A sign of the times

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By TESTCustomwebLP TESTCustomwebLP June 15, 2015 19:22

A sign of the times

Without doubt the main news story of the aviation sector remains the Southwest and Delta wholesale domestic fare increases, Delta took the lead and then to the joy and surprise of many investors, Southwest increased every domestic fare by $3 one-way. There is an opening for all US airlines to now increase fares across the board. Those investors who increased their holdings last month will be most pleased indeed.
In Paris: The Airbus A330-300R order from Saudi Arabian Airlines this morning is a highlight of a show that many thought would signal a slowing of aircraft orders as all eyes turn to the delivery cycle. In fact this has been the thought for the past four or five years as we move towards air show season but today, as with other Air Show openings of late, the orders keep coming thick and fast. The A330-300R is a great niche aircraft but one order alone does not fill anyone with much confidence.

Massive increases in production rates by Airbus and Boeing are now causing the most headaches across the industry. Many have been worrying for some time about the ability of CFMi to meet delivery demands over the coming years and thus it was interesting to note that over the weekend CFM’s François Bastin was quoted as saying, “There are restrictions to how fast we can ramp up,” but in a separate interview the same day Jean-Paul Ebanga, President of CFMi stated: “We are really serious about delivering on promises,”  continuing the long-standing company line that CFMi will meet all commitments both on time and with the right fuel burn savings.

With Boeing increasing production to 47 737s a month in 2017 and 52 in 2018 and maybe 60 or so by the end of the decade and with Airbus is ramping up to 50 A320s per month and it hopes close to 60 per month by the end of the decade, CFMi has its work cut out to keep pace.

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By TESTCustomwebLP TESTCustomwebLP June 15, 2015 19:22