//
archives

ATR-72-600

This tag is associated with 6 posts

Possibly the ‘WORST AIRLINE’ in the world today financially, South African based Fastjet Group (once a LCC with 3 x A319’s, ex-Fly540), now just a point to point regional 2 x E190’s, 3 x ERJ145’s. Just received $10 million from shareholders to stay alive, after losing $48 million in 2016 on revenues of $68.5 million (-70% loss margin), and in 2017 it lost $24.5 million on revenues of $46.2 million (-53% loss margin) while it received $72.8 million in new investment in the same year along on top of its $35.2 million in debt. With cash balance down to $3.3 million on June 18, 2018 it was on the verge of collapse, having “burned” $16.7 million in 6 months and the investors have saved its ass again, but WHY? This fastjet has lost $303.4 million since 2012 on revenues of $308.1 million (-98% loss margin), and retained earnings at the end of 2017 were at a negative $338.5 million? its yield ($/RPK) is lower than its CASK, for a 108% breakeven load factor? Yet more money is forthcoming? as are 3 new ATR-72-600s’ to add more capacity and it wants to buy South Africa’s regional airline, Federal Air (aka FedAir, runs 18 x CE-208’s to Beech 1900D’s)? WHERE is the light at the end of the tunnel for this LOSER?

Posted by ⋅

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   July 9, 2018     Tomas’ Comment:   So Fastjet gets another $10 million? this is the troubled airline that lost a ridiculous $48 million in 2016 on revenues of $68.5 million (-70% loss margin), then came in a new team in August 2016 and … Continue reading →

ABSTRACT: Bombardier announces its 4th round of lay-offs in 17 months, another 1,750 employees are let go on top of 5,200 laid-off already. The sacred “CASH COW” of Bombardier Aerospace, the high margin Ultra-Long Range Global brand is facing a softening in its market segment. The Bombardier Global brand (the $52M G5000 and $62M G6000) keeps Bombardier Aerospace alive, generating $4.5B (on 80 deliveries) in revenue in 2014 (43% of Aerospace revenue, 60% of Business Jet revenue with only 27% of deliveries). New competition from the Gulfstream’s G500/G600 and the Dassault Falcon 8X is threatening Global sales and margins at a time when Bombardier is bleeding cash certifying the CSeries and its new Globals ($75M G7000 and $71M G8000). Presently Bombardier Commercial has only 90 CRJ’s in backlog (18 months of production) and only 52 Q400’s in backlog (26 months of production), while the CSeries with $5.3B in deferred program costs and big price discounting by Airbus, Boeing and Embraer, will see every CSeries sold at a HUGE loss for many years to come. Now Bombardier is looking to sell its rail unit to raise cash, and in all seriousness all of this leaves the new Global 7000 and 8000 as the only hope for a brighter future at Bombardier Aerospace, and the possibility of a future Chinese acquisition of Bombardier Commercial (aka “Combardier”) is very real.

Posted by ⋅ ⋅ 16 Comments

Once again Bombardier has acknowledged that things are not well with the world’s only plane and train manufacturer, and will lay-off another 1,750 employees on top of the 5,200 already announced since January 21, 2014. The big hit will be in Montreal (completions) with 1,000 employees, Toronto (assembly) with 480 employees and Belfast, Ireland with … Continue reading →

