Airbus lags Boeing but faces tense end to order race

 Europe’s Airbus sold 248 jets in November, but remained behind Boeing as both planemakers accelerated towards what could be a tight finish to their annual order race.

November’s Airbus sales included a total of 120 A320-family aircraft to three unidentified customers.

However CIT Leasing cancelled an order for one of 15 new-generation A350-900 wide-body jets it had bought, as it finalised an order for 15 upgraded versions of the older A330.

In total, Airbus won 1,328 total orders between January and November, company data showed on Friday. After adjusting for cancellations, it had 1,031 net orders. It delivered 554 jets.

On Thursday, Boeing reported 1,380 orders between Jan 1 and Dec 2, including 100 737 MAX confirmed by Ireland’s Ryanair. Net orders stood at 1,274 aircraft.

Boeing delivered 647 aircraft in the first 11 months.

The two planemakers are heading towards a stronger than expected order intake for 2014, as airlines seek the fuel savings offered by efficient models despite lower oil prices.

Airbus, which is already above its net order target for 2014, has a further 500 provisional orders announced but not yet finalised. Some of these typically get booked in December.

Boeing looks set to top 1,300 net orders for a second year running, exceeding an internal target of 1,100 and reaching what had seemed a stretching scenario just a few months ago.

Airbus said its waiting list of jets sold but not yet delivered had risen above 6,000 units for the first time.

Both firms use overbooking to guarantee a taker for each aircraft produced, mimicking the technique used by airlines to fill seats, meaning some unfilled orders will trickle away.

Dec 5 (Reuters) - Europe's Airbus sold 248 jets in November, but remained behind Boeing as both planemakers accelerated towards what could be a tight finish to their annual order race.

November's Airbus sales included a total of 120 A320-family aircraft to three unidentified customers.

However CIT Leasing cancelled an order for one of 15 new-generation A350-900 wide-body jets it had bought, as it finalised an order for 15 upgraded versions of the older A330.

In total, Airbus won 1,328 total orders between January and November, company data showed on Friday. After adjusting for cancellations, it had 1,031 net orders. It delivered 554 jets.

On Thursday, Boeing reported 1,380 orders between Jan 1 and Dec 2, including 100 737 MAX confirmed by Ireland's Ryanair. Net orders stood at 1,274 aircraft.

 

Boeing delivered 647 aircraft in the first 11 months.

The two planemakers are heading towards a stronger than expected order intake for 2014, as airlines seek the fuel savings offered by efficient models despite lower oil prices.

Airbus, which is already above its net order target for 2014, has a further 500 provisional orders announced but not yet finalised. Some of these typically get booked in December.

Boeing looks set to top 1,300 net orders for a second year running, exceeding an internal target of 1,100 and reaching what had seemed a stretching scenario just a few months ago.

Airbus said its waiting list of jets sold but not yet delivered had risen above 6,000 units for the first time.

Both firms use overbooking to guarantee a taker for each aircraft produced, mimicking the technique used by airlines to fill seats, meaning some unfilled orders will trickle away.

In a sign of previous overbooking, industry sources say Airbus has been pushing buyers of the current-generation A320 to upgrade to the newer A320neo so that it can halt production of the older model in 2018, as planned, and contain costs.

Completing the switch on time while ramping up the A350 are both are seen as crucial to its margin goals.

In November, JetBlue converted an order for 10 of the classic version of A321 to the new A321neo.

The tally included the first firm orders for the upgraded A330neo but left unresolved questions over a gap in orders for the current version, which has already seen a production cut.

Airbus has said it is negotiating a potential deal with China, but analysts say assuring smooth cash generation from the A330 remains one of its key challenges in the next two years. (Additional reporting by Dominique Vidalon; editing by Keith Weir)

Embraer and FlightSafety International complete training of first class of pilots for the Legacy 500

Dubai, UAE, December 8, 2014 – Embraer and FlightSafety International completed the training of the first class of pilots for the new Legacy 500 executive jet. These pilots, trained to operate customer jets, benefited from the complete customer support and services structure with advanced training technology. The simulator was qualified as Level C by the FAA (Federal Aviation Administration) and by Brazil’s ANAC (Agência Nacional de Aviação Civil).

“Well before the entry into service of the Legacy 500, we built out a global support network for our customers,” said Edson Carlos Mallaco, Vice President, Customer Support and Services, Embraer Executive Jets. “Our solid partnership with FlightSafety International resulted in the joint development of a complete high-level training solution.”

