Flying high

The show really started on Sunday for media who turned up at 8am Sunday morning for the arrival of the 787 from Seattle.

Piloted by Captain Mike Bryan the 787, conducted a slow flyby of the runway before landing and the hundreds of bystanders were taken aback by the quietness of the Rolls Royce Trent 1000 engines, particularly when power was applied for a climb out after the flyby.

Bryan, a former carrier pilot, performed a short field landing that any pilot in a STOL aircraft would be proud.

On hand for the arrival were Boeing Chairman, President and CEO Jim McNerney and Boeing EVP & Commercial Airplanes President and CEO Jim Albaugh.

A jubilant McNerney responding to media about the delays in the 787 program said that “for a long time we’ve been on the bleeding edge of technology and now it’s nice to finally be on the leading edge.”

As expected Emirates kicked off the air show with an order for 30 777-300ERs valued at US$9.41 billion while stating that it hoped to have an answer from Boeing by October on its request for an upgraded model of the twinjet.

Emirates, the world’s largest 777 operator with a fleet of 86 in service, has another 16 -300ERs on order and is the only airline to operate every variant.

“Since we took delivery of our first 777 14 years ago, the airplane’s reliability, performance and operating economics have firmly established it as the backbone of our fleet,” said Group Chairman and Chief Executive Ahmed bin Saeed Al Maktoum.

Emirates President Tim Clark told Australian Aviation on the sidelines of the press conference that EK has had one round of discussions with Boeing on its “777 wish list” and he expects a response by October.

He said there was no provision in the order for 30 -300ERs to be swapped for the upgraded model when it comes.
Cornerstone of the airline’s requirements is a 50-tonne payload capability to Los Angeles whereas currently it achieves 34-35 tonnes to San Francisco.

Clark was upbeat on the ability of Boeing’s 777 management team, now headed by its former chief Lars Anderson, to deliver on EK’s requirements.

“If anyone can do it, Lars can,” he said.

Anderson, who had retired, was lured back last year by Boeing Executive VP and Commercial Airplanes President and CEO Jim Albaugh.
“We know what we want; we will wait and see whether a hybrid will do the job,” Clark said.

That hybrid may be a mix of more thrust, composite wing and a slight stretch, he explained.

“All things are on the table,” Albaugh told Australian Aviation.

While Boeing started the orders ball rolling Airbus was quick to follow in “the most orders stakes” with firm orders from GECAS, Aeroflot and Air Lease Corp. for 122 aircraft.

Air Lease Corp., which was created by International Lease Finance Corp. co-founder and former chairman and CEO Steven Udvar-Hazy, ordered 31 A320s and 20 A321-200s, while GECAS ordered 60 A320 family aircraft and Aeroflot ordered 11 A330-300s.

Airbus President and CEO Tom Enders summed up the first day well; “This is a good way to start the show.”

GECAS ordered 60 A320s but added 40 737-800NGs

Boeing’s Albaugh told media that the company was looking at a further rate increase for the 737 and shortly after the show upped the rate to 38 from the current 35.

Responding to a question from Australian Aviation Albaugh said that the Boeing’s 737 replacement/re-engine solution will be something that Southwest Airlines Chairman, President and CEO Gary Kelly “will like.”

Responding to an Air Transport World report that Southwest, the largest airline operator of the 737, is calling for a replacement rather than a re-engine solution Albaugh said Boeing had briefed Kelly with “all options” and no decision has been made by the carrier.

At ATWs June Eco-Aviation Conference in Washington DC, Southwest Airlines EVP Executive VP and COO Mike Van de Ven said the “time has come to develop a replacement to the workhorse narrowbodies” to enable airlines to meet environmental responsibilities and economic challenges.

While Albaugh would not commit further on the status of the 737 program, he said the decision on what option to pursue—an all-new program or a re-engine–would come as early as this autumn, some months earlier than previously had been forecast.
On the third option of doing nothing, he said, “I think we can rule that out.”

On the engine selection for the 737 options, he told media that no decision has been made, Boeing is talking with all three engine-makers about solutions and the company may go with two engine options.

The next aircraft program will be far more disciplined, Albaugh said. “I am an engineer and I want Boeing to be engineer-driven. We will be very disciplined going forward and our project management will be industry best practice.” He noted that the manufacturer would be more likely to bring some work back in-house after the 787 experience.

Bombardier poured cold water on suggestions its may stretch its CSeries beyond 150 seats.

President Gary Scott told media that the “airplane is optimized for the 100/150-seat segment.”

He added that a market exists for well over 6,000 aircraft in the 100/150-seat market worth $500 billion and he would be satisfied if the CSeries captured a 50 per cent share of that market.

The CSeries has left the Joint Definition Phase and is now the Detailed Design Phase, according to the program’s VP Rob Denver.

First flight of the smaller CS100 is set for 2012 with delivery in late 2013 and the CS400 following in 2014.

While no CSeries orders were announced at the show Qatar’s CEO Akbar Al Baker said the airline was “still interested” in the aircraft.
“We would be happy to sign a deal during the show but there are some issues that need to be resolved. Talks are continuing.”

While refraining from fine details Al Baker told ATW Daily News that the issues related to engine-maker Pratt & Whitney. “The engine manufacturer is the stumbling block,” he told ATW.

However Qatar did order two Global 5000 aircraft and a Challenger 605 for its subsidiary Qatar Executive.

