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[1/2] A model of a Future Combat Air System (SCAF), a European aircraft developed by France, Germany and Spain is displayed during the 54th International Paris Airshow at Le Bourget Airport near Paris, France, June 19, 2023. REUTERS/Benoit TessierPARIS, June 19 (Reuters) - The Paris Airshow opened on Monday with last-minute jet order negotiations and supply chain headaches competing for attention with rows of missiles, drones and futuristic transport. France's Thales (TCFP.PA) announced a contract from Indonesia for 13 long-range air surveillance radars. On the commercial side, planemakers arrived with growing demand expectations as airlines rush for capacity to meet demand and help reach industry goals of net zero emissions by 2050. Airbus is also close to a potentially large order for narrow-body jets from Mexican low-cost carrier Viva Aerobus, industry sources said on Sunday.

Persons: Benoit Tessier PARIS, Le Bourget, Emmanuel Macron, France's, planemakers, Tim Hepher, Joanna Plucinska, Allison Lampert, Valerie Insinna, Mark Potter Organizations: Air, Paris, REUTERS, Farnborough, French Rafale, U.S, Rafale, Eurofighter, France's Thales, Airbus, . Industry, Qantas, Viva Aerobus, Boeing, Thomson Locations: European, France, Germany, Spain, Le Bourget, Paris, Britain, Belgium, Franco, Spanish, Ukraine, Indonesia

ISTANBUL, June 6 (Reuters) - Global airlines called on Tuesday for broad co-operation to reach "very tough" emission targets and pledged to release interim climate targets next year as the industry aims for a goal of net-zero by 2050. Airlines are relying for 62% of their emissions reduction target on the fuel, which is currently between two to four times more expensive than kerosene. Walsh said airlines were not afraid to confront the fact that their share of total emissions will rise as other industries with fewer technological hurdles decarbonise. "Different parts of the world are moving at different paces and for us, representing global airlines, we've got to factor all of that into account." One thing airlines agreed on was frustration at aircraft delays, which have disrupted their schedules, with CEOs asking IATA to lobby planemakers.

Persons: Willie Walsh, Walsh, Jo Dardenne, Tim Clark, Clark, we've, Joanna Plucinska, Tim Hepher, Andrew Heavens, Sriraj Kalluvila, Alexander Smith Organizations: Aviation, International Air Transport Association, Sustainable Aviation Fuel, SAF, Transport, Environment, Dubai's Emirates, Reuters, Thomson Locations: ISTANBUL, Istanbul, planemakers, United States, Dubai

☆ Airlines body urges jetmakers to fix aircraft delivery delays
▼ + stars: | 2023-06-04 | by ( ) www.reuters.com time to read: +1 min

Airlines "are not concerned about the macroeconomic environment, they're concerned about the access to spare parts for their existing aircraft and the delivery of new aircraft. "It's frustrating because airlines can see strong demand, but they're not able to match supply with demand in many markets. Airbus (AIR.PA) and Boeing (BA.N) have blamed supply chains for delivery delays, while bottlenecks in a network of engine repair shops have also forced airlines to ground dozens of jets. The gathering comes two weeks before the Paris Airshow, where supply pressures are likely to overshadow new orders. Reporting by Tim Hepher, Joanna Plucinska and Aditi Shah; Editing by David HolmesOur Standards: The Thomson Reuters Trust Principles.

Persons: Adolfo Suarez, Isabel Infantes, Willie Walsh, it's, they're, Tim Hepher, Joanna Plucinska, Aditi Shah, David Holmes Organizations: Ryanair Boeing, Airbus, Adolfo Suarez Madrid, Barajas Airport, REUTERS, International Air Transport Association, Reuters, Boeing, Thomson Locations: Madrid, Spain, Isabel Infantes ISTANBUL, Istanbul, Airlines, Paris