Training is being conducted at Flight Safety International, in St. Louis, Missouri in the U.S. FlightSafety International is also Embraer’s training service provider for Legacy and Lineage executive jets, in addition to the E-Jets commercial aircraft.

The Legacy 500 received certification from ANAC in August and from the FAA in October. EASA (European Aviation Safety Agency) certification is imminent. The Legacy 500 is now able to operate in Brazil, United States, and in countries that require FAA certification. The first Legacy 500 was delivered to a Brazilian customer last October 10.

VIP Configuration of Sukhoi Superjet 100 Certified

The Aviation Register of the Interstate Aviation Committee confirmed the possibility to equip the Sukhoi Superjet 100 aircraft with the enhanced comfort passenger cabin interior. This Major Change Approval to the baseline Sukhoi Superjet 100 Type Design, issued by IAC AR In late November 2014, confirms the safe operation of this aircraft type in the VIP configuration submitted for certification.

“Our Company is now engaged in the activities aimed to introduce the Sukhoi Superjet 100 business version. The SSJ100 business jet version will meet not only the highest requirements for comfort but also serve the demand for long non-stop flights which is increasingly evident in the changing business aviation market”, noted Ilia Tarasenko, President of Sukhoi Civil Aircraft Company. “The certification achieved on the enhanced comfort interior is another milestone in the planned development of the SSJ100 business version”.

The aircraft, which is based on the baseline RRJ-95B platform certificate, is characterized by the more comfortable passenger cabin achieved by fitting the newly-developed VIP-interior, the provision of higher level of service and the provision of on-board multimedia systems. Together, this makes it possible to both work and relax during flights.

The SSJ100 VIP interior is designed for 19 passengers, hosted in a passenger cabin divided into several sections.

The first and second section, intended for business meetings, are equipped with comfortable furniture, state-of-the-art multimedia systems and rotating-sliding seats.

The main passenger cabin is equipped with a full-scale working station, furniture to relax and a wardrobe. A separate lavatory is provided at the rear of the aircraft, just past the main passenger cabin.

The service section includes two cabin crew seats, a pantry-galley module with the latest equipment, a crew and passenger lavatory, as well as a wardrobe for passengers’ carry-on baggage.

The certified cabin configuration was designed with reference to the requirements of the launch customer, the Russian Government, which has placed a firm order for the new variant. The spacious cabin of the Sukhoi Superjet 100 allows for great flexibility in interior configurations, enabling the aircraft to meet all customer preferences and needs.

As a business jet, the Sukhoi Superjet 100 VIP is firmly placed in the Ultra Large category, characterized by long range and spacious cabins, while also offering very competitive acquisition and ownership costs.

Airbus Defence and Space wins A400M support contract from France and UK

Airbus Defence and Space has won a contract from France and the UK to provide a wide-ranging and innovative in-service support (ISS) package underpinning the entry into service of the A400M Atlas new-generation airlifter.

The contract was awarded by the UK’s procurement agency Defence Equipment & Support (DE&S), and the French Direction générale de l’armement (DGA) through the OCCAR international programme management organisation.

Elements of the contract, including in particular a pooled spares agreement, have been developed together with the two countries and are expected to lead to a range of joint support activities.

Under this contract, Airbus Defence and Space is performing a wide variety of maintenance, technical, materiel and operational support functions.

Airbus Defence and Space Executive Vice President Military Aircraft, Domingo Ureña Raso, said: “We are proud to be able to implement this innovative support solution which provides a solid foundation for the A400M Atlas entry into service.

“It will enable us to deploy best commercial practice in support of an aircraft that we confidently expect will set new standards in reliability, maintainability and availability.“

The UK and France have ordered respectively 22 and 50 A400M Atlas aircraft.

Fokker selected by Boeing to perform a 737-800 Head-of-State VIP completion

Fokker Services, part of Fokker Technologies, has been selected by Boeing to carry out a Head of State VIP completion for an undisclosed Asian customer. The aircraft is scheduled to arrive at Fokker Services Netherlands facility in October 2015 with a scheduled redelivery in August 2016. With the contract concluded only last Friday, Fokker Services adds another important landmark to its VIP completion activity.

“Fokker Services has surprised us with its ideas on cabin innovations. During the last EBACE they introduced the SkyView Panoramic Window for BBJ’s which is an example of such a cabin innovation, setting new Business Jet standards. Its extensive in-house capabilities are recognized and found appropriate for BBJ completion business” said Steve Taylor, President of Boeing Business Jets.

