Airbus News

Airbus, Emirates and aircraft leasing company Amedeo teamed up on Thursday in a charm offensive to sell US airlines on the world's biggest airliner, the Airbus A380. But the pitch was not made directly to airlines. Instead, the companies came to New York to convince airline shareholders and Wall Street analysts that the massive aircraft will not threaten industry profit margins and in fact would make economic sense.

If US airlines don't use the A380, "they are leaving profits on the table for others to take," said Mark Lapidus, chief executive of Amedeo, speaking on the sidelines of a briefing at New York's Kennedy Airport. "We are a little concerned with how the Street will react to enlarging capacity," he said, noting that the executives of Airbus, Emirates and Amedeo are here to "broaden their knowledge" of how the plane can make money. By flying 500, 600 or more passengers into airports such as London Heathrow or Hong Kong, airlines can accommodate growing demand for air travel without adding additional flights. Dubai-based Emirates, the largest A380 operator, said the aircraft is crucial to its strategy and noted it has been consistently profitable for more than 20 years. "We're able to use it to grow revenue in a way that we wouldn't be able to do with any other aircraft type," said Nigel Hopkins, an Emirates executive vice president.

The major US carriers, American Airlines, United and Delta Air Lines, do not currently use the A380 but are facing growing competition in the United States from Emirates and other carriers that do. With many airports "slot constrained" - at or near the limit of takeoffs and landings they can handle - airlines face limited scope for revenue growth. But Emirates has nearly doubled its revenue in seven years at London Heathrow, using the A380 and just five slots at that constrained export. "This is where the A380 really excels," Hopkins said. Even in airports that are not constrained "there's more than enough demand to justify an aircraft of that size," he said.

The briefing came a day after Emirates cancelled 70 orders for Airbus's new, A350, which is smaller than the A380 but has newer technology. It also comes as Amedeo seeks lease customers for 20 Airbus A380s it agreed to buy in February. It has not yet announced which airlines will use those aircraft, due for delivery in coming years. An analysis at the briefing showed that of the top 20 global routes, 15 are slot constrained and that about 150 A380s could be used on those routes, while only about 35 are currently deployed there.

(Reuters)

Lufthansa’s 12th Airbus A380 is baptized “Hamburg”

http://www.runwaygirlnetwork.com/2014/06/07/lufthansas-12th-airbus-a380-is-baptized-hamburg/

The Airbus A380 does not feature in the current plans of Delta Air Lines, an executive at the carrier said, citing the reliability and efficiency of smaller aircraft. "We don't see an application for the A380 in our network," Steve Dickson, senior vice president for flight operations, said during an interview at the AIAA Aviation Forum in Atlanta.

The A380, which entered service in 2007, can carry more than 500 passengers. Airbus has been trying to boost sales of the plane. Earlier this month, Delta ordered 15 Airbus A321s in a deal valued at USD$1.65 billion at list prices. It also has issued a request for proposals for the purchase of up to 50 wide-body jets. Dickson said planes with four engines such as the A380 were likely "not viable" for most of Delta's markets. "The reliability of the two-engine airplanes and the efficiency of them is just too compelling," he added. Dickson, who is qualified as a Boeing 757/767 captain and has also flown the 727 and 737 at Delta, also said the carrier was not seeing a shortage of pilots. While some regional carriers have cited problems finding qualified pilots, Dickson said Delta had not seen a big impact yet at its feeder carriers.

Delta is hiring 50 pilots a month for the foreseeable future, Dickson said. He added that the majority of the new pilots were replacing retirees. "There's a lot that's changing in the industry right now in terms of the career path for pilots that we need to make sure that we stay abreast of," Dickson said. "For example, there are fewer military pilots available. The number of pilots who have been coming out of US flight training schools has been declining for a number of years. We also have a lot of retirements."

(Reuters)

The #A350 XWB has completed hot weather testing in Al Ain (UAE) to check its behaviour at temp. reaching above 40°C.

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MSN005 is the final A350 aircraft that will join the test fleet. A350 XWB test fleet now complete: ‘MSN005’ – the fifth and final flight-test aircraft takes to the skies.

Airbus and the Jeddah-based Islamic Development Bank (IDB) are seeding a sharia-compliant aircraft leasing fund to cater to growing demand for commercial financing from airlines in the Middle East, Asia and Africa. The fund, which will finance Airbus aircraft and has a target size of USD$5 billion. Airbus developed the fund together with Dubai-based Quantum Investment Bank and Palma Capital, and will seed it together with the IDB. Cayman-based International Airfinance Corporation will serve as fund manager. Gulf airlines such as Etihad Airways, Emirates and Qatar Airways have transformed the aviation industry over the last decade through aggressive expansion, while Islamic finance is a growing element to win business in the region.

