Flight International 2017-02-14.pdf

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Funding fight
Ottawa adding
state support
for Bombardier
projects, as
Brazil takes its
case to WTO
7
Big attraction
Airbus confirms
plan to deliver
two early-build
A380s for new
life of flight at
the museum
11
Rocket plan
What next for
Europe’s joint
ambition in
space? We look
at its funding
priorities
24
14-20 February 2017
flightglobal.com
AIRLINES
Cold shoulder
Ryanair freezes UK expansion over Brexit
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Volume 191
Number 5574
14-20 FEBRUARY 2017
CONTENTS
NEWS
Funding fight
Ottawa adding
state support
for Bombardier
projects, as
Brazil takes its
case to WTO
7
Big attraction
Airbus confirms
plan to deliver
two early-build
A380s for new
life of flight at
the museum
11
Rocket plan
What next for
Europe’s joint
ambition in
space? We look
at its funding
priorities
24
6
7
8
14-20 February 2017
flightglobal.com
AIRLINES
Cold shoulder
Ryanair freezes UK expansion over Brexit
THIS WEEK
SIA looks to widen its prospects with 777-9
commitment
Bombardier boosted by Ottawa funds
IAG sees ‘significant’ future in low-cost,
long-haul flights.
Leonardo to fly solo in pursuit of T-X award.
Lockheed says F-35 might not hit $85m target
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COVER IMAGE
Maciej Ramos captured
this seasonal shot of a
Ryanair 737-800 during
de-icing at Warsaw’s
Chopin airport in early
January. The carrier is
facing a profit freeze
P9
Leonardo set to offer T-100 for T-X requirement
P8
9
COVER STORY
NEWS FOCUS
15
Norwegian way holds sway for rivals
DEFENCE
16
Camcopter rises with Australian contract.
Taiwan’s jet trainer to be developed locally.
V-22 tanker on track for marines
17
USAF sharpens aim on A-10 extension.
New deal brings F-35A below $100m
INTERVIEW
18
Air Combat Command chief Gen Herbert
“Hawk” Carlisle
Ryanair feels impact of Brexit instability
Carrier expects uncertainty over UK’s
relationship with EU to slow growth, and is
prepared to shift capacity elsewhere
BEHIND THE HEADLINES
Craig Hoyle
(pictured) was
calm in the cockpit after
attending
British Airways’
Flying with Confidence
course at
London Gatwick
(P30). And at the
A4E
event
in
Brussels, Oliver Clark
got an
IAG update
(P8)
BUSINESS AVIATION
21
Global wings will continue to Triumph.
Luxaviation aiming high with launch
of dedicated VIP helicopter division.
Argentina sees first operations of Phenom 100
GENERAL AVIATION
23
Airshow debuts in view for Stratos 714.
Cirrus delivers sixth generation of SR family.
Diamond DA40NG fuels Ethiopian’s plans
24
SPACEFLIGHT
Space gets euro boost
European nations did not grant ESA all its wishes
for the next few years, but member states have
put their money down to back strategic priorities
in access and navigation
30
FEAR OF FLYING
Stress-free in seat 35B
For 30 years, British Airways has offered reluctant
flyers the chance to confront their fears –
explaining everything from ‘that noise’ to
take-offs, training and dreaded turbulence
FEATURES
5
33
34
36
38
43
REGULARS
Comment
Straight & Level
Letters
Classified
Jobs
Working Week
NEXT WEEK
HISTORY
We celebrate the A320,
some 30 years after its first
flight. Plus, an Australian
overview ahead of Avalon
Airbus
Supplier suggests 747 production could end by 2019
P10.
A-10 to fly on for at least five more years
P17
CIVIL SIMULATOR CENSUS
NOW AVAILABLE ONLINE
www.flightglobal.com/civilsim
flightglobal.com
14-20 February 2017
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Flight International
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Boeing, US Air Force
Leonardo
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AIR TRANSPORT
10
Boeing ‘in talks’ to end 747 production.
United and Delta suffer ACARS dropout issues.
Cairo says Sharm was deliberate
11
Early A380s become museum pieces.
Nosewheel defects led to ERJs leaving runway
12
Lufthansa powers A350 growth plan.
NASA space tests aim to bring airliners closer
13
Study finds pattern in landing incidents
AirTeamImages
CONTENTS
Image of
the week
KLM Cityhopper resumed
services to London City
airport from Amsterdam
Schiphol after an eight-year
absence on 6 February. Its
frequency will increase to
four daily flights from 26
March. Flight Fleets
Analyzer shows the carrier’s
80-seat Fokker 70 PH-KZK
is almost 20 years old
View more great aviation
shots online and in our
weekly tablet edition:
flightglobal.com/
flight-international
KLM Cityhopper
The week in numbers
Proportion of Ryanair delays attributed to air traffic control
issues, according to chief executive Michael O’Leary
90%
Question of the week
Last week, we asked:
737 Max launch user wrangling?
You said:
Flight Dashboard
Total votes:
1,095
Amount received by three Gulf airlines in state subsidies, say
US airline bosses, who want President Trump to take action
$50
bn
143
Bragging rights only
713 votes
65%
Flight Dashboard
Of historical value only
321 votes
29%
Genuine money-spinner
61 votes
6%
Flight Dashboard
Number of units delivered by Russia’s United Aircraft last
year; a slight reduction, blamed on a fall in military volumes
This week, we ask:
Which giant will end production first?
