Page 9 - AAA JUNE - JULY 2017 Online Magazine

SPECIAL REPORT PARIS AIRSHOW

the supply chain. In its Airbus: Q1 preview The big winner in the A350 stable is the -900 market size wise is the A330 / A330neo.
-Beginning of a challenging year in order to variant with a total of 612 orders of which 81 But Bernstein has concerns that the Airbus
reach upside in 2018-19 report it states: “’But, have been delivered. The weak spot has been pitch of it [A330neo] provides most of the
we believe the most important issues on the A350-800 with technically only 6 orders performance of Boeing’s 787, but at a lower
the A350 are getting costs down to planned remaining for Asiana. It is expected these price is not getting the traction. “Although
levels this year and for deliveries to stay will be transferred to the -900 model or the we understand a number of campaigns
on schedule. Management has expressed A330neo. The backlog for the -800 peaked are underway, we have not seen much
confidence that the A350 can reach is goal at 182 in 2008, but has been all but wiped conversion to orders,” a May 15 report states.
of going into the factory at 10/month by the out as most customers have switched to the It expresses concerns that the RR Trent
end of 2017. As part of this effort, Airbus larger -900. Airbus officially dropped the 7000 engine is well behind schedule and the
has indicated plans to make working capital -800 after launching the A330neo at the 2014 A330neo should have had first flight in late
investment in critical part inventories, in order Farnborough Air Show. Its main competitor is 2016 and now it has slipped well into summer
to smooth the final assembly and delivery the Boeing 787 and that aircraft’s troubles are this year. “The engine delays appear to follow
process. Interiors remain an important issue, now well behind it – although never forgotten. from the delays on the Trent1000-TEN
with our understanding that Zodiac is still and As at late April Boeing had delivered 541 787s, engine for the 787. That engine finally flew
issue. The Zodiac situation is compounded (334 -8s and 207 -9s) and had a backlog of 672 on the 787 in April. The Trent 7000 relies on
by the planned acquisition of Zodiac by made up of 89 -8s, 434 -9s and 149 -10s. Those Trent 1000-TEN technology.” Bernstein also
Safran, which is not set to close until 2018. numbers do not include the commitment sees the A330neos order book as weak with
The concern is that Zodiac management may announced in February by Singapore Airlines “115 of the 210 orders either to a lessor or for
not be fully incentivized to drive performance in for a further 19 787-10s to add to the 30 it AirAsiaX, plus 28 orders to Iran Air.” Airbus
improvement during this interim period. ordered in 2013. Production is sitting at 12 a has outstanding orders for 131 A330ceos.
Recent poor operating results at Zodiac have month with the 550th delivered to Hainan
added to these concerns. Still, we expect that Airlines which also announced at the delivery
Airbus will be able to manage through the it would buy an additional 13 787-9s.
interiors issues this year.” And earlier this year Boeing President
and CEO Dennis Muilenburg said that “our toP: Airbus is pitching the
Demand & Supply confidence at being able to operate at 12/ A330neo as being to deliver most
The Bernstein report also states, that there mo is high,” on the 787. “There is a significant of the performance of Boeing’s 787,
but at a lower price. The A330neo
is, “Some risk to the A350-1000, which has a wide-body replacement cycle coming in has an orderbook for 210 airplanes
relatively weak order book (211) and needs the next decade. There is a 20-year demand
to ensure that the Trent 1000 fully delivers for 9,000 wide-bodies. The 787 and 777 LeFt: Singapore Airlines now has a
fleet of 11 A350-900s and is slated
on fuel burn in order to guarantee range.” lines are well-positioned.” Battling the 787 to receive ten A350-900s and have
That range is 7990nm with 366 pax and bags. – quite effectively – at the lower end of the them all in service by 31 March 2018
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