News

Russia Can’t Fly Without the West—but May Eventually Propel China

Details

Published: Wednesday, 09 March 2022 23:44

Sanctions will devastate Russian aviation by denying it access to Boeing and Airbus parts. They will also give fresh impetus to efforts with China to develop alternatives to Western technology.

Boeing and Airbus dominate global aviation, but China’s Comac wants to challenge the duopoly with new planes. WSJ’s Jon Sindreu explains how supply chains, technology and geopolitics could help the Western aircraft makers to protect key markets. 

Russia’s increasing isolation from the West will leave it looking towards China for alternative economic partnerships. Aviation is a prime example: Badly hit by sanctions, the Russian industry has little choice but to double down on collaboration with its big peer to the East.

Commercial aviation faces ruin in Russia because the U.S. and its allies have blocked the sale of aircraft, parts and technical support to the country. Since the 1990s, Soviet Union-era aircraft have been replaced by Boeing and Airbus models, with domestically built planes currently making up only 17% of the fleet, Cirium data shows. Without new parts, airlines like Aeroflot and S7 Airlines will eventually need to ground their jets.

Excerpt from WSJ
Read the full article 

The Logistics Behind Deicing Airplanes, Explained by an Expert

Details

Published: Monday, 28 February 2022 17:00

In a heavy snow, crews can spray up to 1,000 gallons of deicing fluid on an aircraft
Deicing an aircraft is a coordinated effort, involving multiple steps and a race against the clock. A United Airlines deicing expert explains the process and why it’s critical to keeping planes moving. 

Excerpt from WSJ
Read the full article 

Airbus’s Plan to Ramp Up Production of Bestselling Jet Hits Snags

Details

Published: Monday, 21 February 2022 17:00

World’s biggest plane maker tempers guidance on plans to dramatically increase production of A320s

Airbus SE tempered expectations for sharply boosting production of its bestselling jet, blaming supply-line challenges that threaten its ambition to rapidly widen a market-share advantage it opened with Boeing Co. BA -2.44% during the pandemic.

The plane maker reported record profit Thursday and said it would reinstate its dividend, benefiting from still-robust demand for its commercial airliners. But it dialed back the likelihood of dramatically boosting future production rates for its A320, the single-aisle rival to Boeing’s 737 MAX.

The 737 MAX suffered a long grounding after two deadly crashes, forcing a short-term halt to production. Then, amid the pandemic, Airbus pressed airline customers to honor contracts, further boosting its share of the single-aisle market.

The European plane maker has been bullish on the aviation sector’s eventual recovery, after pandemic travel restrictions hobbled many airlines. It told suppliers last year to be ready for a quick production ramp-up, promising to push out 65 A320s a month by the summer of 2023. It also said it had asked suppliers to explore whether it could raise that to 75 a month by 2025.

Excerpt from WSJ
Read the full article 

A More Conservative Airbus Can Gain Altitude

Details

Published: Thursday, 17 February 2022 21:59

If the world finally moves on from Covid-19 this year, the plane maker’s cautious financial guidance could prove easy to beat

A move by Airbus to fly under the radar could be a wise one.

Shares in the European plane maker initially rose Thursday, after it released encouraging financial results for the final quarter. Operating earnings were 11% above the median analyst estimate. Free cash flow, which is even more important for aerospace firms, was almost twice as high as expected for the quarter, and amounted to €3.5 billion, equivalent to $4 billion, for 2021 overall. That echoes a better-than-expected cash performance at Boeing, its American rival.

Yet Airbus stock edged down as European trading got under way. The broader travel sector came under pressure amid fresh jitters about a potential war in Ukraine, but it may also have to do with the company’s somewhat underwhelming guidance. Targets for 2022 include flat free cash flow and the delivery of 720 commercial aircraft.

While these aren’t bad numbers, some investors were expecting more. Airbus managed to surpass its 2021 goal of 600 planes by 11 units, and was delivering 860 planes before the pandemic. Executives sounded cautious when addressing analysts Thursday.

Excerpt from WSJ
Read the full article