Page 9 - AAA APRIL - MAY 2017 Online Magazine
P. 9

FeAtUre singLe AisLe






















                                                                                The  low-cost  arm  of
                                                                                Garuda    Indonesia,
                                                                                Citilink received the
                                                                                first of 35 A320neos
                                                                                in February. Citilink’s
                                                                                A320neos  will  be
                                                                                powered  by  CFM
                                                                                Leap-1A engines and
                                                                                the aircraft will be
                                                                                configured in a 180-seat
                                                                                single-class layout

        Agreement with LCCs have 18 per cent share.   Still, fuel burn and reliability are good and   that they like the performance of the engine
        But by 2014 that number had grown to 156   we  see  nothing  that  appears  to  be  more   and are confident that early stage problems
        with the LCC share at 29 per cent. Clearly   than a teething issue.”  The real problem is   will be resolved. Customers report that
        from the Boeing and Airbus numbers there   the rate ramp, with fan blade assembly still   fuel burn is at or better than expectations
        is enormous growth potential for the single-  an issue and problem acknowledged by   and noise and emissions are good, as is
        aisle market.                       Airbus CEO Tom Enders in a recent interview   reliability.  Boeing’s  sales  prospects  are
                                            with Barron’s Asia. “We have thousands   expected to lift with the certification of
        Capturing the Market                of suppliers,” Enders told Barrons. “It is   the first variant the MAX 8 on March 8 just
        The question is which single-aisle will   inevitable that some suppliers will face   a day after the roll-out of the first MAX 9
        dominate.  At the moment, Airbus is well   challenges. It doesn’t help when you are in a   and a firming up of the MAX 10 offering. The
        ahead  of  Boeing  in  backlog  with  major   critical situation to just beat up on suppliers,   certification took just over a year with four
        Asian LCCs. According to a Bernstein report   or insist on contract. You can only increase   aircraft. Boeing’s Product Development
        Commercial Aircraft: Positions – Airbus and   the ramp-up if your supply chain can follow.”   organisation is working on validation tests
        Boeing; Asia-Pacific Perspectives published   But the supply problem is only a glitch   for  a  re-design  of  the  main  undercarriage
        in November the aggressive Airbus strategy   and does not detract from the A320neo   to accommodate the longer length. It had
        toward Asian LCCs started roughly ten years   which  is clearly an outstanding aircraft    initially settled on a trailing-link design but
        ago, “While it appeared high risk at the time,   and  the  latest  model  in  a  design  that  is   is looking at other configuration options. The
        it has been high reward, as growth benefits   celebrating its 30th year. In the Asian region,   MAX 10 will have two fuselage plugs to add
        from carriers like AirAsia, IndiGo, and Spring   as would be expected Airbus has the lead in   67 inches to its length to 143 feet, enabling
        have more than offset the downside of some   the NEO vs MAX stakes. Airbus has secured   230 seats in a single class or 189 in two-class
        failures,” says Bernstein. It adds that over the   over 2,400 orders versus Boeing’s 1,450   capacity. Boeing is currently building the 737
        next five years, global single-aisle deliveries   orders.   This difference says Bernstein “is   at 44 a month and that rate is being moved
        will be split evenly between Boeing and   accounted for by the previous alignment   up to 47 in the third quarter of this year. The
        Airbus, but Airbus appears to be modestly   of Asia-Pacific LCCs toward Airbus and the   rate will be stepped up to 52 in 2018 and 57
        advantaged longer term. Bernstein says that   fact that the NEO entered service roughly   in 2019. At Airbus, the A320 rate is at 46
        the  “A320neo continues to  face challenges   18 months ahead of the current plan for   and will lift to 50 for 2017 and 2018 before a
        with the Geared  Turbofan engine (GTF),   the MAX.” Bernstein notes that “on the   significant jump to 60 in 2019. Despite those
        although the engine is meeting or exceeding   A320neo, the LEAP has been the leading   extraordinary rates, Airbus and Boeing face
        performance objectives.” “Initial problems   choice in the region with CFM winning 1,054   intense pricing competition with no less than
        (cooling time, FADEC messages) have been   LEAP-powered orders versus Pratt’s 651   four new regional designs – MC21-300, C919,
        resolved, with some additional issues (e.g.   GTF-powered  orders  with  722  airplanes   MRJ-90 and E190 - entering service over the
        combustor hot spots) that have led to   are undecided at this stage. On the GTF   next three years and the CS100/300 is now
        replacement of engines at GoAir and IndiGo.   Bernstein says “customers have said to us   being delivered.
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