Home' Asian Aviation : AAV July August 2011 Contents Andrzej Jeziorski
is year s Paris Air Show yielded a windfall of aircra orders
the likes of which has not been seen since before the world s
economy toppled towards recession in 2008.
Airbus, in particular, had reason to celebrate -- collecting
commitments during the show for no fewer than 730 aircra ,
valued at a combined US$72.2 billion at list prices. " is success
sets a new record for any commercial aircra manufacturer at
any air show ever," the manufacturer said.
e vast bulk of these were for the re-engined A320neo
narrowbody. at model secured 667 commitments for a total
value of about US$60.9
billion, bringing the
order book for the neo
to an impressive 1,029
units in the six months
since the programme was
US rival Boeing was no slouch, either. e company racked
up orders and commitments for 142 aircra from across the
Boeing family -- including single-aisle Next-Generation 737s,
767s, 777s, 787s and 747-8s -- valued at more than US$22
billion at list prices. e company called its order total "a
powerful validation of the demand for Boeing s fuel-e cient
and market-leading products".
In the meantime, smaller manufacturers such as Bombardier
had their own success stories, with new customers emerging for
the Canadian manufacturer s business jets and its new single-
aisle o ering, the CSeries, which -- among other successes --
gained its rst Asia-based customer: Korean Air.
But one thing that Paris did not yield -- contrary to the
expectations of many -- was any indication from Boeing as to
how it would respond to the challenge posed by the A320neo in
the single-aisle market. Many obser vers thought Boeing would
either announce plans to re-engine its 737 family or give details
of an all-new single-aisle proposal. Instead, the manufacturer
remained silent on the subject.
It became increasingly clear, however, that Boeing customers
are hoping the company will forge ahead with an all-new design.
Among them was the
Lease chief Steve Udvar-
Hazy, who told the
Seattle Times: "We re
ready to sit down ... and
airplane, that s how strongly we feel."
An all-new design could yield a 20 percent improvement
in fuel-burn, compared with the 15 percent bene t Airbus is
o ering with the neo. However, the US manufacturer appears
worried that the break in commonality with the current 737NG
family, combined with the large investment and the amount of
time needed to get a clean-sheet model o the ground could
cost the company a substantial amount of market share -- and
that is a chance Boeing appears unwilling to take, with Airbus
aggressively working to lock in A320 operators for another
decade and Bombardier busily touting its all-new CSeries.
Paris show stirs optimism, caution
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Airbus, in particular, had reason to
celebrate -- collecting commitments during
the show for no fewer than 730 aircraft.
Giovanni Bisignani has moved on from his post as Director
General and Chief Executive -- and o en prophet of doom - of
the International Air Transport Association (IATA).
As of the beginning of July, he yielded his post to former
Cathay Paci c Air ways head Tony Tyler, who took the reins of
the organisation while promising to be a "strong advocate" for
its 230 member airlines.
But Bisignani was anything but silent in his nal month at
the helm of the industry group. In early June, IATA slashed its
2011 airline industry pro t forecast -- again -- by a whopping 54
percent. e gure dropped from the US$8.6 billion predicted
in March to just US$4 billion.
With anticipated revenues of US$598 billion, the pro t
implies a margin of 0.7 percent, a gure Bisignani described
e latest cut in the forecast was attributed to the March
earthquake in Japan, political unrest in the Middle East and
North Africa and a sharp rise in oil prices.
" at we are making any money at all in a year with this
combination of unprecedented shocks is a result of a very fragile
balance," the outgoing IATA chief said.
e Asia-Paci c will be the world s most pro table region for
airlines this year, with carriers expected to earn US$2.1 billion
-- but that s still about a h of what they earned in 2010. Once
again, the main engines of the Asia-Paci c s strength are China
and India, which will make the region the only one this year
where growth in demand will outpace capacity.
Bisignani hands over reins at IATA
The article 'MRO providers adapt to airline needs' in
Asian Aviation's June issue, included the following
paragraph attributed to Dominik Wiener-Silva,
Lufthansa Technik Philippines vice-president for
marketing and sales:
'Wiener-Silva added that, nevertheless, operators may
consider deferring non-critical MRO work, such as
cabin modification and painting as they strive to cut
In fact, Wiener-Silva said: "Aside from routine
maintenance, operators might now put attention to
deferred non-critical MRO works during the crisis i.e.
cabin modification, painting."
Asian Aviation apologises for the error.
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