Newswatch 1st August 2017
Both Boeing and Airbus reported Q2 figures, Boeing’s being more upbeat with the market approving of its cost-cutting efforts. Airbus’s news was less positive, reporting a drop in earnings and a cut in the production rate of A380s. Embraer also reported a strong quarter, with a 30% rise in revenue, driven by Services.
The transatlantic market continues to drive activity. While Norwegian takes a breath Virgin, Delta and Air France-KLM announced a JV to create “the most comprehensive transatlantic route network”. IBA waits to see if the venture will impact IAG.
Etihad’s $1bn+ write-down has highlighted the volatility and resetting of some values in the widebody space. On that topic, we recently contributed to an excellent article in Aircraft Commerce looking at the 200-400 seat market.
Some interesting market opportunity articles crossed my desk, with Argentina and India singled out as attractive investments.
Both markets have incredible potential and both require care – and we are a little surprised by the short memories of some.
Remind yourself of how you might mitigate developing market risks by reading our recent article in Airline Economics.
Freighter conversion enquiries continue to rise, and to that end, our next webinar on the Tuesday 14th September, 8.30-9.30 will review mid-life options for pax aircraft with a focus on passenger-to-freighter conversions. You can register your interest here and also check out the illuminating narrowbody P2F article in Aircraft Commerce this month that IBA commented on.