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Old 12-20-2018 | 02:29 PM
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Default A330neo program gets another quiet win

Ok I've been flying with guys complaining that we don't have 78s and they seem to think the 330neo is a slouch.

From AirInsight Weekly

"Based on news that MEA, the national airline of Lebanon, had signed a deal with Rolls-Royce, we can infer the airline has selected the A330neo for its fleet. The rumor mill suggests the model selected is the A330-900.

Currently, the airline has five A330-200s and the order is expected to be for four A330-900s. MEA has been a long-time Airbus customer and sports an all Airbus fleet. The selection of the larger model suggests the airline has plans for longer hauls. The airline's route map shows that its current focus (blue lines) is Europe and some African markets.

But with the A330-900 it can use its own aircraft to serve markets in North America directly, rather than depend on SkyTeam partners.

The selection of the A330-900 by MEA is not a surprise given the airline's loyalty to Airbus. However, there has been some concern with how slowly the market is moving towards the A330neo. The MEA deal comes soon after an earlier deal by Kuwait for A330-800s. Airbus has not formally announced the MEA deal. It is likely to come by year-end when the OEM will announce it's year-end orders - as are other deals that are currently under all sorts of pressure at both big OEMs to close by month end.

The A330neo program has been slow to catch on because the program is focused on replacement and the current A330ceo fleet is young and with low fuel costs, there is no urgency to go for the much more advanced A330neo. However, as the replacement of other models in service approach, key ones being 767s and 777-200ERs, the A330neo becomes a formidable competitor to the 787-8 and -9. These are the markets Airbus will focus on while it waits for the A330ceo fleet to move towards replacement. There are plenty of those aircraft (767/777) for Airbus to focus on first. An example of this is Delta, which has accelerated A330-900 deliveries to replace aging 767s and A330ceos. Delta's 777-200ERs are clearly in Airbus' sights as Delta has shown no interest in the 787, having canceled an order it inherited from Northwest.

From an analysis we previously undertook comparing the A330-900 and the 787-9; the 787 carries 10% less fuel but offers a 3.6% greater payload with 5.5% more range. We estimate, based on Airbus and Boeing data, that for a 5,000NM route flown daily, a 787-9 would cost $36.9m per year compared to $38.8m for the A330-900 at a fuel price of $2.50 per gallon. The A330-900 is nearly as capable as the 787-9 at substantially lower capital cost. Looking at it another way, the ~$37m difference in acquisition costs equates to ~$2m in savings per year for a 787-9 operator. Which means an A330-900 operator potentially has an 18.5-year period to break even, all things being equal and if fuel prices remain low. And it looks like lower fuel prices are here for a while yet. Concern about the "slow" A330neo program may be misplaced because airlines seek the lowest costs and the A330neo offers a compelling case. There are three leasing companies with orders (Avolon, ALC, and BOC) and there likely will be more, as target customers process and build an understanding of what the aircraft can do."

https://mailchi.mp/0840ee36ecc7/airinsight-weekly-3451321?e=96dc92818a
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Old 12-21-2018 | 07:02 AM
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Is Delta so starved for cash that it lacks the CAPEX for the Boeing? How does AeroMexico, Virgin, Air France and KLM afford theirs? Thought they were more cash-strapped than Delta.

Does Delta contract for cheap airplanes, put them in an offshore company and lease them back at higher than market rates to transfer cash?

Originally Posted by Zacks
The carrier expects to return shareholders $2.5 billion in 2019. The company currently has a share repurchase authorization of $5 billion, to be completed in 2020. Free cash flow for 2019 is pegged at $3-$4 billion.
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Old 12-21-2018 | 07:20 AM
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It’s pretty obvious the 787 is superior to the 330neo. We could have gone all 787s like the rest of the world instead of getting the 350/330neo combo. Oh well...
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Old 12-21-2018 | 07:53 AM
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Originally Posted by LumberJack
Looking at it another way, the ~$37m difference in acquisition costs equates to ~$2m in savings per year for a 787-9 operator.
Not sure what this guy is basing acquisition costs on as the 2018 list prices show the 787-9 costing $13M less than the A330-900neo, but obviously what airlines actually pay is far less and subject to negotiation.

https://www.airbus.com/content/dam/c...rices-2018.pdf

Boeing: About Boeing Commercial Airplanes

https://simpleflying.com/airbus-a330...which-is-best/
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Old 12-21-2018 | 08:13 AM
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Originally Posted by TurbineDriver
It’s pretty obvious the 787 is superior to the 330neo. We could have gone all 787s like the rest of the world instead of getting the 350/330neo combo. Oh well...
Right, then we wouldn't have to listen to guy opine EVERY single time we taxi past a 787 (from our 330).
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Old 12-21-2018 | 08:19 AM
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Originally Posted by crewdawg
Right, then we wouldn't have to listen to guy opine EVERY single time we taxi past a 787 (from our 330).
""Everyone has them but us..."

"Man I wish we could get some of those..."

...go fly for Air Tahiti then if you wanna fly a 787 so badly!!
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Old 12-21-2018 | 09:09 AM
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Originally Posted by m3113n1a1
""Everyone has them but us..."

"Man I wish we could get some of those..."

...go fly for Air Tahiti then if you wanna fly a 787 so badly!!

Or go to the 767 .. will open up a bunch of spots for guys who actually want to fly the bus.
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Old 12-21-2018 | 09:36 AM
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You all DO know that the pilots have absolutely NO say in what aircraft the company acquires..............right!?!

Denny
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Old 12-21-2018 | 09:41 AM
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I must have been mistaken. I thought the 787 had a yoke, circa 1930?
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Old 12-21-2018 | 03:29 PM
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Why all the wood for the 787? The trash Panda is a really really nice airplane. It holds more people, and is bigger. And since we pay more for bigger.....
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