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Deluge of Orders
The Farnborough International Airshow (FIA) held in July did phenomenal business with orders and commitments achieving a new record of $201 billion, reflecting buoyancy of the aerospace industry
The weather at Farnborough during the biannual International Airshow is so typically English – unpredictable, fluctuating between rain and sunshine. In 2012, it was raining, so were the orders. In 2014, it was bright and sunny and it was a deluge of orders. A whopping $201 billion worth of confirmed orders and commitments, the show couldn’t have asked for more. Farnborough International Ltd (FIL) confirmed the total sum of orders and commitments had reached $201 billion, beating all previous records. The figure represents an extremely positive note for the global aerospace industry. Threre were orders and commitments for 1,600 civil jet engines valued at of $34.5 billion, over 1,100 aircraft worth $152 billion. and service contracts for $14.5 billion, all reflecting buoyancy of the aerospace industry.
Shaun Ormrod, Chief Executive for FIL, said, “We are extremely pleased by these numbers, there is already an order backlog and these additional orders will keep manufacturers in business and people employed for some years to come. It is great news for UK business and the economy.”
Airbus Leads the Charge
The first day of FIA 2014 saw a flood of orders and commitments for new commercial aircraft and engines and also the launch of the Airbus A330-800neo and the A330-900neo as well as the launch of the Trent 7000 which will be the exclusive engine on the A330neo. The launch of the new aircraft was followed by an announcement that Air Lease Corporation had signed a memorandum of understanding (MoU) for 25 A330-900neo aircraft, becoming the first launch customer for this new wide-body.
By 3:00 p.m., there were firm orders and commitments for 326 large commercial jets and regional aircraft with a combined value of $33.3 billion. In addition there were orders and commitments for a total of 674 jet engines with a combined value of $8.6 billion. The show was rolling.
The Airbus Chief Executive Fabrice Bregier declared it “The best Farnborough Air Show in Airbus history in terms of jet sales. I am personally very happy.” Airbus had won during the week business worth over $75 billion for 496 aircraft, a new Airbus record at Farnborough. The deals comprise MoU for 138 aircraft worth $36.9 billion and purchase orders for 358 aircraft for $38.4 billion.
In the single-aisle sector, Airbus A320 family garnered an impressive 363 commitments worth $39 billion. Of these, orders for 317 A320neo and A321neo aircraft worth $34.4 billion are a further reflection of how the A320neo family continues to outpace the competition. To add icing to the cake, Airbus achieved the 3,000th A320neo sale during the show. The milestone was reached when SMBC Aviation Capital ordered 110 A320neo aircraft, marking the show’s biggest vote of confidence for the leading single-aisle airliner.
John Leahy, Chief Operating Officer, Customers, Airbus, said, “Orders and commitments we’ve received at this record-breaking Farnborough for both the A330neo and A320neo families are together an unequivocally resounding endorsement for these most cost-efficient aircraft. For both our single-aisle and wide-body categories, the high representation of lessors, widely regarded as the global ‘barometer’ of the industry, is indicative of the long-term confidence in the capacity needs for sustainable growth for the airlines in the years ahead.”
Boeing Up Close
Boeing’s order book at Farnborough does not certainly match that of the European giant, but the American airframer which marked its 40th year at Farnborough, highlighted its innovative, efficient commercial airplanes and its advanced defence capabilities. Boeing announced a new 200-seat 737 MAX 8 option that will give airlines up to 11 more seats of revenue. This latest addition to Boeing’s comprehensive product and services line-up will deliver 20 per cent fuel-consumption savings compared to today’s Next-Generation 737.
Boeing also announced details about the interior of the future 777X. The new model will build on the award-winning interior of today’s 777 and apply 787 Dreamliner cabin innovations i.e. higher cabin humidity, windows more than 15 per cent larger and a cabin that is 16 inches wider than the competitor, allowing airlines a variety of economy class seat widths.
Boeing unveiled its new Maritime Surveillance Aircraft based on a Bombardier Challenger 605 business jet. This will provide customers with maritime and overland surveillance, anti-piracy, coastal security and search-and-rescue capabilities. It also signed a memorandum of collaboration with Paramount Group to jointly develop defence and security opportunities in key international markets.