“We are proud that our VIP completions, design concepts, and craftsmanship are acknowledged and highly appreciated by one of the most important leaders in the aviation industry. We are honored to have this opportunity to showcase our capabilities, With our long standing roots in aircraft engineering and manufacturing we look forward to delivering a premium product and exceptional experience to our highly valued customer. This VIP completion award together with the development of the SkyView Panoramic Window for BBJ’s being on track, will bring our relationship with Boeing to new levels”. according to Johan van Dorst, Sales Director of the Fokker Aircraft Completion and Conversion activities.

Fokker services press release

Air fares seen dipping thanks to oil slump

(AP) — Flying could get cheaper next year as airlines say they will finally start passing on some of the savings made on plummeting oil prices.

Carriers are forecasting record profits for 2015 thanks to cheaper fuel and rising demand. As a result, they expect to cut the average ticket price by 5 percent in 2015, excluding surcharges and taxes.

That may not be a big decrease considering that the price of crude oil has fallen 40 percent since June, but is the most carriers can do for now, the International Air Transport Associated said Wednesday.

The association, which represents 240 airlines, or 84 percent of total air traffic, notes carriers are still stuck with contracts for fuel that pre-date the past months’ price slump.

That’s one reason why airlines have this year not cut ticket prices despite the oil price fall. In fact, as demand for flying remains strong, fares have been going up.

But things should start changing next year. That’s when airlines’ fuel costs will start reflecting the recent plunge in energy markets, says IATA’s chief economist, Brian Pearce.

“It’s going to be six months or so before airlines are seeing lower fuel costs, and at that point consumers are likely to see a fall in travel costs,” Pearce told The Associated Press.

The airlines will still be making more money. They forecast record net profit of $25 billion next year — well above the $19.9 billion this year, the $10.6 billion in 2013 and $6.1 billion in 2012.

That is based on a forecast that the price of oil will average $85 per barrel. On Wednesday, the U.S. contract was trading below $63 a barrel.

IATA’s U.S. counterpart, Airlines for America, declined to comment on where fares are headed but expressed satisfaction with lower fuel prices.

“We’re certainly hopeful that the cost environment and the demand environment will stay healthy” so airlines can invest in new planes and passenger amenities, said the U.S. trade group’s chief economist, John Heimlich.

Demand for travel has been so strong that airlines just haven’t seen a need to cut prices. That approach has helped drive airline stocks higher as fuel prices have tumbled. But on Tuesday, shares of Spirit Airlines Inc. plunged 12.7 percent — and other U.S. airlines fell too — after the discount carrier said it saw signs that cheaper fuel was leading to lower prices on last-minute tickets.

Despite higher earnings, many airlines remain cautious about their finances as profit margins remain slim. Geneva-based IATA said margins are forecast at only 3.2 percent, just up from 3.1 percent in 2010.

Tony Tyler, director-general and CEO of IATA, said that even with the fall in jet fuel prices, the average profit would still amount to little more than $7 per passenger per flight — well below other industries.

He note Starbucks, for example, has a declared profit margin of about 14 percent.

“If that is the case, they will retain as much from selling seven cups of coffee as an airline will make selling an average ticket,” Tyler said.

That’s why airlines are taking advantage of a golden moment, in which fuel costs are falling just as demand rises.

Passenger traffic has been expanding by about 5.5 percent per year for the past two decades but IATA said it is expected to grow 7 percent in 2015.

North American airlines are expected to make the biggest profit next year — $13.2 billion, from $11.9 billion this year — but see only a modest increase in demand. Carriers in Europe are expected to see net earnings rise to $4 billion in 2015 from $2.7 billion this year, with demand roughly unchanged.

The highest growth in demand is forecast in emerging markets in Asia, the Pacific region, the Middle East, Africa and Latin America.

Asian airlines should see profits hit $5 billion next year, bringing them back to 2011 levels, while the Middle Eastern ones should rise to $1.6 billion from $1.1 billion.

SOURCE AP.

Airbus says first delivery of A350 to Qatar postponed

(Reuters) – First delivery of the new Airbus A350, scheduled for Saturday, Dec. 13, has been postponed and no new date has been set, the planemaker said on Wednesday.

“We are working very closely with Qatar Airways to meet our common goal to deliver their first A350 XWB very soon,” an Airbus spokesman said.

Qatar Airways is the biggest customer for Airbus’s new-generation wide-body aircraft.

Earlier this year, it delayed taking delivery of its first A380 superjumbo for several months in a dispute over cabin fittings.

SOURCE REUTERS