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http://www.freelancedirectory.org/?name=Julian.Bray.aviation.comment Julian Bray provides: Opinion, comment, forward thinking speculation, keynote presentations and workshops for corporate organisations on Travel, Cruise & Aviation: conflict zones, terrorist impact, drone (UAV) issues, safety (black boxes, emergencies), airline operations, aviation finance, political implications, and all forms of incident risk. He operated at board level with several airline and aviation groups, including Alitalia, British Island Airways, British Airways, Galileo , British Aerospace, Skyways, former CEO City firm Leadenhall Assoc. Founder CNS City News Service. Director NTN Television News (joint co. with ITV Wales TWW) Debretts People 2017 and in launch edition of PRWeek Black Book. Journalist and Broadcaster. After-dinner speaker and presenter.

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Friday, 29 April 2016

Delta Airlines lifts spirits of Bombardier with a $5.6 billion purchase of 125 new generation CS100 aircraft, as Boeing looks on, and Airbus bags Iran superjumbo deal.






Julian Bray comments: As I revealed  on Share Radio earlier today: In a move that has clearly infuriated Boeing and caused the plane maker to totally rethink future aviation payloads, Boeing is to rejig versions of its 737 max  as the 737 max 7X. The cause of the upset is an unusually smart move by Bombardier, signing up Delta Air Lines,  a firm agreement they say, for the sale and purchase of 75 CS100 aircraft, with options for an additional 50 CS100 aircraft.


Just pause there for a moment. Delta, a major US airline (and United is also said to be looking at the Bombardier offer especially as huge discounts are being dangled before the United directors ...) turning its back on the Boeing Company? Why?


This is the clue. Flexibility!   Delta Air Lines may elect to convert a number of these aircraft into CS300 at a later date. Based on the list price of the CS100 aircraft, the firm order is valued at approximately $5.6 billion US.
“As we reshape our fleet for the future, the innovative onboard experience of the C Series is a perfect complement for the top-notch service provided every day by Delta people,” said Ed Bastian, Delta’s incoming CEO. 
 An excited Fred Cromer, President, Bombardier Commercial Aircraft said: “Welcoming Delta Air Lines to the C Series family of operators, is a watershed moment for our game-changing aircraft.  With this order, the largest in Bombardier's book , Delta is confirmed as the C Series aircraft’s largest customer. Deliveries are scheduled to commence in spring 2018. Its also better news for Bombardier in Belfast, Northern Ireland where substantial job cuts have recently been announced.


So was Boeing caught napping or are they about to launch a major assault on the smaller Bombardier product range? Is it too late? Consider this, the new beefed up version of the 737 [MAX 7X] single aisle would boast 150 seats against 110 to 135 on the Bombardier CSeries100 and the Bombardier CSeries 300.


 Boeing currently offer 126 seats on the smaller variant of the 737 Max. The only problem is that Boeing will not have the new variants  ready until 2019. Boeing also seem to be adopting the General Motors style of operation, rationalising parts and systems,  it may be badged Vauxhall or Opel on the outside but lift the bonnet (Hood) and all the components are all badged GM. The new MAX7X will utilise existing components and pre developed systems taken from the 737 Max 8 (162 seats). A smart move that will clearly cut development  costs and speed delivery. It also means customer already held  inventory can in future be used on several Boeing products. Why on earth did they not think of this before?  Recent management hires with  automotive experience may be the answer but no one is telling...


Meanwhile Airbus is steaming ahead with profits up 15%, breaking even for the first time on its superjumbos. 12 Airbus A380's are part of a £17.4 billion (US$25billion) brokered deal with Iran who are to take some 45 A330 jets . The knock on effect for the UK is good as the wings are UK manufactured then flown to France for bolting onto the fuselage....



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