"Our main goal is to attract new sources of capital to our industry for the benefit of our customers. Our market has become a lot more international, in particular in the financial market," Yann Ballet, head of project and structured finance at Airbus, told Reuters. With an order book that is heavily weighted towards Middle East and Asia, Airbus was keen to develop an Islamic finance solution to cater to that part of the world, he added. "We came very quickly to the conclusion that Asset-based finance is very attractive under Islamic finance principles."

The fund will use a 4-to-1 mix of sharia-compliant debt and equity, with the first tranche expected to close by the end of September, Ballet said, adding the fund already had existing investor commitments and several transactions in the pipeline. Use of lease financing has expanded among commercial airlines. Large carriers, which tend to secure lower lease rates, reduce the risk of a fall in the value of their fleets, while smaller rivals gain aircraft they could not buy outright. Commercial aircraft financing surpassed the USD$100 billion mark for the first time last year and this figure is set to be higher this year, a report by consultancy Flightglobal said.

Lease financing currently represent a third of aircraft deliveries and this could reach half of all new aircraft deliveries by the middle of the next decade. Gulf-based carriers are prominent in Airbus's order book, but the fund's geographical mandate covers all of the IDB's 56 member-countries, which could see it extending financing well beyond the region. In May, Garuda Indonesia secured USD$100 million in financing from a unit of Malaysia's Maybank to fund its operations and expansion. In 2012, Sri Lankan completed a USD$175 million sharia-compliant loan facility from a syndicate of five Gulf-based Islamic banks.

(Reuters)

Airbus is reported to be close to a decision to upgrade its A330 with engines provided by Rolls-Royce, setting the stage for a new phase in a battle for orders. The move will strengthen a growing strategic pairing between the European companies, with General Electric - the main alternative engine supplier on the existing version of the jet - no longer seen as a contender to take part in the USD$2 billion project, provisionally dubbed "A330neo". People familiar with the matter, asking not to be named, told Reuters news agency the go-ahead with Rolls-Royce as sole supplier for an updated A330, offering up to 14-15 percent in fuel savings with the help of new wingtips, remains subject to Airbus Group board approval.

Board members at the Franco-German group are expected to meet in coming days ahead of the July 14-20 Farnborough Airshow, which is usually the showcase for major launch announcements. However, it remains unclear whether Airbus will officially unveil the new project at the event, since it usually waits to have orders in the bag first. Purchasing decisions are expected later this year from some potential key launch customers such as Delta Air Lines, which is currently replacing Boeing 767 and 747 jets. Airbus, which has promised investors a decision this year on whether to revamp the 253-295 seat A330, said none had been taken so far.

"We will have a comment when we have a decision. There is no decision yet," a spokesman said. Rolls-Royce said it was "not aware" of a final A330 decision having been reached, and that any announcement would come from Airbus. GE reiterated it had offered its GEnX engine for the revised jet, but declined to comment on the commercial talks. The A330 first entered service 20 years ago and had been expected to be overtaken by a new generation of carbon-composite jets such as the 787 Dreamliner, and soon the Airbus A350. Following a three-year delay to the 787's arrival, sales of the A330 held up better than expected. But the backlog of undelivered aircraft has been dwindling as the 787 recovers momentum, and Airbus is keen to inject new life into its most profitable wide-body jet.

PRICE, AVAILABILITY

The move raises the prospect of a potentially bruising transatlantic battle for sales at the lower end of the market for wide-body jets, which ranges from the 230-250 seat A330-200 and 787-8 to the 525-seat A380 superjumbo. Airbus has said it will offer the refreshed A330 at significantly lower prices than the 787 and match the newer plane's performance per seat on most key routes. Industry experts have speculated that Boeing could respond by changing its one-size-fits-all 787 pricing strategy by offering different prices for different levels of performance - a move sometimes interpreted as a form of discounting. But Boeing is also expected to look just as hard at ways of increasing availability of the 787, which is mostly sold out until around the end of the decade. Boeing produces 10 787s a month but targets 14 a month by end-decade.

Both plane makers will be under pressure from investors to prevent the contest developing into a price war that might destabilise wider pricing and undermine profitability goals. The A330neo is expected to be launched in two versions, updating the A330-200 and A330-300. One casualty will be the smallest member of the Airbus A350 family, the slow-selling 270-seat A350-800, which faces the axe. The re-engined A330 is expected to be marketed as the entry point for Airbus's wide-body portfolio, prompting some in the industry to give it a different name: A350-200/300.

(Reuters)

You can follow A350XWB related news here if you wish...

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Airbus rolls out the first A320neo equipped with twin Pratt & Whitney PW1100G-JM

The newest member of the Airbus commercial aircraft family will be making its first airshow appearance at the 2014 Farnborough International Airshow taking place between 14-20th July. The A350 XWB will take part in the flying and static display for the first part of the week while the A380 will be on display throughout the week.

