As Some A350 Activities Stall, Others Advance

There is starting to be a routine to this: as Airbus and Boeing advance development of new products, their family concepts start to shrink. When the Airbus A380 ran into production problems, the freighter version was scrapped and the stretch -900 was kicked into the long grass. The Boeing 787-3 was stillborn even as the -8 and -9 advanced. Now the A350 is experiencing a similar evolution. As the manufacturer focuses on birthing the -900 and designing the -1000, the third family member, the -800, is dying of benign neglect. Airbus officials insist that the -800 remains a member of the A350 family. However, John Leahy, chief operating officer for customers, stresses that while production slots are scarce, he is focused on selling the higher-margin -900. In fact, there is an effort underway to convert -800 buyers to the -900. Airbus has 118 firm orders for the -800, which is currently due to emerge in 2016. Similarly, A350 Program Executive Vice President Didier Evrard says there is a clear emphasis on the -900, the lead platform in the program. The next priority is the -1000, the aircraft with which Airbus hopes to break the dominance of Boeing's 777 in the twin-long-haul segment. The -800's wane is compounded by concerns among potential customers about its performance and per-seat costs. In analyzing future fleet requirements, one airline executive found the -800's per-seat costs were no better than the Boeing 767's, let alone the A330-300's. At the same time, just bringing the -900 out of development is at a critical stage. “The next two years are going to be extremely important,” Evrard says. First customer delivery of the -900 is planned for the first half of 2014, and it is moving closer to the middle of the year than the start, he acknowledges. Despite the move taken last year to delay the initial in-service date to 2014, the -900 schedule is tight. Some elements are running ahead of schedule but there are signs of slippage in other areas. While the wings for the static-test elements are due in July, delays may push them into August. Airbus is using a new wing-assembly process to take advantage of greater automation. “It is slower than we thought it would be,” Evrard concedes, but he says it will be a huge boon in high-rate production.

Airbus To Maintain Current A320 Build Rate Until NEO Launch

Airbus is unlikely to increase narrowbody production rates any time soon due to concern over supply chain capabilities. The aircraft maker currently builds 40 narrowbodies a month and is aiming for a monthly production rate of 42 in October. Last year, the company considered building the rate to 44 aircraft a month, but decided against the move, and now Airbus Chief Operating Officer for Customers John Leahy says he “tends to doubt” that increase will ever happen. Several factors influence Leahy’s judgment, including near-term supply chain concerns that are already affecting the increase in production to 40 A320 family aircraft a month. But long-term rates are likely to go up. Demand for the re-engined NEO has been so strong that building even 44 aircraft in 2017 or 2018 “is not enough,” says Tom Williams, Airbus executive VP-programs. Because of this, Airbus is already instructing suppliers to prepare for increased production. Airbus has recorded more orders for its NEO than Boeing has for its 737 MAX, and though Leahy acknowledges that Boeing is likely to book more MAX orders this year than Airbus will for the NEO, he expects the European manufacturer to own 60% of the market. Leahy notes the A320 also does not appear to be affected by China’s ban on aircraft orders from Europe in response to the European Union’s emissions trading system, noting that widebody orders were the target and that negotiations are ongoing for more than 100 A320 family orders. Meanwhile, development of the NEO continues, with first metal cut due in July, Williams says, and certification for the A320 winglet, or sharklet, expected by year-end. The first aircraft will be a CFM56-powered A320, with other models in the family to follow. Two retrofit programs are being developed to ensure there are no production issues with the 2.4-meter-high wingtip devices, including a reinforced wing and wingbox installed on new-production models to allow for a “plug-and-play” swap of the wingfence with sharklets at Rib 27. A more extensive retrofit is required for older aircraft to reinforce the wing, a program that is scheduled to begin in the second half of 2013, possibly using a customer aircraft. The winglet design will be the same, but the retrofit aircraft will not have the same weight savings now being phased in on new A320s, with several hundred kilograms added to each aircraft.