Another regional jet short on orders was Mitsubishi Aircraft Corp’s MRJ series but the company claimed it was on track for 1,000 orders or 20 per cent of the market over 20 years.

President Hideo Egawa said the MRJ90 is on time for first flight in 2012 and delivery to ANA in 2014.

Mitsubishi had hoped to announce some orders at Farnborough but now expects agreements within the “foreseeable future”.

Executive VP Junichi Miyakawa said design freeze will be achieved by late summer and “no changes have been made.”

Mitsubishi is contracting out most of the support for the aircraft, with Saab producing the technical manuals, CAE the pilot training and partners yet to be announced for the logistics and MRO functions.

While the Pratt & Whitney is cited as the problem for Qatar with the CSeries, Mitsubishi was upbeat on the P&W PW1217G geared turbofan and has inspected all the recent core test data. “The critical core test has met all design criteria,” Miyakawa said.

Sukhoi Civil Aircraft and Kartika Airlines finalised an order for 30 SSJ100/95B that was first announced in Jakarta in December 2008 and Orient Thai Airlines signed an LOI for 12 SSJ 100/95Bs and 12 options.

CFM International said it is fast tracking work on its LEAP-X after selection by COMAC to power the C919 with certification of the engine slated for 2014, about two years earlier than planned.

EVP Chaker Chahrour told media that the program is going “full speed ahead and nothing is holding us back right now.”

However to meet the early deadline CFM is limiting the introduction of ceramic matrix composites and thus the engine will have a 15 per cent sfc improvement rather than the 16 per cent planned.

Chahrour said that the company has run its LEAP-X e-Core Demonstrator for 150 total hours and is “thrilled” with the results.

On day two of the air show Air Lease continued its Farnborough buying spree, placing orders for 54 737NGs with six options, 10 ATR 72-600s and options for 10 more plus signed an LOI for 15 E-190s plus five options.

ATR also revealed a contract for David Neeleman’s Azul Linhas Aereas for 20 firm ATR 72-600s with 20 options.

Embraer also rolled out more orders with a massive Flybe contract to purchase up to 140 E-175 and E-family aircraft, comprising 35 firm CF34-8E-powered E-175s valued at $1.3 billion, 65 undesignated options and 40 undesignated purchase rights with deliveries to start in September 2011.

Flybe Chairman and CEO said the E-Jets will allow the airline to export its business model into Europe over the next decade.

Possibly not surprisingly the purchase follows the recent announcement of a commercial cooperation with Air France.

Airbus was able to ink MOUs with LAN Airlines for 50 A320 series including 10 A321s and Hong Kong Airlines for 15 A350XWBs and 10 A330-200s.

Other notable commitments were from Dublin-based leasing company Avolon which announced it is the customer for 12 737-800s that were posted to the Boeing website in December 2009 as an unidentified customer, while Russia’s Irkut Corporation scored a significant breakthrough as Malaysia’s Crecom Burj Resources, finalised a launch order for up to 50 MC-21s.

The deal includes 25 firm MC-21-200s seating 150 and options on 25 of the 181-seat MC-21-300s.

The MC-21 will make its maiden flight in 2014, with Russian certification targeted for 2015 and international for 2016.

In the late afternoon of the second day of the show Boeing’s 787 departed for Seattle and visitors were again impressed by the quietness of the aircraft.

The aircraft’s takeoff, albeit lightly loaded, was a muted affair with the Rolls Royce Trent 1000’s hardly noticeable above the cheers from the onlookers.

The 787 then joined a formation of two Supermarine Spitfires and those classic aircrafts’ Rolls-Royce Merlin engines drowned out the 787, even when the Boeing jet pulled up into a steep climb to fly off to Rolls-Royce’s facility at Derby

Day three of Farnborough saw Airbus sign Garuda Indonesia for six A330-200s and Thai Airways International signed an MOU for seven more A330-300s for delivery from the end of 2011.

Boeing’s unveiled new commitments from China’s Okay Airways for 10 737-800s, Qatar Airways and Air Austral for two 777-200LRs each.

The Qatar purchase involved a firming of two of five options and lifts its unfilled 777 firm orders to 10.

And a year after accusing of Boeing of being run by accountants and lawyers at last year’s Paris Air Show, Qatar announced on the third day of the show that it had reached agreement with Boeing to accelerate its 787 deliveries.

Qatar which has orders for 30 787s and options for 30 more, will receive its first in the fourth quarter of 2011and five by the end of the first quarter of 2012.

Al Baker told media that the airline had issues which have been resolved under the new Boeing management.

“There is a big difference in management. It has changed for the better,” Al Baker told media.

And things were just getting better and better for Sukhoi which announced an order from Pearl Aircraft. for up to 45 SSJ-100 aircraft and a letter of intent with Gazprom komplekt for 10.

Qantas gave Bombardier an order for seven Q400s and the aircraft will be delivered beginning in the first half of 2011 and operated by QantasLink. The order takes the Qantas Group’s Commitment to the Q400 to 28.

Away from the show arena RBS Aviation Capital announced it was the customer for an order for 42 737NGs placed in 2008 before the global financial crisis. RBS also confirmed an order for 52 A320s placed around the same time.

In a statement, RBS said that the “95 aircraft will be delivered between now and 2015 and will be leased to RBS Aviation Capital’s airline customers across the world, with all of the 2010 deliveries having already been placed.

RBS Aviation Capital is a division of the Royal Bank of Scotland, which is 83 per cent owned by the British government after it collapsed in the 2008 financial crisis and received a massive state bailout.