With the announcement by Alaska Airlines for 20 737 MAX 8s, 17 737 MAX 9s (and 13 Next-Generation 737-900ERs), Airbus and Boeing continue their battle for the US market.
There are still a number of customers who have not ordered either aircraft. US Airways has been exclusively an Airbus customer. Airbus lost a hard-fought battle to Boeing in the competition for the A321-737-900ER order. ILFC orders seem to be on hold pending its Initial Public Stock offering.
|737 MAX||A320neo||No Order Yet|
|American*||Spirit Airlines||US Airways|
|Aviation Capital Group**||Frontier Airlines||Delta Air Lines|
|Air Lease Corp||Aviation Capital Group|
|*To be affirmed in bankruptcy court**Commitment, not yet converted to firm order||ILFC|
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.
The final panel at the ISTAT meeting is the much-anticipated lessors’ panel consisting of:
Jeff Knittle, president of CIT Aerospace, moderator;
Henri Courpron, Chairman of ILFC;
Ray Sisson, CEO of AWAS;
Norman Liu, CEO of GECAS; and
Steve Udvar-Hazy, CEO of Air Lease Corp.
Steven Udvar-Hazy, co-founder of International Lease Finance Corp. and one of the most powerful voices in commercial aviation, retired on 5 February after more than 27 years in the leasing business.
His departure from ILFC was expected since the mega-lessor was plunged into a financial morass because of the massive scandal at its parent, AIG, which acquired ILFC in 1990 in what was then considered a masterful piece of timing. Only a year later, Iraq invaded Kuwait and aircraft, airline and lessor valuations plunged on the global economic crisis created by the subsequent Iraq War of 1991.
Update, March 26, 2:20PM PDT: Bloomberg News moved this piece in which ILFC’s CEO says he’ll get the lessor out from under AIG’s “cloud.”
Mega-lessor International Lease Finance Corp. filed its 2009 10K annual report March 25 with the Securities and Exchange Commission. In it, the company discussed possibilities that could create what’s called a “going concern” situation.
In accounting-speak, the reference is all about bankruptcy. If a company or its auditors raise questions about the ability to continue as a “going concern,” this means there is a possibility the company could seek protection in the US bankruptcy courts. This almost always is a Chapter 11 reorganization filing rather than a Chapter 7 liquidation action.