John Leahy: Boeing 777-300ER Cannot Compete With A350-1000

The Airbus A350-1000 will beat the Boeing 777-300ER on range and fuel burn per passenger, but demand for the A350 is outstripping availability, Airbus COO-customers John Leahy said Wednesday during a media briefing in Toulouse, France! Even though there have been no new orders for the A350-1000 since 2008, Leahy was bullish about its prospects. “Boeing only started talking about a new 777X after the A350-1000 came out,” he said. “Boeing knows the 777 won’t compete and that’s why they talk about folding wings and crazy things like that,” he said. He said the most common question that he gets asked is “when can I get availability on the A350?” Airbus has a total of 548 firm orders for all A350 variants, including 62 for the -1000. Asiana Airlines, Emirates, Etihad and Qatar Airways are -1000 customers. Leahy said that the -1000 will have 600 nautical miles more range than the 777-300ER and will operate using 25% less fuel burn per passenger. However, A350 production slots are very limited because “we have so much on our plate right now,” he said. Nevertheless, Leahy said the company expects to log sales for 30 A350s this year—the majority of which will be for -900 and -1000 variants. 

Airbus To Retrofit Wings On 120 A380s

Airbus will have to retrofit 120 A380s to resolve a problem with wing component cracking before a permanent fix will be implemented on new-build aircraft! The aircraft maker has already delivered 74 A380s, but the total number in need of retrofit will grow to 120 aircraft because of work already in the production system, says Tom Williams, Airbus’s executive VP-programs. Current Airbus A380 operators are Singapore Airlines, Emirates, Qantas, Air France, Lufthansa, Korean Air, and China Southern Airlines. Airbus has developed two fixes it says will permanently deal with the cracking of some rib-feet, which has already resulted in an airworthiness directive requiring enhanced inspection intervals and fixes where component cracking is found. One solution addresses the retrofit fix while the other alters the production process so the problem never occurs. The fixes should restore the aircraft to 19,000 flight cycles and regular inspection intervals, Williams says. Airbus expects the cost of resolving the situation to top €260 million ($327 million). There are several causes for the problem. One was the use of a specific aluminum alloy and its heat treatment; the alloy delivered weight savings, but the component was more brittle, causing cracking. Another problem occurred in attaching the wing skin to the ribs, where excessive loads were placed on components during assembly. The problem was compounded by a failure to properly account for the temperature-induced material expansion and contraction during operations. The European Aviation Safety Agency still has to approve the repairs, which Airbus will need to validate in-flight trials using an instrumented Airbus A380 test aircraft, which Williams expects to be flying in the fall. To avoid future problems, Airbus has decided to make changes beyond those immediately needed. For instance, Rib 48 and Rib 49 at the outer end of the wing will be replaced even though they have not shown cracking because they are made of the same alloy that has caused problems. The ribs will be replaced with ones made of a more traditional alloy. Airbus is now deliberating how it will implement the retrofit and is in discussions with its airline customers. Options include parking the aircraft several weeks to fully install the fix, or a phased enhancement during several C-checks. The repair comes with a relatively modest 90 kg weight penalty.

American Airlines Announces Initial Boeing 777-300ER Schedule

American Airlines today announced the flight numbers and markets for its first group of Boeing 777-300ERs that will enter the airline's fleet starting this December! On Dec. 13, the Dallas/Fort Worth – Sao Paulo route will be the first to feature the newest addition to American's fleet. In February, the aircraft will fly to London Heathrow from both Dallas/Fort Worth and New York JFK.  American is the first U.S. airline to order and take delivery of the Boeing 777-300ER. The 777-300ERs will complement American's fleet by offering additional network flexibility in the future, as well as providing increased efficiency due to better seat mile economics and performance characteristics.Below is a schedule for initial routes that will feature the 777-300ER. These schedules will appear in global distribution systems this week.