A Qantas Airbus A380 had to turn back while in flight after a water-pipe started leaking from the above floor and soaking a section of the bottom floor of the aircraft.

https://www.facebook.com/photo.php?v=571016523006970

Airbus chief executive Fabrice Bregier has voiced growing support for plans to upgrade the A330 to sharpen its contest with Boeing. In European newspaper interviews published on Tuesday, Bregier said there were predictions of strong demand for an enhanced version of the A330. The possibility is "growing every day" that Airbus will go ahead with the A330neo, though not necessarily at next week's Farnborough Airshow, he told the Financial Times. The newspaper quoted him as saying it might be possible to sell more than 1,000 of the updated aircraft.

Airbus has drawn up plans to revamp the A330 to preserve a second front in its competition with the delayed Boeing 787 Dreamliner while it prepares to introduce the A350. It said over the weekend it had not decided whether it would launch the A330neo at the July 14-20 Farnborough show. Interviewed by France's Les Echos, Bregier said the industry's largest showcase event fell "a bit early" for the project and that launching it there is "not an objective".

Industry sources have said the definition of the 250-300 seat jet is broadly complete, notably the selection of Rolls-Royce as sole engine supplier for the aircraft, which would offer new wingtips and fuel savings of 14-15 percent. Bregier has been seen as cautious about the USD$2 billion project as Airbus faces increases in production elsewhere, but has been progressively more enthusiastic in public since the Berlin Airshow in May. In an interview with German daily Handelsblatt, Bregier repeated that Airbus would make an announcement by the end of the year should it decide not to launch the A330neo.

Bregier also called on the European Central Bank to take steps to devalue the euro to help exporters who are being hit by its strength. "It should do what the Japanese did last year and what the Americans have been doing the whole time... It is not fate that the euro shoots through the roof while the American and Japanese use their currencies to support industry," he told Handelsblatt. "I am not talking about a huge devaluation, I am talking about 10 percent," Bregier said, adding that all European exporters would be fine at an exchange rate of USD$1.20 to USD$1.25 while currently the rate is about USD$1.36.

(Reuters)

Airbus has denied a report of an imminent deal to sell 200 aircraft to Indian airline IndiGo. Bloomberg said in a report published on Thursday that IndiGo was in talks with Airbus to order 200 additional A320neo jets valued at about USD$20.6 billion, citing people familiar with the plans. "Rumours of a deal are unfounded," an Airbus spokesman said, but added, "We are always in talks with our customers."

Bloomberg said the deal could be announced as early as next week at the Farnborough Airshow, adding that while IndiGo had talked to Boeing, the airline's preference was to stick with Airbus. A spokeswoman for IndiGo declined to comment on the report.

(Reuters)

Airbus will both upgrade and rebrand its A330 passenger jet at a launch expected to kick off next week's Farnborough Airshow, people familiar with the matter said on Friday. The A330-800neo and A330-900neo will be upgraded versions of the A330-200 and A330-300 respectively and include some cabin improvements and 400 nautical miles more range. The announcement is likely to highlight a 14 percent fuel efficiency increase and a new version of the Rolls-Royce Trent engine.

Airbus declined to comment.

"We do not comment on the usual air show noise," a spokesman said. Leasing companies are expected to be among the initial buyers, but it was not immediately clear whether the launch would be subject to further board approvals. In service since the 1990s, the A330 is Airbus's best-selling wide-body jet. Sales have been stronger than expected recently due to delays in producing the newer Boeing 787. But that advantage is evaporating and Airbus now wants to refresh the design in order to defend its position in the lucrative 250-300-seat market.

Its arrival is expected to spark greater price competition for sales at the lower end of the market for wide-body jets. Anticipating an air show move by its rival, Boeing said on Thursday the A330 upgrade papered over a series of strategy changes after Airbus counted on its future A350-800. Sales of that jet have been disappointing, with just 34 left on order. The name change appears designed to smooth that transition, but Airbus is also keen to distinguish between the current A330, which will remain on sale for regional trips, and the "neo" which will be pitched as a step towards the newer A350.

There had been some speculation that Airbus might call it after the A350 for that reason, but borrowing the name of a different aircraft family can pose branding and certification problems or clash with airlines' pilot union agreements. The engine, a modified Trent 1000-TEN, will be dubbed Trent 7000, sources said. The numerology of aircraft models is virtually a science in itself and is watched closely in some key markets such as China. Boeing also uses the 800/900 tag, or more recently 8/9.

"Rebranding the A330 (and)... adopting the more modern -800/-900 speaks to the significant upgrade of the airplane," said aviation analyst Scott Hamilton. "It speaks to adopting new technology and is consistent with the sub-type branding of the A350." Details are also emerging of what the A330 redesign, which is still under wraps, will look and feel like to passengers.