PARIS/WASHINGTON, May 29 (Reuters) - Cathay Pacific Airways Ltd (0293.HK) is close to placing an order worth around $2 billion for Boeing (BA.N) 777-8F freighters as the Hong Kong carrier embarks on the partial renewal of a fleet of dedicated 747 cargo jets, industry sources said on Monday. Industry sources have said the competition involved an initial purchase of around half a dozen aircraft, worth some $2 billion at list prices before traditional airline discounts. Boeing launched the 777-8F freighter with an order from Qatar Airways in January 2022, six months after Airbus launched development of the A350 Freighter in a bid to weaken its U.S. rival's traditional grip on the market for freighters. Cathay Pacific told analysts last November it was looking at more freighter capacity and working "actively" with planemakers to acquire some of the new freighters coming up after 2025. Cathay Pacific is the world's fifth-largest air freight carrier and the third-largest traditional freight airline behind Qatar Airways and Emirates when specialist express parcel carriers FedEx and UPS are excluded, according to latest available data from the International Air Transport Association.

The European Business Aviation Convention & Exhibition (EBACE), hosted in Geneva, kicks off on Tuesday and brings together everyone from brokers, planemakers to engine producers. CO2 emissions from private jets in Europe grew by 31% between 2005 and 2019, according to environmental group Transport and Environment. Protesters are expected to gather on Tuesday outside the conference location in Geneva to highlight the rising number of private jet flights amidst a worsening global climate crisis. "The big innovations are usually deployed first in our industry," Kok said. Business jet flights have dropped in Europe by around 6% compared with the same time in 2022, WINGX data showed.

May 19 (Reuters) - AIP Capital, the aviation asset management arm of 777 Partners, plans to invest up to $200 million in small and medium aerospace suppliers by the end of next year, at a time when the lower rungs of the supply chain are facing financial difficulties. The investments may include a first lien loan, and a single investment will range between $10 million and $30 million, AIP Capital Managing Partner Mathew Adamo told Reuters in an interview. AIP, which was launched earlier this week, has entered into a servicing agreement with 777 Partners to manage all commercial aircraft owned by the private-equity firm. Stamford, Connecticut-based AIP said supply chain investments would focus on companies in developed countries. It is targeting to raise $300 million to $500 million by the end of this year overall for private credit investments.

☆ Russian airlines have received millions of US-made aircraft parts since the invasion of Ukraine
▼ + stars: | 2023-05-17 | by ( Taylor Rains | ) www.businessinsider.com time to read: +5 min

Over $14.4 million worth of US-made aircraft parts illegally entered Russia in 2022. Millions of dollars worth of aircraft parts entered Russia in 2022 despite Western sanctions preventing exports — suggesting the strategy isn't as bulletproof as governments had hoped. The aviation sector was expected to take a big hit as Russian carriers — including Rossiya Airlines, Aeroflot, Ural Airlines, S7 Airlines, Utair Aviation, and Pobeda Airlines — mostly fly Boeing and Airbus planes. With the influx of parts, Russian carriers have been able to better maintain their fleets — a reality that was not initially anticipated by experts, Bloomberg reported. Even so, Russian airlines have scheduled over 10,000 flights between Russia and Central Asia in May, per the NYT.

☆ Boeing deliveries fall by half in April due to 737 MAX bracket defect
▼ + stars: | 2023-05-09 | by ( ) www.reuters.com time to read: +2 min

WASHINGTON, May 9 (Reuters) - Boeing Co (BA.N) deliveries fell to 26 airplanes in April, less than half of the previous month's total, after a manufacturing defect forced the company to halt some shipments of its bestselling 737 MAX passenger jet. Deliveries of the MAX, which had climbed to 52 narrowbody jets in March, dropped to 17 planes last month. That left passenger jet deliveries for the U.S. planemaker at their lowest level since July 2022, as well as below the 35 planes delivered last April. Boeing Chief Financial Officer Brian West told investors in an earnings call last month that MAX deliveries would slow through the second quarter, but then grow to about 40 jets per month, with sequential quarterly improvement in the second half. Boeing has delivered 156 jets over the first four months of 2023, including 128 MAXs.