Market	Flight	Frequency
Dallas/Fort Worth – Sao Paulo	AA963/AA962	Tuesday, Thursday, Saturday – southbound; Wednesday, Friday, Sunday –  northbound [Dec. 13 through Dec. 31]
Dallas/Fort Worth – Sao Paulo	AA963/AA962	Daily except Monday – southbound; Daily except Tuesday – northbound [Jan. 1 through Jan. 30]
Dallas/Fort Worth- Sao Paulo	AA963/AA962	Tuesday, Thursday, Saturday – southbound; Wednesday, Friday, Sunday – northbound [Jan. 31 through Feb. 13]
Dallas/Fort Worth – London Heathrow	AA50/AA79	Daily [Jan. 31 through Feb. 13]
Dallas/Fort Worth – London Heathrow	AA50/AA51	Daily [Feb. 14]
New York JFK – London Heathrow	AA100/AA101	Daily [Feb. 14]
Dallas/Fort Worth – London Heathrow	AA78/AA79	Daily [March 2 through March 31]
New York – JFK – Sao Paulo	AA951/AA950	Daily [April 2]

"American is proud to be among the first in the industry to offer a combination of fully lie-flat seats with all-aisle access, international Wi-Fi, and top-of-the-line in-seat entertainment," said Virasb Vahidi, American's Chief Commercial Officer. "On Dec. 13, our customers can experience these firsts on flights between Dallas/Fort Worth and Sao Paulo." As part of its international widebody strategy, American anticipates taking delivery of 10 Boeing 777-300ERs beginning in December 2012. The 777-300ERs will be configured as three-class aircraft and will include fully lie-flat First and Business Class seats, Main Cabin Extra, and Wi-Fi capability to keep customers connected while traveling internationally. The three-class cabin configuration in the new 777-300ER will provide American with more customers and cargo capacity than any other aircraft in its fleet today. Customers will be welcomed into the aircraft by unique mood lighting. American will be the first airline to use a dramatic archway and ceiling treatment on the 777-300 to create a feeling of spaciousness. A walk-up bar in the premium cabin stocked with snacks and refreshments will be a first for any U.S. airline and adds another unique element of luxury to the 777-300. Entertainment options include up to 120 movies, more than 150 TV programs and more than 350 audio selections that will be offered throughout the aircraft. Also, every seat will feature individual 110-volt AC power outlets and USB jacks for charging personal electronic devices. For more information, visit www.AA.com/Fly777.

Alaska, Jetblue, Southwest, Virgin America Win Long Distance Routes Out of Washington National Airport

The US Department of Transportation on Monday awarded slots to four airlines to operate four new long-distance routes out of slot- and perimiter-restricted Ronald Reagan Washington National Airport! The winning airline-destination combinations are:Alaska Airlines: Portland, Oregon (Boeing 737-800)JetBlue Airways: San Juan, Puerto Rico (Airbus A320)Southwest Airlines: Austin, Texas (Boeing 737-800)Virgin America: San Francisco (Airbus A319)The slots will allow each airline to operate one daily round-trip to and from their designated destination. Flights into and out of Reagan National are prohibited from flying routes longer than 1,250 miles without a exemption granted by Congress. Carriers that either had no or little service at Reagan National were asked to submit applications for the new slots over the past couple of months, along with petitions of public support. Virgin currently has no service at Reagan National, while Alaska, JetBlue and Southwest offer only a handful of flights. All winning airlines plane to launch their new routes within the next several weeks. US Airways formerly owned these slots, but was forced by the DOT to divest them as part of a deal in which US swapped hundreds of slots with Delta at Reagan and LaGuardia. An auction 16 LaGuardia slots divested by Delta concluded in November 2011. Earlier, the DOT granted four exemptions to the airport’s larger carriers, who must use existing slots:American Airlines: Los Angeles (replaces a Dallas-Fort Worth flight) (Boeing 757-200)Delta Air Lines: Salt Lake City (replaces a New York-LaGuardia flight) (Boeing 737-800 westbound, 757-200 eastbound)United Airlines: San Francisco (replaces a Chicago-O’Hare flight) (Boeing 737-700)US Airways: San Diego (replaces a Dallas-Fort Worth flight)With seven airlines applying for nine routes and only four awards to be won, there were some losing proposal:Alaska Airlines: San Diego (Boeing 737-800)Sun Country Airlines: Las Vegas (Boeing 737-700)JetBlue Airways: Austin (Embraer E190)Frontier Airlines: Colorado Springs (Airbus A320)Air Canada: Vancouver (Airbus A319)

