Articles tagged with: Airbus

20
November
2014

Airbus Wins Delta Order on Promise of Delivery

Featuring: Richard L. Aboulafia

Airbus Wins Delta Order on Promise of Delivery

Richard Aboulafia, an analyst at the Teal Group, said: "Delta's established a rich pattern for buying older planes. The only surprise here is that they actually went ahead with their order. They were the least enthusiastic about new-generation airplanes."

Delta declined to say how much it would pay for the planes, which have a list price of more than $13 billion. But a single bulk order effectively guarantees it will receive a steep discount.

"You get half off just for showing up," Mr. Aboulafia said.

Media Outlet: The New York Times Tags Airbus | Delta

16
October
2014

For Boeing, Smooth Airbus A350 Certification Brings New Pressure

Featuring: Richard L. Aboulafia

For Boeing, Smooth Airbus A350 Certification Brings New Pressure

"The 350 is a very serious threat and it's very well executed on," said Richard Aboulafia, aerospace analyst for the Teal Group, an analyst firm outside Washington, D.C. "Boeing was dragging its heels on the 777X and the 787-10, the A350 is a far bigger success than it would have had Boeing been quicker."

He added that Boeing's strained relations with its two largest unions is a potential liability, as the company develops the design and manufacture of the 777X.

"Bad workforce relations are a risk," he said. "It doesn't guarantee that you're not going to execute as well as Airbus did on the A350, but it adds risk. Airbus has better labor relations."

Media Outlet: Puget Sound Business Journal Tags A350 | Airbus | Boeing

02
October
2014

Why Boeing Had to Boost 737 Production -- Its MAX Trails Airbus

Featuring: Richard L. Aboulafia

Why Boeing Had to Boost 737 Production -- Its MAX Trails Airbus

"Boeing is at a disadvantage in terms of next generation narrow body timing because Airbus is doing a great job with the A320neo," said Richard Aboulafia, aerospace consultant for Teal Group.

First delivery of the A320neo is scheduled for the fourth quarter of 2015 to Qatar, while first delivery of the 737MAX is scheduled for the third quarter of 2017 to Southwest (LUV) .

"Airbus is going to get there the better part of two years earlier than Boeing," Aboulafia said. "The best thing Boeing can do is to catch up with them as soon as possible. In this high-fuel-cost environment, it's a game of availability; it's all about timing."

Media Outlet: The Street Tags A320neo | Airbus | Boeing

20
August
2014

Giant Airbus A380 Finds Sales Not So Big

Featuring: Richard L. Aboulafia

Giant Airbus A380 Finds Sales Not So Big

But critics like Richard Aboulafia, an aerospace analyst at the Teal Group, an aviation-consulting firm in Fairfax, Va., say the main problem is more fundamental: Airbus made the wrong prediction about travel preferences.

He said people would rather take direct flights on smaller airplanes than get on big ones — no matter their feats of engineering — that make connections through huge hubs. "It's a commercial disaster," Aboulafia says. "Every conceivably bad idea that anyone's ever had about the aviation industry is embodied in this airplane."

Media Outlet: ABC News Tags A380 | Airbus

30
June
2014

Airbus and Boeing Plan Increased Output

Featuring: Richard L. Aboulafia

Airbus and Boeing Plan Increased Output

Richard Aboulafia, vice president of analysis at the Teal Group, believes current narrowbody production rates are sustainable today, "but going up further can be a real problem. You can go up to 50 or 60 [aircraft per month], but if the slightest thing happens you are in real trouble." He cautions that "the idea to go up further is a great way to engineer overcapacity."

Both Airbus and Boeing have already decided to move production rates up for the narrowbody models—Airbus is boosting the A320 line to 46 aircraft per month from 42, and Boeing is moving 737 production to 47 per month from 38 and is pondering 52. Airbus is also looking at rates higher than 50 when the transition to the A320neo is completed.

Aboulafia also is concerned that some emerging players such as Lion Air or Norwegian may not fulfill their promises. Both airlines have large orders for new narrowbodies with Airbus and Boeing. From a macroeconomic point of view, this is worrisome, he says.

To an extent, the situation for manufacturers is as good as it is because of low interest rates (which encourage investment) and the high cost of fuel. These factors can change, and if Airbus and Boeing are unlucky, fuel will become cheaper and interest rates will rise in parallel. Therefore: "We are taking it too far," Aboulafia contends.

Media Outlet: Bloomberg Tags A320 | Airbus | Boeing

05
June
2014

Airbus in Supplier Talks Mulls Upgrades to A320neo Jet

Featuring: Richard L. Aboulafia

Airbus in Supplier Talks Mulls Upgrades to A320neo Jet

Now, Airbus is preparing to introduce upgraded avionics and other systems that would bring its plane’s features closer to those offered in Boeing’s upgraded 737 Max, which is slated to begin commercial flights in 2017, said Richard Aboulafia, an aerospace analyst with Teal Group, a Fairfax, Virginia-based consultant. “This is something they’ve always done,” Aboulafia said in a phone interview. “Boeing tends to launch all of its big changes in one block. Airbus has more of a rolling update approach.”

Media Outlet: Bloomberg Tags 737 | Airbus | Boeing

12
May
2014

Is the Passenger-Carrying 767 Really Dead?

Featuring: Richard L. Aboulafia

Is the Passenger-Carrying 767 Really Dead?

Airbus is still working out its strategy in the segment that the 767 and 787 occupies. The airframer is officially set on delivering the A350-800, but is also entertaining calls for a re-engined A330. The future of the 767 passenger variant is feasible only if Airbus remains locked on the A350-800 option, says Richard Aboulafia, vice-president of analysis at the Teal Group. “If Airbus doesn’t re-engine the A330, then maybe [the passenger 767 has a future],” he says. An A330neo would occupy shorter routes of 5,000nm (9,270km) or less in the passenger class – closer to the 767-300ER. “Then [the passenger 767] ends,” Aboulafia adds.

Media Outlet: Flightglobal Tags 767 | A350-800 | Airbus | Boeing

26
March
2014

Airbus Signs Long-Term Helicopter Deal With China Manufacturer

Featuring: Richard L. Aboulafia

Airbus Signs Long-Term Helicopter Deal With China Manufacturer

Richard Aboulafia, aviation consultant with Fairfax, Va.-based Teal Group, said that partnerships between Western and Chinese aviation companies have tended to unravel over time because of intellectual-property issues.

Media Outlet: The Wall Street Journal Tags Airbus | China | Helicopters | Intellectual Property

26
February
2014

Airbus Aims To Keep A350 On Schedule, By Batches

Featuring: Richard L. Aboulafia

Airbus Aims To Keep A350 On Schedule, By Batches

“It sounds like [the Boeing] 787, 747-8 and [Lockheed Martin] F-35 to me,” says Richard Aboulafia, vice president for analysis at the Teal Group, referring to programs that had to incorporate late design changes during production ramp-up. “If you are missing important milestones, you get beaten up by the financial markets or your customers. . . . You want to meet time guarantees more than performance guarantees.” Introducing upgrades later in production while keeping the schedule intact “is more of a problem in the long term,” Aboulafia asserts. One of the major issues of putting risks on balance sheets is the question of residual values, which become relevant when an operator plans to sell an early-batch A350. The approach is also very expensive, both for Airbus and its suppliers.

Media Outlet: Aviation Week Tags A350 | Airbus

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