Boeing firms up orders for 43 787s from ALC and GECAS

 By BA Staff

Boeing and Air Lease Corporation (ALC) announced today that they have completed an order for 30 787-10 and three 787-9 Dreamliners. The order, valued at $9.4 billion at list prices, fulfills the commitment originally announced during the 2013 Paris Air Show in June.

ALC Chairman and CEO Steven Udvar-Hazy had this to say about the partnership:

"We are thrilled to be adding 787-10s and additional 787-9s to our portfolio. The performance characteristics of the 787-10 will build on the 787 family's success in the marketplace by providing the ideal size, capabilities and economical operating costs for medium to long-haul markets."

Furthermore, Boeing and GE Capital Aviation Services (GECAS), the commercial aircraft leasing and financing arm of General Electric, announced today that they have completed an order for 10 787-10 Dreamliners. The order, valued at $2.9 billion at list prices, completes the commitment originally announced during the 2013 Paris Air Show in June and builds momentum in the airplane leasing market for the 787-10.

GECAS President and CEO Norman C.T. Liu said:

"These airplanes are an excellent addition to our broad portfolio of modern, fuel-efficient aircraft. This order enables us to offer our airline customers an airplane with the lowest operating costs."

The new 787-10, launched in June 2013, will extend and complement the family, carrying 300 to 330 passengers up to 7,000 nautical miles (12,964 km) and accommodating more than 90 percent of the world's twin-aisle routes. The 787-10 also will be 25 percent more fuel-efficient than airplanes of its size today and more than 10 percent better than anything being offered by the competition for the future.

Boeing Commercial Airplanes President and CEO Ray Conner described his point of view on the matter:

"As a leader in the leasing industry, GECAS's 787-10 order is a strong statement about the capabilities of this highly efficient airplane. The 787-10 will provide GECAS customers the efficiencies and passenger comforts needed to succeed in an increasingly competitive marketplace."

The 787-10 will feature the 787 family's unique interior. The interior technologies make the passenger experience more enjoyable, including large, dimmable windows; cleaner air; higher humidity; lower cabin altitude; bigger stowage bins; soothing LED lighting and a smoother ride. To date, the 787-10 has accumulated 102 orders and commitments from five customers worldwide.

These 787-10s bring the total number of airplanes GECAS has ordered from Boeing to 598 since 1995, including 737s, 747s, 757s, 767s, 777s and 787s. To date, GECAS has taken delivery of 451 Boeing airplanes.

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Boeing 2nd quarter deliveries point to slow recovery from 787 fiasco

by Vinay Bhaskara

Chicago based airframer Boeing S.A. reported a 13% rise year over year in aircraft deliveries for the second quarter of 2013, after the resumption of 787 Dreamliner deliveries in May following its grounding earlier this year pushed the total to 169 aircraft, up from 150 a year prior and 137 in the first quarter of 2013.

Boeing delivered 116 737 Next-Generation narrow-bodies versus 109 a year earlier, 16 Dreamliners (against 6 in Q1 2012), 6 747-8 quad-jets, 8 767-300s (passenger and cargo), and 23 777s.

The rise in deliveries marked a positive step in Boeing's recovery from the grounding of its newest product line, the Boeing 787, in mid-January. Since that costly grounding, Boeing reported yet another quarterly profit, launched the largest iteration of the 787; the 787-10, with 102 orders at the Paris Air Show, and made progress towards the launch of the Boeing 777X program. The strong quarterly deliveries simply marks another step in Boeing's road to recovery.

Image courtesy Boeing

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Video: Behind the scenes at Boeing chalet at the Paris air show

by Devesh Agarwal

A quick 2m30s video showing the Boeing chalet and the highlights of the Paris air show from Boeing's perspective

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Airbus A320neo a runaway success at the Paris Air Show, pressure on Boeing

Driven by rising fuel costs, growing environmental legislation, and shrinking margins, airlines from across the world have sent a clear message to airplane manufacturers by ordering massive numbers of the fuel efficient A320neo.

A320neo with CFM International's LeapX engine

neo which stands for New Engine Option is a re-engined version of the single aisle Airbus A320 family aircraft equipped with new engines from Pratt and Whitney and CFM that are 15% more fuel efficient than current models, with deliveries commencing from 2015.

A320neo with Pratt and Whitney PurePower PW1100G geared turbo-fan engine

Last year, when Airbus President and CEO Tom Enders visited India, the Airbus board had not yet taken a decision on whether to offer the neo. In my discussions with him, I could sense a hesitation at the board level of Airbus S.A.S., not by the concept, but on the impact on the airframer; whether Airbus would be able to devote adequate resources to both the A320neo and the upcoming A350XWB.

At this year's Paris Air Show (PAS11) 667 of the total 730 orders announced by Airbus were for the A320neo family.

With the unprecedented volume of A320neo orders and commitments announced during this week’s Paris Air Show validating Airbus’ decision to launch this enhanced option, the board's doubts though, may come back to haunt the production team which will now have to deliver the massive orders booked. As Enders says

"With over 1,000 commitments just half a year after launch our A320neo is a real bestseller,” "I have to admit, I largely underestimated the market demand for neo before this show.”

Pressure on Boeing
This bonanza for Airbus, clearly puts pressure on rival Boeing, maker of the A320 competitor, the 737, who has been mulling whether to offer a re-engined version of the aircraft for delivery in a few years, or to develop an entirely new design of aircraft which will be available for delivery early next decade.

The re-engining of the Boeing 737 is not as easy since it sits much closer to the ground, but Boeing can no longer sit and watch, Boeing has to respond. Even fiercely loyal customers like American Airlines are mulling the induction of the A320neo in to their fleet. In the past, Boeing executives have said they expect to decide on the company’s future single-aisle strategy by the end of this year.

Asian low cost carriers dominate the A320neo order show
Three large orders came from Asian low cost carriers. India's IndiGo firmed up a previous world record memorandum of understanding for 150 A320neo and 30 A320s to be powered by Pratt and Whitney's PurePower PW110G Geared Turbo Fan. GoAir placed a firm order for 72 A320neo, and the world's largest order in history came from Malaysia's AirAsia which placed an order for 200 A320neos to be powered by CFM International’s new LEAP-X engines.

Some of the other A320neo family orders and MOU's announed at PAS11

• JetBlue signed a memorandum of understanding (MOU) for 40 A320neos
• Garuda Indonesia signed a memorandum of understanding (MOU) for 10 A320neos
• CIT Corp. signed a memorandum of understanding (MOU) for 50 A320neos
• TransAsia Airways placed a firm order for six A321neos
• Air Lease Corporation signed a memorandum of understanding (MOU) for 50 A320neo
• SAS Scandanavia placed a firm order for 30 A320neo family aircraft
• GE Capital Aviation Services (GECAS) placed a firm order for 60 A320neo aircraft
• AviancaTaca of Colombia, which includes subsidiary AeroGal of Ecuador, has signed a Memorandum of Understanding (MoU) for 33 A320neo
• Republic Airways Holdings, Inc., the parent company of U.S.-based Frontier Airlines signed a memorandum of understanding (MOU) for 40 A320neoand 40 A319neo all powered by CFM International’s LEAP-X engine. They will become the launch customer of the A319neo
• LAN Airlines, Chile, placed a firm order for 20 A320neo
• ALAFCO, Kuwait, has signed an agreement for 30 Airbus A320neo

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