NEWS
  Aircraft & Manufacturers
23 OCTOBER, 2017 Boeing and Mitsubishi Heavy Industries (MHI) have entered an agreement that ...
Airbus is yet to commit to a maiden flight date for its A330neo, but both engines have been fitted . ...
26 SEPTEMBER, 2017 Boeing has created a programme office to support the New Mid-market Airplane, ...
  Airlines business
Gulfstream delivered 30 business jets during the third quarter, one more unit than the same period . ...
Hãng hàng không Quốc gia Vietnam Airlines cho biết sẽ khai thác trở lại đường bay Hà Nội - Tuy Hoà . ...
Embraer Executive Jets delivered the first midsize Legacy 500 assembled at its recently expanded ...
 
Business jets
Monday, 20/04/2018, 13:45:34 PM
PARIS AIR SHOW ANALYSIS: Five reasons for the widebody sales slump
Comment Comment |  Send To E-mail Send To E-mail |  Print Print
Jun 21, 2017 While Airbus and Boeing racked up orders for narrowbody aircraft at the 2017 Paris Air Show, with the newly launched 737 MAX 10 garnering the most attention, widebody orders have been few and far between this week.

Several of the widebody orders that were announced were disclosures of customers for sales already on the books or the firming of options. Significantly, Boeing so far has announced no new orders for the 777X; the manufacturer already is making two production rate cuts to the 777 program this year because of weakness in widebody sales.

Why are airlines shying away from widebody orders? Five major reasons:

Overcapacity

Delta Air Lines CEO Ed Bastian said earlier this year that there is “excess capacity in widebodies as we look to the future of the industry as a whole.” That means many airlines feel they have enough already—Delta and American Airlines have collectively deferred 32 A350-900s this year—and, if they do need a few in a pinch, there is a surplus of used widebodies available at very attractive prices.

Middle East challenges

The Big Three Gulf carriers—Emirates Airline, Etihad Airways and Qatar Airways—have been the big drivers of widebody orders in recent years. But these are difficult times for those airlines for a number of reasons, including the laptop ban, the diplomatic rift between Qatar and its Gulf neighbors, the ongoing conflicts in Syria and Yemen and basic business issues such as Etihad’s problematic foreign investments. The Gulf carriers are simply in no position to order more widebodies at this time.

Neo and MAX range

The A321neoLR has a range of 4,000nm while the 737 MAX 7, 8 and 9 all can fly at least 3,500nm. Norwegian is planning to deploy the MAX 8 on transatlantic routes. These extremely efficient aircraft can operate many shorter long-haul routes that were previously only viable with widebodies. So airlines can buy a cheaper aircraft and deploy it at less risk from a capacity standpoint on routes that used to be the province of widebodies. That is making carriers think twice about widebody purchases.

Waiting for what’s next

Boeing this week teased details of its potential middle of the market aircraft—the so-called 797—that would enter service in 2025, and could be formally launched within the next year and a half. Boeing said the aircraft will include a fifth-generation composite wing, a “hybrid” composite fuselage, next-generation digital architecture and super-efficient engines. It would have two aisles, seat up to 270 passengers and have a range of more than 5,000nm. If Boeing—and potentially Airbus in response—will be launching a new aircraft by early 2019, why pull the trigger now on an order? If an airline is looking to replace older 757s or 767s on transatlantic routes—as is the case with United Airlines—why place an order when a tantalizing new offering is coming soon?

Previous large widebody orders

Finally, at least with the Airbus A350 and Boeing 787, many airlines have previously made their new widebody fleet picks and placed their orders. Airbus has more than 850 A350 orders; Boeing north of 1,200 Dreamliner orders. With these orders already placed, there are simply fewer opportunities for Airbus and Boeing in the widebody market compared to the narrowbody market, where startups and low-cost carriers are big players. Much of the current widebody focus, therefore, is on production execution and delivery.

Comment Comment |  All Comment
Other news [Back]
 Textron Aviation celebrates light jet leadership with 2,000th delivery for Cessna CJ family  (23/06/2017)
 Bombardier Marks Major Milestone with Delivery of 3,000th Learjet Aircraft Manufactured  (09/06/2017)
 EMBRAER RELEASES FOURTH QUARTER AND FISCAL YEAR 2016 RESULTS AND 2017 OUTLOOK  (10/03/2017)
 Falcon 2000LXS joins Luxaviation UK charter fleet  (06/01/2017)
 Dassault sees better Southeast Asia business jet market  (22/12/2016)
 Cedar Executive Orders an additional Embraer Legacy 500  (08/12/2016)
 Royal Jet introduces two new BBJs  (01/12/2016)
 Second Cessna Citation Longitude takes flight  (24/11/2016)
 GAMA records third quarter delivery slide  (17/11/2016)
 Dassault Aviation Delivers First Falcon 8X  (03/11/2016)
 Embraer’s Aircraft Deliveries in 3Q16  (21/10/2016)
 Cessna celebrates segment leadership with 5,000th Citation light jet delivery  (13/10/2016)
 GULFSTREAM BÁN CHIẾC G150 CUỐI CÙNG, CHẤM DỨT 10 NĂM SẢN XUẤT  (06/10/2016)
 Falcon 8X makes LABACE debut  (08/09/2016)
 Bombardier Delivers First Challenger 650 Aircraft to be Operated from Germany  (12/08/2016)
 
SERVICES
 VALC News
On 19 Dec 2012, VALC successfully took delivery of the A321-231 aircraft with MSN 5418. This is the ...
Chi tiết
At 17:00 5th September, 2012 local time in Hamburg, Vietnam Aircraft Leasing Company (VALC)   ...
PRESS RELEASE  23-08-2012 11:12am
VALC delivered the first A321-200 to Vietnam Airlines.
Chi tiết
On November 5th, 2011, Vietnam Aircraft Leasing Company (VALC) took delivery of the EC155 B1 ...
 
VALC Valc, leasing, aircraft, plane, airlines, fastmoney, boeing, airbus, việt nam, airlines, viet nam, finance, investment Copyright © 2008 VALC.COM.VN
Back to top
Homepage  |   Contact  |   Make your homepage  |   Introduce VALC  |   RSS  RSS Feeds
Copyright © 2008 VALC.COM.VN. All Rights Reserved. Address: 14th Floor, Tower A Vincom Building, No.191 Ba Trieu Str., Hanoi, Vietnam.