“Over 40 years of exhibiting at Farnborough, Boeing has consistently demonstrated its commitment and drive to innovate and develop game-changing products, equipment and services across the commercial and defence sectors,” said Charlie Miller, Vice President, International Communications. “Farnborough 2014 was filled with excitement and enthusiasm among our customers, partners and suppliers reflecting strong endorsement of our product line. Commercial orders received bring our tally this year to 783.”
Bombardier’s Great Week
Bombardier Aerospace announced firm orders, conditional purchase agreements and letters of intent for a total of 74 aircraft, valued at over $4.25 billion. “It has been a great week for Bombardier at the Farnborough Airshow and I’m very pleased with the momentum we’re building across our entire product portfolio. Our discussions with customers have progressed and we were very pleased to make a number of announcements,” said Guy C. Hachey, President and CEO , Bombardier Aerospace.
Bombardier Commercial Aircraft kicked off the airshow by announcing the signing of two letters of intent (LOIs) for up to 24 CS-100 aircraft by Falko Regional Aircraft Limited. With orders by Loong Air, Petra Airlines and an undisclosed African airline, the list of customers for CSeries aircraft grew to 20. In addition, an existing customer signed a conditional purchase agreement for up to 13 CS300 aircraft. In addition, AirBaltic and Falcon Aviation contributed to bringing the number of firm orders to 513.
Bombardier demonstrated its path towards the entry-into-service of the CSeries aircraft by launching the Smart Parts programme and announced the approval of the all-new jetliner’s maintenance, both geared towards maximising utilisation and providing more competitive maintenance costs to operators of CSeries aircraft.
On the Q-400 NextGen aircraft programme, Bombardier celebrated surpassing the milestone of 500 firm orders with the latest order from Horizon Air and Nok Air. In addition, Bombardier signed an LOI for five Q-400 NextGen turboprops with Falcon Aviation., Bombardier officially announced a cargo-passenger combi configuration of the turboprop. The Q-400 NextGen aircraft on static display was joined by a CRJ-900 NextGen aircraft in American Airlines’ livery and Bombardier showcased the enhancements in its regional jet programme, including up to 5.5 per cent lower fuel consumption than earlier-generation CRJ-900 aircraft. Bombardier also shared its vision of double-digit fuel burn reduction by 2020.
Bombardier Business Aircraft had a full range of its industry-leading aircraft on static display, including the Learjet 75, Challenger 350, Challenger 605 and Global 6000 jets. The event marked the European debut and first public appearance for the Challenger 350.
ATR Gung-ho About Regional trends
Clean Sky - European Model to Emulate
Cleaner and less noisy environment is taking centre-stage amongst the aviation community in Europe and Clean Sky, a public-private partnership, is working as a catalyst. With air transportation expanding rapidly in Europe and elsewhere, the environmental concerns are growing. However, efforts are on to manage the environmental issues.
Clean Sky is entering its Phase II in its bid to achieve the 2020 goals of the Advisory Council for Aeronautics Research in Europe (ACARE). The goals set by ACARE are a 50 per cent reduction in fuel consumption and carbon dioxide emissions, an 80 per cent reduction in nitrous oxides emissions and 50 per cent reduction in external noise. These are ambitious targets, nevertheless these need to pursued relentlessly.
Clean Sky, in its bid to meet the ACARE goals, has been getting funds from companies, government entities etc. The European Commission provided 800 million Euro to develop cutting-edge technologies required to meet these goals. The EC figure was matched by financial and in-kind contribution from the 12 industry leaders and 65 associates that make up Clean Sky membership.
Speaking to SP’s Aviation, Liliya Buyukliyska of Clean Sky said that between 2009 and 2014, 15 calls for proposals were issued and evaluated and now further calls for proposals have been issued and are currently under assessment. Over 650 projects have been launched so far with the average value of a topic being Euro 5,00,000.
She said that the Clean Sky programme could be replicated in other regions, but the initiative has to come from the region. Clean Sky’s research work is divided among six different platforms called integrated technology demonstrators (ITDs), Smart Fixed Wing Aircraft (SFWA), Green Regional Aircraft (GRA), Green Rotorcraft (GRC), Sustainable and Green Engines (SAGE), System for Green Operations (SGO) and Eco-design (ED). Over 20 demonstrators are being developed at a very high technological maturity level, she mentioned.