"We could add maybe 85 or 90 destinations depending on the aircraft deliveries," Qatar Airways CEO Akbar Al Baker told reporters. Airbus in March reinstated an order for 73 aircraft from Qatar Airways which it had revoked during a major legal dispute over damage to the surface of grounded A350s. Qatar Airways is also experiencing delayed delivery of Boeing 787 and 777X planes, Al Baker added. He later told reporters that Qatar Airways could pursue codeshares or exchanges of technical assistance with the new airline. High energy prices have not dented passenger demand for travel at Qatar Airways, where load factors, a measure of capacity utilisation, are in the "high 80s" Al Baker told reporters.

Boeing shares rose 2.5% in early afternoon trade after the company reaffirmed its plans to generate $3 billion to $5 billion in free cash flow this year, as well as deliver 400 to 450 737 MAXs and 70 to 80 787 Dreamliners. Deliveries will increase to about 40 MAXs a month during the back half of the year, he said. Reuters reported earlier this month that Boeing's schedule called for suppliers to produce 38 737 MAXs a month from June. Reuters GraphicsBoeing's first-quarter cash burn slowed to $786 million from $3.57 billion a year earlier on higher jet deliveries. Reporting by Abhijith Ganapavaram in Bengaluru and Valerie Insinna in Washington; Editing by Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

April 26 (Reuters) - Boeing Co (BA.N) said on Wednesday that it planned to ramp up production of its 737 MAX jets to 38 per month by year-end, while backing its annual cash-flow goal, offering some relief to investors after a new manufacturing snafu threatened to derail deliveries. Reuters reported earlier this month that Boeing's schedule called for suppliers to ramp up to 38 737 MAXs a month in June. Overall, Boeing reaffirmed plans to generate $3 billion to $5 billion in free cash flow this year, as well as deliver 400 to 450 737 MAXs and 70 to 80 787 Dreamliners. Boeing reported an adjusted loss per share of $1.27, wider than analyst expectations of a loss of $1.07 per share, per Refinitiv data. Boeing executives are expected to detail the scope of the problem on an investor call later in the day.

☆ Safran posts strong sales but sees supply chain risks
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +2 min

"The (pandemic) demand crisis is well and truly behind us," Chief Executive Olivier Andries said after reporting first-quarter revenues that rose 24.7% on an underlying basis to 5.266 billion euros ($5.78 billion). Safran's core propulsion revenues rose by 34.9%, on an organic basis, to 2.714 billion euros. Safran reaffirmed its 2023 full-year forecasts for revenues of at least 23 billion euros, recurring operating income around 3 billion euros and free cashflow of at least 2.5 billion. But the engine maker said the main risk factor remained supply chains, led by shortages of materials and labour. Andries said all metals were on the company's watch list for possible supply disruptions, notably steel.

REUTERS/Jason Redmond/File PhotoPARIS/WASHINGTON, April 19 (Reuters) - Planemakers have signalled a shift in production strategy to make factories more resilient to recent supply disruptions by adding "surge capacity," even where that means extra cost. "We live in a supply constrained environment ... Our focus is on both capacity and quality. "To support the supply chain, we've increased on-site presence, we've ramped up internal fabrication for surge capacity and we've increased inventory of select parts for risk protection." DEFENDING AVERAGE OUTPUTPlanemakers only rarely speak of "surge capacity" in the aerospace production system, which is seen as more capital-intensive and less nimble than in consumer-facing industries. Although auto firms rely heavily on overtime to meet peak demand, analysts say there are examples of automakers installing surge capacity for a successful product.

