Qatar wants to be first 787-10 customer; praises EU for ‘face-saving’ freeze of ETS

Akbar Al-Baker, the CEO of Qatar Airways, said he wants to be the first customer for the Boeing 787-10. He has some competition for this status.

Boeing is talking with customers now for the new sub-type, which is expected to get the Board go-ahead this month. Air Lease Corp., British Airways and Singapore Airlines have widely been identified as likely launch customers in market talk.

Also at the delivery ceremony for Qatar’s first 787-8, Al-Baker praised the European Union for freezing plans to impose its carbon trading scheme called ETS. He termed the move “face-saving,” noting that several countries ordered their airlines to refuse payment, led by France China.

“This was a very wise decision,” Al-Baker said.

EU caves on ETS, for now–but says it didn’t really cave

The European Union caved in on implementing the carbon trading scheme known as ETS that would have taxed international airlines flying into Europe.

The EU claimed it didn’t really cave to international pressure (Financial Times, free registration required) but clearly it did. China was the first country to tell its airlines not to pay. This was followed by counties in the Middle East, India and the US Senate. But we’re going to give credit to China, not only as the leader but a country which adeptly uses its strength in ordering-or not-aircraft from Airbus or Boeing as political tools.

China put on hold ordering $14bn worth of Airbuses, notably 35 A330s. Airbus froze production rates pending this order–which means a loss of jobs.

As countries protesting the unilateral ETS scheme noted, such taxation should come from international agreements through the airline organization ICAO.

What is so annoying about the ETS scheme is that the taxes would go into the countries’ general fund and not be applied to environmental improvements.

 

Odds and Ends: 787 fuel savings at ANA; Airbus will benefit from Boeing

ANA 787s: Market Watch quotes an ANA official saying the Boeing 787-8 is saving 21% in fuel over eh previous airplanes. The article didn’t ID the previous planes, but they were the Boeing 767-300ER. Note, too, that the initial 787-8s are heavy and with Rolls-Royce engines that don’t initially meet specs.

Airbus to benefit from Boeing: The latter is closing its Wichita operations. The former will likely hire some of Boeing’s soon-to-be-out-of-work engineers. Here’s the article. Note that former Kansas Sen. Sam Brownback, who is now governor, was present garbed in Airbus colors. This is the same Brownback who couldn’t diss Airbus enough during the EADS-Boeing tanker competition. Now Airbus seems to be Brownback’s best friend.

China-EU showdown over ETS: China continues to refuse to comply with the European Union’s demand that carbon emissions information be provided. China, which already refused to firm up orders for 45 Airbus A330s, threatened to impound European airplanes if the EU retaliates against China’s refusal to comply.

Air Lease Corp to order MAX: Steve  Udvar-Hazy, CEO of the lessor, plans to order the 737 MAX within the next few weeks. Boeing wants to firm up orders from ALC, CIT Aerospace, ILFC, GECAS and Aviation Capital Group by or at the Farnborough Air Show.

WTO appeals panel upholds Boeing subsidy findings

Word is leaking out in advance of Monday’s public release of the appeal of a WTO finding that Boeing benefited from illegal subsidies that the appeals panel upheld the findings.

Additional reports: Here and here.

Boeing has previously said on several occasions that if the WTO found it received illegal subsidies, it would write a check. We’ll see what spin occurs next week on this point.

The European Union claims Airbus has now conformed with the WTO findings against it, a claim rejected by the US Trade Representative and Boeing.