Some of the developments that are taking place encompass all segments of airline business, business jets, regional airlines, commercial airlines and helicopters. She gave the example of the 90-seater regional concept aircraft which features advanced technologies in almost all sub-systems, low weight structure, extensive use of electrical power in systems, advanced flight management systems etc. This next generation turboprop that is in the concept stage, could enter service in the period 2020 to 2025.
— By R. Chandrakanth
Nordic Aviation Capital (NAC) placed an order for 75 ATR-42-600 valued at $1.55 billion Making NAC the largest ATR customer. Patrick de Castelbajac, ATR’s CEO declared “We are delighted to see NAC placing another very important order for the world’s best-selling regional aircraft. Today at the Farnborough Airshow, where ATR and NAC finalised a contract covering 75 new ATR-600s, we have confirmed once again the growing trend for our customers to have a balance between purchasing and leasing their ATR aircraft. ATR represents a solid investment for leasing companies.”
Rolls-Royce Revs Up
Rolls-Royce debuted the Trent XWB engine on Airbus A350 XWB and the new ‘stretch’ Boeing 787-9 Dreamliner. The selection of the new Rolls-Royce Trent 7000 engine as the exclusive power plant for Airbus’s A330neo aircraft preceded selection announcements by AirAsia X (50 aircraft), Transaero Airlines (12) and lessors Air Lease Corporation (25), CIT (15) and Avolon (15). The Trent 7000 builds on the market-leading Trent 700 to deliver significant performance benefits, improving specific fuel consumption by ten per cent and halving perceived noise.
Rolls-Royce also announced an $86 million order from lessor MG Aviation for Trent 1000 engines to power two Boeing 787-9 Dreamliners. United Airlines extended its TotalCare agreement to support its fleet of RB211-535 engines powering the Boeing 757.
CFM, Engine of Choice
CFM International’s industry-leading LEAP and CFM-56 product lines remain the engines of choice for single-aisle aircraft with the company signing orders, commitments and long-term service agreements for a total of 1,062 engines. During the week, EasyJet selected the LEAP-1A engine to power 100 Airbus A320neo family and the CFM-56-B engine to power 35 A320neo aircraft. The other wins included American Airlines opting for LEAP-1A engine to power 100 Airbus A320neo aircraft, Monarch Airlines to purchase LEAP-1B to power 30 Boeing 737 Max, Hainan Airlines selecting LEAP engines to power 50 Boeing 737 MAX airliners and InterJet selecting LEAP 1A to power 40 A320neos.
“What an incredible week,” said Jean-Paul Ebanga, President and CEO of CFM International. “We started the show predicting that 2014 would be another record year. The prediction came true in a big way. As of today, we have total orders and commitments for more than 3,000 engines. And it is still only July. Both the LEAP and CFM-56 product lines continue to prove their worth to our airline customers around the globe and we are constantly gratified by the continued faith these airlines show in our people and our products. As always, our job is to continue to earn their trust, delivering the reliability and operating economics they expect from CFM.”
Pratt & Whitney-IBM Partnership
Pratt & Whitney, a United Technologies Corp company, has teamed with IBM to enhance the engine fleet management and health solutions. The arrangement will significantly broaden its current performance monitoring capabilities of more than 4,000 operational commercial engines. IBM will assist Pratt & Whitney in leveraging its world-class, military diagnostic, prognostic and health management capabilities to enable proactive and automated logistics to its rapidly expanding commercial fleet.
This will provide Pratt & Whitney customers with longer time on-wing, complement current asset maintenance alerts and deliver better insight into flight operational data.”By incorporating learnings from our military engines programmes where we are pushing the envelope in terms of monitoring capabilities and teaming with IBM to integrate component and system health information, we will strengthen our commercial engine health analytics offering for customers,” said Matthew Bromberg, President, Pratt & Whitney Aftermarket. There were many more announcements of varying dimensions, signalling the good times ahead for the aerospace industry.
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