Yikes. It’s only 5:27 here. But, it’s 8:27 in New York.
The day is gone. Where did it go?
Hi there. Reporting in from today’s session at the ISTAT Conference being held at the J.W. Marriott Desert Ridge Resort.
Quick fact: There are more than 1000 people registered for this event this year. Just amazing.
Everybody seems to be happy. Lessors are making money. Banks are making money. Investment firms are making money. Airplane manufacturers are, for the most part, making money.
That is why this conference is usually much different than one that concentrates on airline people. At this one, everyone is usually making money. Good economy, bad economy. It really doesn’t make much difference.
We heard from John Leahy today, head of Airbus. I have to say, it was probably the most humble presentation I’ve heard him give at ISTAT. Ever. And that was a good thing. He made fun of the company’s predicament — wrapped around slides that showed why the Airbus A330 still kicks butt, why the A350 will out-perform the 787, and why the A380 is still a wanted beast — at least for passenger airlines.
One thing is for sure — John is one of the best salespeople out there. Period. And he was in rare form today. Humble, apologetic, and humorous. It was the only way to play the situation — and he did a good job at it.
Tomorrow, it’s Scott Carson’s turn to give us his dog and pony show about Boeing and its current status. As my seat mate said to me today, “Tomorrow all those columns will be reversed and the Boeing airplane will be the one that is least expensive, most efficient, and better on the environment.”
No doubt.
US Airways’ CEO Doug Parker kicked off the conference this morning — speaking mostly about industry consolidation. He says, and his comments were echoed by several panelists later in the day, that for now, consolidation in the industry is a dead issue. Airlines are feeling too fat and happy now — everyone will have to wait for the next downturn.
I agree.
Speaking of, there doesn’t seem to be much positive sentiment for the AirTran deal out here. At least not with the folks I’ve talked to. What’s the biggest reason I hear for a lack of support? Bad timing.
They should have tried to make a play for Midwest, or pushed the issue, when Midwest was barely alive and gasping for air. Not now.
More later.
So…did Doug talk about his computer issues at the conference?! Sorry, couldn’t resist.
Given the planned B787 double roll-out Sunday July 8, John Leahy’s reported comments yesterday at ISTAT about a six-month delay on the B787 program were very strange as they’re not accurate, from what I understand (tho he did say he doesn’t have any particular knowledge about the B787 program schedule).
A350 compensation payments: Leahy says the $657 million in last week’s EADS accounts that Airbus has earmarked for the A350XWB are offset discounts to help pay for conversions from the old to the new: about 91 ‘conversions’ remain to be made, after Finnair; that’s $7.2m per aircraft, or 4.1% of the old $171m sticker price. Finnair negotiated $45m per, or 26.3%. Spread over the remaining A350s, that level of compensation would total $3.4bn… so that can’t be right. The total compensation bill isn’t $657m unless Qatar and USAir cancel.
But the 60 Qatari A350s would be subject to a combined package, no doubt, and Airbus is financing the 25 A350s planned for USAirways. Finnair has already cost Airbus $405m (9 x $45m), so that leaves $252m for the six or so aircraft remaining — or $42m per…
Leahy also said, “…the A350 will be built in large sections…” which definitely suggests fuselage barrels not panels, as was the earlier plan. Like Boeing did with the B787, in other words.