☆ Exclusive: Airbus delays some 2024 deliveries, keeps output goals
▼ + stars: | 2023-04-18 | by ( Tim Hepher | ) www.reuters.com time to read: +4 min

Airbus confirmed unspecified delays for 2024 in a statement to Reuters but said they did not reflect any worsening of supply chain problems since it revised production plans earlier this year. The delays particularly affect the larger and in-demand A321neo variant, which now represents over half of Airbus deliveries, the sources said. Airlines and leasing companies have protested in recent months over a trickle of short-term delay notices amid ongoing supply chain problems. Airbus is currently the world's largest planemaker as Boeing slowly recovers from the 737 MAX safety crisis and production delays on the 787. The delays for 2024 extend the impact of supply chain problems stemming from the COVID-19 outbreak into a fifth year.

[1/2] An Airbus A320neo aircraft is pictured during a news conference tin Colomiers near Toulouse, France, October 17, 2017. Airbus' defense portfolio includes the A400M and the C295, which are respectively larger and smaller than Embraer's KC-390. De La Vela said he sees potential collaborations emerging in areas such as unmanned aircraft and space technologies, including for new products, adding that he would like to hear from Embraer before elaborating. De La Vela said Airbus expects the Brazilian MRTTs to open the Latin American market for the aircraft, noting talks with four other undisclosed countries in the region were underway. Reporting by Gabriel Araujo and Rodrigo Viga Gaier; Editing by Bill BerkrotOur Standards: The Thomson Reuters Trust Principles.

Higher costs and a shortage of available new parts are also delaying aircraft repairs, which risk pushing up air fares. Some makers of brand-name parts like General Electric Co (GE.N) stand to benefit because they also sell used parts, known as used serviceable material. Honeywell Aerospace Trading (HON.O), the U.S. conglomerate's used parts business, is among companies enjoying higher demand since 2021. Ultimately, the alternatives to new parts may bring relief but a congested supply chain must be fixed, said Benjamin Hockenberg, president of JSSI Parts & Leasing. "Certain models, certain situations, (used parts) will fill the void, but I think we also need to see a repaired supply chain," said Hockenberg.

Airbus and Boeing have both highlighted the scale and technology of existing investments in India, playing down the significance of final passenger jet assembly. Boeing said it buys $1 billion a year in parts and services from India, while Airbus said it buys $700 million. "There's a desire in every country to have as much manufacturing as possible ... and final assembly is a desire that you see all around the world," Salil Gupte, president of Boeing India, told Reuters. "The volumes that you would require for final assembly on the commercial part of the business are just far, far greater," he said. "Even without the C295 FAL, the Airbus industrial footprint in India already generates more foreign exchange value and jobs for the country than any modern assembly activity would," said Remi Maillard, president of Airbus India & South Asia, by email.

March 24 (Reuters) - Financial sector headwinds are creating fresh openings for private equity investments in aerospace, as suppliers' need for capital to meet soaring demand for planes and parts risks further turbulence, executives said. He said he would not oppose a private equity investment, as long as he maintains control and the combination makes sense by lowering costs. Global private equity deals among companies with aerospace portfolios rose to 216 in 2022, more than double 2019's figure and the highest in over a decade, according to Refinitiv data. Permanent Equity wants to invest in repair stations and suppliers with large inventories of aerospace parts. In Canada, while bank loans remain accessible for small suppliers, rising rates have flattened real estate pricing.

On Tuesday, Boeing announced orders for 78 Dreamliners, split between state-owned Saudi Arabian Airlines (Saudia) and new national airline Riyadh Air. The $37 billion sale, which Boeing called its fifth-largest commercial order by value, followed a deal with United Airlines (UAL.O) in December for 100 Dreamliners and a purchase by Air India that included 20 787s. Planemakers are also grappling with the after-effects of the pandemic, which forced waves of layoffs and retirements of skilled workers. While Airbus outsold Boeing in the Air India deal, landing orders for 40 A350 widebodys, the U.S. planemaker swept both the United Airlines and Saudi orders. “Saudi Airlines is a government-owned airline, and so there are politics involved with this,” analyst Stallard said.