ABSTRACT: Bombardier may have its CSeries launch customer in newly re-branded Lufthansa Group owned Swiss Global Air Lines which ‘should’ get the aircraft by 1Q/2016 ? at the earliest, while Bombardier desperately tries to ‘re-position’ the Q400 as a viable ATR-72-600 competitor with a “secret new technique” of slowing it down for better fuel economy and trip costs ?? the Q400 is $10 million more expensive, it uses 104% more power (shp), therefore it burns 40% more block fuel, engine maintenance is more expensive on PW150 than PW127 so how can it be economically close to the ATR which out sells the Q400 by a wide margin even with deep discounting on the Q400, meanwhile experts say the CSeries needs to be discounted by 50% to get the needed BIG airline orders as that is what BIG airlines expect, welcome to the BIG league Bombardier where huge discounts (30% to 50%) by Airbus and Boeing are the norm rather than the exception which can be up to 65%, and you can’t win a price war against Boeing or Airbus, can Bombardier even afford to heavily discount now that break-even has to be 580+ units as the CSeries program cost grows to $5.4 billion from an initial $3.4 billion and production is planned at only 10 per month ? break-even is now 6 years of production, can it afford NOT to discount with sales still stuck at a scant 243 “firm” orders (some highly questionable) after 6 years and NO major US airline order in sight ? meanwhile Lufthansa Group’s Austrian Airlines takes 17 x E195’s over CS100’s just like Air Canada kept its 25 x E190’s instead of buying the CSeries last summer, both after a thorough cost evaluation, so what gives with the economics of the CSeries ? Learjet without the Learjet 85 has little to offer, a sale of that company should be considered, the ‘good’ news is that Bombardier successfully raised $C 868 million in new equity and $C 2.25 billion in high yield debt to bolster its liquidity problem.

Posted by ⋅

The news at Bombardier Inc. keeps getting worst, as this past week China’s locomotive manufacturers China CNR Corp. was acquired by China CSR Corp. in a $US 26 billion merger, creating a large state owned enterprise (SOE) that will surely give the 3 other large train manufacturers Siemens (Germany), Bombardier (Canada) and Alstom (France) lots … Continue reading →

SUMMARY: Russia’s civil aerospace industry and life after the annexation of Crimea and a new Cold War. Now EU/US have applied 4 rounds of economic sanctions, now its time to add Russia’s Aerospace industry to those sanctions, VLM Airlines plan to bring the Sukhoi SuperJet 100 to Western Europe, appropriate at this time ? and what is the future for Russia’s 6th placed civil aviation industry with a weak Ruble and oil below $50 a barrel and with less than 1% of the global commercial aircraft market (in $ terms) ? will the Irkut MC-21 (to be re-designated as Yak-242 in 2016) even fly now ? Russia now scrambling to have Russians flying on Russian airliners, Bombardier can’t dump the Q400 program fast enough on the Chinese, while ATR can’t build the ATR-72-600 fast enough with 280 in backlog and 160 firm orders in 2014 alone ! While Turkey looks to stretch the AN-158 to 120 seats.

Posted by ⋅ ⋅ 2 Comments

The Russian economy is taking a beating these days, the 4 rounds of EU/US sanctions have hurt a bit but the big hurt comes from falling oil prices (below $US 54 a barrel today) which accounts for 75% of Russia’s exports and the Ruble (RUB) is now down 50% to only 58.5 RUB to one … Continue reading →

This year’s Farnborough Air Show was all about the new Airbus A350 and A330neo and almost everything in the industry looks good, increasing orders, backlogs, airline profits, production, low interest rates and yet several of the regional aircraft manufacturers like Bombardier are struggling to get new orders.

Posted by ⋅

The 2014 Farnborough Air Show is over and once again Airbus and Boeing dominated the show with big deals worth $US 115.5 billion in orders for 697 out of roughly 900 aircraft orders ! for comparison, last year’s Le Bourget Air Show had 1,450 orders worth $295 billion. This year the show was all about … Continue reading →

Is the Overly Optimistic LCC Bubble in Southeast Asia about to Implode after a Splurge of Speculative aircraft orders and a Spree of new LCC’s Recklessly adding too much capacity too quickly ?

Posted by ⋅

Too much of a good thing is not always good in the long run, in Southeast Asia you have LCC’s (low cost carrier) that have over expanded and added to much capacity and ordered too many aircraft and signs of trouble are now popping up, and fast.  The rise of low cost travel in SE … Continue reading →

Categories

Archives

Blogroll

Meta