Delta to Take Delivery of Airtran Boeing 717 Aircraft Upon Ratification of Pilot Tentative Agreement

Delta Air Lines will begin taking delivery of Boeing 717 aircraft as early as 2013 upon ratification of a new tentative agreement covering Delta's more than 12,000 pilots! The tentative agreement was approved on May 21 by the Master Executive Council (MEC) of the Delta Air Line Pilots Association (ALPA), and now will be presented to pilots for review and ratification through June 30. The tentative agreement provides career growth opportunities as well as pay and benefits improvements for Delta pilots, while providing Delta productivity gains and additional aircraft flexibility, including an opportunity to accelerate its domestic fleet restructuring to provide a better customer travel experience. If ratified, the agreement will accelerate Delta's domestic fleet restructuring strategy. To this end, Delta has reached an agreement in principle with Southwest Airlines and Boeing to lease 88 Boeing 717 aircraft currently in service at Southwest subsidiary AirTran Airways that is conditioned upon pilot ratification of the tentative agreement. Southwest, which operates an all-Boeing 737 fleet, saw little benefit in keeping AirTran’s 717s after it took over the airline in 2011. Southwest would sublease the jets to Delta through Boeing’s finance arm, Boeing’s Capital Corp. Deliveries would begin in 2013 and stretch through 2015. The aircraft will primarily replace inefficient 50-seat regional jets like the Bombardier CRJ Series and some older McDonnell Douglas DC-9 aircraft still in service, on a capacity-neutral basis. The tentative agreement also provides Delta with additional flexibility to acquire up to 70 larger two-class, 76-seat regional jets as the Boeing 717 aircraft are delivered to Delta. Delta currently operates 255 larger two-class regional jets; the fleet will be increased to 325 aircraft. "These actions pave the way for us to restructure and upgauge our domestic fleet, which will lower our costs, provide more pilot jobs and improve the onboard experience for our customers," said Delta CEO Richard Anderson. "The addition of the Boeing 717s, additional large regional jets and the planned replacement of 50-seat aircraft continue Delta's commitment to operating an efficient, flexible domestic fleet that offers customers even more opportunities to upgrade to our First Class and Economy Comfort cabins."  In addition to aircraft flexibility, the tentative agreement will provide for productivity enhancements as well as improvements to the total compensation package for Delta pilots, including increases to base pay. The agreement also provides for a modification of the profit sharing program for pilots so that it pays 10 percent of profits, compared with 15 percent today, on the first $2.5 billion of profits effective Jan. 1, 2013. The plan will continue to pay 20 percent of profits above $2.5 billion. A voluntary early retirement option recently offered to Delta's other employee groups also will be available to Delta pilots upon ratification of the tentative agreement. "Delta, our pilots and ALPA continue to benefit from a very constructive, proactive relationship, one that is unprecedented in our industry," said Mike Campbell, executive vice president – Human Resources and Labor Relations. "This tentative agreement represents an investment in our pilots and our company as it gives Delta significant fleet flexibility, the ability to continue running a reliable operation for our customers, and a profitable enterprise for shareholders and for all Delta people. The fleet changes provided by this agreement, coupled with the productivity and profit sharing changes, cover the investments in our employees. "We strongly support the Delta MEC's endorsement and are optimistic that Delta pilots will ratify the tentative agreement," Campbell said.  Pilots have approximately five weeks to review and ratify the tentative agreement. If approved by the June 30 deadline, the agreement would take effect July 1, 2012. The agreement becomes amendable Dec. 31, 2015. Negotiating committees for Delta and ALPA announced on May 15, 2012, that a tentative agreement had been reached. During the next several days the tentative agreement was reviewed and subsequently approved by the Delta MEC on May 21.