The A330neo will have between 252 and 306 seats, slightly more than the Boeing 787-8 or 787-9, and 10 more than the current A330, according to an airline briefing. In terms of performance, airlines have been told the smaller version of A330neo will have the same range as the Boeing 787-8, while the larger variant will lag the 787-9 by 1,000 miles. Airbus says most airlines don't need the 787's range or some of its features such as larger windows. Boeing says 787 is more comfortable and efficient, whatever length of trip is considered.

(Reuters)

PR from Airbus regarding the A330neo

Following a decision by the Board of Directors of the Group, Airbus has launched the A330-800neo and A330-900neo, two new members of its Widebody Family, which will incorporate latest generation Rolls-Royce Trent 7000 engines, aerodynamic enhancements and new cabin features. Benefitting from the unbeatable economics, versatility and high reliability of the A330, the A330neo reduces fuel consumption by 14% per seat, making it the most cost efficient, medium range Widebody aircraft on the market. In addition to greater fuel savings, A330neo operators will benefit from a range increase of up to 400 nautical miles and all the operational commonality advantages of the Airbus Family. Deliveries of the A330neo will start in Q4 2017.

“The A330 is a very important margin contributor for our Group. It’s also one of the most reliable and efficient commercial aircraft ever. Customers love it. With our decision to re-engine the plane, we will keep the A330 flying high for many more years to come. The development costs for the A330neo will be incurred from 2015 to 2017 with an impact of around -70 basis points on Airbus Group’s 2015 Return on Sales target. However, we have a very good business case and the A330neo, once in service, will continue to significantly contribute to our group’s earnings,” said Tom Enders, CEO of Airbus Group.

“The A330neo is the logical evolution of our reliable and versatile A330 Family. It provides an optimal solution for airlines around the world looking to minimise their fuel and operating costs while offering best-in-class comfort to their passengers,” said Fabrice Brégier, Airbus President and CEO. “We see strong market potential for the A330neo, and like its market-leading smaller sister, the A320neo, we are confident this new aircraft will be a success in the medium-haul segment. We are again leveraging a proven aircraft with a wide operator base and making it even more efficient with the latest innovations and technology developments.”

In addition to the new Rolls-Royce Trent 7000 engines, the A330neo will feature incremental innovations, including aerodynamic enhancements such as new A350 XWB inspired winglets, an increased wing span and new engine pylons. Pilots will benefit from latest generation cockpit systems, and the already very comfortable A330 cabin will be further optimised to offer up to ten additional 18 inch wide seats. Passengers are winners too, as they will be able to enjoy a 21st century on-board experience with for example, fourth generation In Flight Entertainment (3D films), mood-lighting and full connectivity.

Japanese aircraft leasing company SMBC Aviation Capital has signed a firm order for 110 A320neo and five A320ceo planes in a deal worth around USD$11.8 billion at list prices.

Russian carrier Transaero has signed a letter of intent to buy 20 Airbus A330 aircraft, including 12 A330neos, in a deal worth USD$5.3 billion at list prices. Airbus said that an undisclosed Asian customer had also signed a memorandum of understanding for four A330-800 jets. Airbus said it had won "USD$75.3 billion worth of business for a total of 496 aircraft" at this year's air show. The deals include memoranda of understanding for 138 aircraft worth USD$36.9 billion and purchase orders for 358 aircraft worth USD$38.4 billion, Airbus said.

(Reuters)

Airbus expects to win at least one order from the Middle East for the upgraded A330neo before the end of the year, its sales chief John Leahy said. "I certainly see a home for the A330neo in the Middle East," Leahy said when asked whether an airline such as Etihad could be interested in the jet. Airbus closed the Farnborough Airshow taking place this week with total orders and commitments for 496 aircraft, including 121 for the A330neo, which was launched on Monday. Airbus CEO Fabrice Bregier said it was too early to say how many of the new planes could be produced a month.

(Reuters)

Gearing up for the first flight of the Airbus A320neo.

Emirates could buy an additional 60 to 80 Airbus A380s if the aircraft is updated with more fuel-efficient engines, the airline's chief executive Tim Clark said, according to the Financial Times. Emirates, the largest customer for the Airbus A380, had ordered 140 of the aircraft as of November.

"We have made it crystal clear to (Airbus) in the event of the (A380) neo being launched we would buy it," the FT quoted Clark as saying. Emirates has previously expressed interest in applying the lessons of other Airbus re-engining projects - nicknamed 'neo' or new engine option - to the A380. Such a project would involve an upgraded engine from Rolls-Royce, as well as some weight reduction and better aerodynamics on the aircraft.

(Reuters)