Odds and Ends: Bombardier lands Delta’s RJ deal; 787 events in perspective; Airbus/China; Enders victory
Delta Air Lines: Bombardier, in a welcome development, landed a major order with Delta for 40+30 CRJ900s, beating out Embraer’s E-Jet proposal. Delta has a large, installed base of CRJs and EMB wasn’t too optimistic, in management-analysts meetings last week, according to research notes. But BBD liked its odds, considering the CRJ is more fuel efficient than the E-Jet (being a small airplane), even if the E-Jet is far more comfortable.
For BBD, the order is important for two reasons. First, the CRJ backlog is shrinking. Deliveries begin 2H2013, and this illustrates the point. Second, with BBD sucking up cash in advance of CSeries first flight in 1H2013, the deposits, progress payments and delivery payments are welcome, indeed.
The next face-off between the two OEMs is American Airlines, where both have large installed RJ fleets of aging aircraft.
Boeing 787 events: Airworthiness Directive. “Emergency” landing. AirInsight puts things into perspective.
Airbus lands China orders: Hmm. EU suspends plans to impose ETS tax. Airbus lands orders for 60 A320s and 10 A330s. What do you make of that…
Enders now 1-1, sort of: Tom Enders, CEO of EADS, lost his bid to acquire BAE Systems due to German government interference. The merger would have reduced government meddling, balanced EADS commercial and military business, put EADS on a more equal footing with Boeing and positioned EADS better for US DOD contract bids. But Enders has now won a corporate governance restructuring that ends government meddling in daily operations. He still hasn’t achieved his other goals, but this one is so huge that we rate Enders’ won-lost record 1-1.
Boeing and its engineers’ union, SPEEA, suspended talks Dec. 4 until after the first of the year at the request of the federal Mediator.
Boeing and SPEEA issued terse statements citing the Mediator but adding no comment of their own:
WASHINGTON, D.C. – Federal Mediation and Conciliation Service Director George H. Cohen issued the following statement today on the ongoing labor negotiations between the Boeing Company and the Society of Professional Engineering Employees in Aerospace:
“At the request of the Federal Mediation and Conciliation Service, negotiations between The Boeing Company and the Society of Professional Engineering Employees in Aerospace (SPEEA), IFPTE Local 2001 are being suspended until after the first of the year. Both sides agreed to this mediator request.”
“In the interim, the FMCS will be in discussion with the parties to schedule resumption of negotiations.”