#regional jets

[airinsight]

HOT off the tarmac - How to make the Bombardier & Mitsubishi lawsuits go away

HOT off the tarmac – How to make the Bombardier & Mitsubishi lawsuits go away

Bombardier filed a suit against Mitsubishi Aircraft (MAC) late in 2019, claiming stolen trade secrets from ex-employees that left Bombardier’s (BBD) C Series program and joined the MRJ program.  Bombardier, we understand, has evidence to back its claims.

To whit:

Yesterday Mitsubishi filed a counterclaim against Bombardier.   MAC claims that Bombardier is “engaged in illegal anticompetitive…

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[airinsight]

Bombardier puts a marker down on the CRJ

Bombardier puts a marker down on the CRJ

After announcing the sale of the Q Series, following Airbus assuming control of the C Series, the general consensus is that Bombardier is exiting the commercial aerospace OEM business. Maybe. What is clear is that Bombardier has thrown down the gauntlet on the CRJ. It wants its business partners to come to the table.

During last week’s investor call, Bombardier CEO Alain Bellemare explained that…

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[airinsight]

US airline industry fleet concentration

US airline industry fleet concentration

As of the 2Q18, here is where we stood with the US airline industry in-service fleet.

The top four airlines accounted for 79% of the fleet.  That is concentrated and clearly points to industry followers needing to be au fait with oligopoly economics to understand the industry’s behavior. For example, competing oligopolists prefer non-price competition in order to avoid price wars.

Among the US…

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[airinsight]

Premium 2018.12 - The influential US Regional Jet market

Premium 2018.12 – The influential US Regional Jet market

We have previously noted that the US represents roughly 70% of the world regional jet market.  This ensures that the US market dictates how the industry moves.  Even if China were to grow rapidly, it would possibly be decades before it matches the US influence in this segment.

The focus on the US also means that the world regional jet market is impacted by the US scope clause limitation, crazy as…

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[airinsight]

The soft CRJ backlog

The soft CRJ backlog

Bombardier is facing a soft backlog for their CRJ line.  This backlog news isn’t new.  The CRJ line is about to add a new interior and customers have been waiting to see it.

Consequently, Bombardier has been looking at different scenarios to adjust its labor resources.  This is required by Canadian law; unions and contractors must be notified.  A temporary rate reduction to adjust with orders is…

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[airinsight]

A Review of China’s Regional Jet Fleet

A Review of China’s Regional Jet Fleet

China has new rules that are rigorous with respect to the development of regional airlines.  We published an analysis of these regulations later this week.

What does the actual regional jet market look like in China?  Data is not easy to find.  But here is a summary of China’s regional jet fleet as of 3Q17.

Let us focus on the newer jets, and set aside the CRJ200/700 as well as the ERJs.  A…

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[airinsight]

The SSJ shrink choice

The SSJ shrink choice

SCAC (Sukhoi Civil Aircraft Company) announced they are planning on a 75-seat “shrink” version of their SuperJet.  The current SSJ100 seats 98-103.   The new aircraft will be upgraded in several areas, including engines, avionics, and aerodynamics. The image below shows an aerodynamic enhancement for the aircraft, including the addition of “saberlets” on the wingtips.

SCAC has been talking about…

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[thomarse]

Embraer’s first 195 E2, their biggest plane yet, rolled out yesterday in Brazil. Sweet!