☆ Raytheon says can support mid-50 Airbus A320 output, backs Boeing target
▼ + stars: | 2023-02-22 | by ( Abhijith Ganapavaram | ) www.reuters.com time to read: +2 min

Feb 22 (Reuters) - Aerospace giant Raytheon Technologies Corp (RTX.N) can support a monthly production rate in the mid-50s range for Airbus SE's (AIR.PA) A320 aircraft this year, a target that appears slightly below the planemaker's planned output hike. Speaking at a Barclays conference on Wednesday, Raytheon Chief Executive Officer Greg Hayes backed Airbus rival Boeing Co's (BA.N) planned 737 MAX jet production hike. Boeing aims to raise the production of its bestselling 737 MAX jetliner from about 31 jets a month. Production targets of the planemakers are under the scanner by investors - albeit for different reasons. Raytheon-owned Pratt & Whitney's engines power all Airbus A220 jets and about half of A320neo aircraft.

For airlines, sale-and-leasebacks have been a popular way to generate liquidity and ease balance sheets. They then aim to sell them at a profit to lessors at the expense of agreeing to pay a rent. "It's a cheap and often tax-efficient way for the airline to raise finance," said an aircraft finance source. "Lessors are already queuing up to do business with Air India. Some lessors say it is not worth it after new money poured into aviation looking for returns when interest rates were low.

Tata Group, which regained control of Air India last year after decades of public ownership, put out just six paragraphs. "Air India negotiated hard and the team is very sharp despite having no prior aviation experience. A second person who watched the billions fall into place said the Air India negotiators were "methodical, tough and very sophisticated". Plans for announcements on the anniversary of Tata's Air India takeover slipped as engine talks wore on. Analysts caution many obstacles remain to Air India's plans.

☆ Bombardier jet deliveries to rise in 2023 on private flying boost
▼ + stars: | 2023-02-09 | by ( ) www.reuters.com time to read: +2 min

[1/2] An attendee exits the Bombardier Global 6500 business jet at the National Business Aviation Association (NBAA) exhibition in Las Vegas, Nevada, U.S. October 21, 2019. REUTERS/David Becker/File PhotoFeb 9 (Reuters) - Canada's Bombardier Inc (BBDb.TO) on Thursday forecast higher business jet deliveries for 2023, after strong demand for private flying drove its quarterly results above expectations despite persistent supply-chain snags. Cessna jet maker Textron Inc (TXT.N) had also offered a strong 2023 forecast last month. It forecast 2023 revenue of more than $7.6 billion, compared with estimates of $7.69 billion, according to Refinitiv data. Free cash flow is expected to be over $250 million, compared with last year's $735 million.

☆ Spirit Aero experiencing disruptions in supplying parts for 787, A350 programs
▼ + stars: | 2023-02-07 | by ( Abhijith Ganapavaram | ) www.reuters.com time to read: +3 min

Feb 7 (Reuters) - Spirit AeroSystems Holdings Inc (SPR.N) said on Tuesday it was experiencing disruptions in supplying parts for the industry's top-selling wide-body jets, the Boeing 787 and Airbus A350, due in part to labor shortages. Spirit said it found the new process for the 787 required more labor per unit. On Airbus' A350 program, Spirit said disruptions continue to drive cost pressures. Spirit has targeted producing shipsets between 40 and 45 this year for the 787 program and about 60 units for the A350. Spirit reported a quarterly cash burn of $66 million, compared with analysts' estimates of $42.64 million, according to Refinitiv data.

However, Boiardi said an earlier proposal from the industry for totally single-pilot flying by 2030 was "absolutely not realistic", because automation had not advanced far enough and solo flying required a level of safety equivalent to existing operations. Solo flying, even in cruise, needs approval from the United Nations' International Civil Aviation Organization, individual airlines and their pilot unions. Even limited solo flying, however, is dividing airlines and raising public fears, while sparking a growing backlash among pilot groups like the European Cockpit Association. Airbus said in a statement it was studying the concept of a single pilot in the cruise phase but not wholly single-pilot flights. Consumer resistance, however, could result in single-pilot flying starting with cargo flights, industry officials said.

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