US National Transportation Safety Board this month increased its criticism of the circumstances that led to a fatal crash during G650 testing at Roswell, New Mexico, in April 2011, citing pressure to keep to a certification schedule. The aircraft-maker says it has, since the accident, “redoubled its efforts to strengthen the safety culture in flight-test and throughout the company”.
The safety benefits from improved navigation, control and vision systems have already cut accident rates across aviation by huge margins – and further improvements are on offer.
Such benefits are also on offer further down the speed chain. I sampled the Honeywell SmartView Synthetic Vision System piloting a rather slower Pilatus PC-12 – maximum cruise speed about 280 knots – around the mountains of Switzerland this year and the improvements in situational awareness were startling. The system made normally challenging steep approaches to tiny strips deep in the Swiss valleys easy, and even simple things, such as super-imposing range lines on to the computer-generated topography displayed to the pilot, took a great deal of guesswork out of flying.
Looking east
Cessna, the world’s largest maker of business jets by volume, could be excused for being a touch more confident than this time last year. The NetJets order in June for up to 150 midsize Citation Latitudes – 25 firm and 125 options – marks a return to ordering products from the Kansas-based company, after a previous big order from NetJets went to Brazilian rival Embraer for its Phenom light jets.
The Latitude is expected to make its first flight in 2014, with certification and first deliveries in 2015. Brad Thress, senior vice-president of the business jets division, says its range of 2,500 nautical miles will be key to its popularity.
The Citation Longitude, with a range of 4,000 nautical miles, is expected also to win interest from newer markets where range is highly prized.
Lower down in the size stakes, the Citation M2, bigger brother of the light jet Mustang, is expected to be certified in the first half of 2013, with deliveries due in the second half of the same year. Cessna says global interest is strong, particularly in markets in Europe and Asia.
Cessna is also pursuing opportunities in China, which it forecasts as being in the top 10 of business jet markets within 13 years. It is on its way to producing the Sovereign and Latitude jets for sale in China, as well as the turboprop Grand Caravan.
Hawker Beechcraft’s Chinese adventure, which ended this month when its planned deal with Superior Aviation Beijing collapsed, shows that China’s promise can be limited. Richard Aboulafia, vice-president for analysis at the Teal Group aerospace consultancy, says co-building does not guarantee market access, and is skeptical about emerging nations’ ability to transform the sector’s fortunes.
But with the US market still waiting for a sight of the approach lights that herald a tidy recovery, failing to look east would be a mistake.
Source: http://www.ft.com
Subscribe to:
Posts (Atom)