❑
Airbus A380
❑
Boeing 747
Vote at
flightglobal.com
FlightGlobal’s premium news and data service delivers breaking air transport stories with
profiles, schedules, and fleet, financial and traffic information
flightglobal.com/dashboard
Download the latest Commercial Engines Report
now with further enhanced data and in-depth market analysis
flightglobal.com/commengines
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COMMENT
Bailing Bombardier
The airframer’s latest taxpayer cash injection is likely to provoke a dispute with Brazil that
could last years. It is unclear whether it will be enough to save the CSeries and the company
ombardier has picked up another C$372.5 million
($282 million) from Canadian taxpayers to repair a
fractured balance sheet as it enters the most difficult
phase of a multi-year financial rebuilding campaign.
After enduring a two-and-a-half-year delay with the
CSeries and two-year lag on the Global 7000, the
company now faces the existential challenge of ramping
up deliveries of a loss-making commercial aircraft that is
not expected to enter the black until 2020 at least.
At the same time, its sales team has to persuade new
customers to pay a price that yields a profit. After book-
ing a $500 million provision in 2016 to cover losses on
sales to Air Baltic, Air Canada and Delta Air Lines, that
particular feat remains elusive – despite the type’s un-
disputed fuel efficiency advantage in the 125-150-seat
segment and class-leading flight control and materials
technologies. So far, airlines haven’t been convinced.
B
How much more do you need?
If Bombardier survives on 28.2%
of the amount it requested, so
much the better for all involved
So the Montreal-based airframer needs all the
financial help it can get, and Canadians have obliged.
In addition to contributing $350 million in repayable
contributions from the federal government to launch
the CSeries in 2005, the Quebec provincial administra-
tion in 2016 invested $1.5 billion in Bombardier’s rail
division and another $1 billion in a joint venture with
the company to manage the CSeries programme.
The question now is if that is enough. Until a few
months ago, Bombardier had called on Ottawa to
become an equal partner with Quebec in the CSeries
joint venture, implying a $1 billion commitment. Nota-
bly, the Trudeau government’s final offer – $282 mil-
lion – falls far short. Moreover, the majority of the cen-
tral government’s repayable contributions will be
devoted to supporting development of the Global 7000,
leaving only a minor share to help get the CSeries
through a production ramp-up over the next four years.
Perhaps this is good news for Bombardier. If the com-
pany can survive on 28.2% of the amount it requested
from Ottawa, so much the better for all involved. The
government’s contribution also appears to come without
any strings, such as demands to reorganise the compa-
ny’s ownership structure to disempower members of the
Beaudoin and Bombardier families.
The full costs of Bombardier’s financial rescue are still
to be counted. The formal launch of Brazil’s case against
the bail-out in the World Trade Organization began on 7
February, and that is likely to trigger a multi-year
dispute that will scrutinise Brazil’s support for Embraer
as much as Bombardier’s backing from Canada.
■
See This Week P7
Past glories
ot long ago it was the future. Now the A380 is of-
ficially a museum piece. Two flight test examples
of the world’s biggest airliner are set to spend the rest of
their lives in heritage centres in Paris and Toulouse.
To be fair to the slow-selling superjumbo, lots of
other types end up as dusty exhibits while still in the
full flush of production – in February, curators also got
their hands on the A320 testbed.
But the fate of the early A380s – just 12 years after
they left the factory – symbolises perhaps the failure of a
staggeringly ambitious project. Like its museum-mate
Concorde, the twin-deck airliner exemplified European
aerospace ingenuity, but it has struggled to find a mass
market beyond its one true believer, Emirates.
N
Stay up to date with the latest
news and analysis from the
commercial aviation sector:
flightglobal.com/dashboard
When it comes to the latest version of the original
jumbo, prospects too may be bleak, with rumours that
Boeing is preparing to wind-up 747-8 production.
For Seattle, the survival of its largest airliner matters
less. After leading a long-haul travel revolution, 747s
have been museum fixtures for years. The 747-8 was
simply an effort by Boeing to extend the life of one of
the most successful aircraft designs of all time.
For the A380, the next three years are crucial. Unless
Airbus can somehow persuade so-far sceptical blue-
chip airlines that the superjumbo is a truly transforma-
tive type, it will not just be two test aircraft preserved
for posterity. The whole programme will be history.
■
See Air Transport P10 & P11
14-20 February 2017
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