Airbus sees regional demand for A220

Airbus’ CEO has played up the prospects for the Bombardier C-Series aircraft in the Middle East. (AFP)
Updated 18 July 2018

Airbus sees regional demand for A220

  • Airbus acquired a majority stake in the C-Series program in October officially rebranding it in April to the A220
  • The US low-cost carrier JetBlue last week became the first purchaser of the aircraft since its rebrand

FARNBOROUGH: Airbus Chief Commercial Officer Eric Schulz has played up the prospects for the Bombardier C-Series aircraft in the Middle East and beyond, hoping carriers will use the single-aisle plane to expand routes.

The European plane maker acquired a majority stake in the C-Series program in October, officially rebranding it in April to the A220, strengthening its offering in the smaller jet sector in competition with arch-rival Boeing.

“Yes, I believe we’ll see orders in every region,” Schulz said when asked about the prospects for Middle Eastern orders for the plane.

“There are many people across the Middle East who are looking at the opportunity to integrate the A220 as a feeder to leverage their routes up to a point where maturity can be on with the single aisle.”

Schulz spoke to Arab News on the second day of the UK’s Farnborough International Airshow, which marked the rebranded A220’s first public appearance.

The US low-cost carrier JetBlue last week became the first purchaser of the aircraft since its rebrand, with an order for 60 of the single-aisle planes.

Airbus on Tuesday announced a commitment from what it described as “a new US airline startup” for 60 A220-300 aircraft, with deliveries due to begin in 2021.

The new airline is backed up by a group of experienced investors led by JetBlue founder David Neeleman, who is also an investor in TAP in Portugal and the controlling shareholder in Brazil’s Azul airlines.

The single-aisle market is expected to dominate commercial plane orders over the next 20 years, according to forecasts released by Boeing on Tuesday.

The US manufacturer expects demand for 31,360 single-aisle planes — representing nearly three quarters of total orders — over the period, an increase of 6.1 percent compared with similar forecasts published last year.

“This $3.5 trillion market is driven in large part by the continued growth of low-cost carriers, strong demand in emerging markets, and increasing replacement demand in markets such as China and Southeast Asia,” Boeing said.

In the face of such growth prospects, Boeing earlier this month agreed to takeover the commercial jetliner business of Brazil’s Embraer, a specialist in smaller passenger planes, in order to better compete better with Airbus in the segment.

Schulz downplayed suggestions of a downturn in orders from Middle East carriers, suggesting that any slowdown in orders from the region’s larger players would come alongside an uptick from other carriers.

“There might be a little bit of a slowdown for some airlines, and there is also some growth for others,” Schulz said.

“We are serving the market, and what we need to do is just continue to serve the market and take the opportunities and the challenges where they are and just deal with them.”

Schulz said that Airbus was “moving forward” with the details of its $16 billion A380 deal with Emirates struck in January.

The deal with the Dubai-based carrier for 36 additional superjumbo planes, the last major deal agreed by Schulz’s predecessor John Leahy, was seen as saving the beleaguered aircraft program, which has struggled to secure new orders.

“Clearly the relationship is fantastic,” Schulz said, having met with Emirates CEO Tim Clark on Monday.

“Clearly they have put a lot of emphasis on the opportunity that their A380 fleet is giving them. They need the plane, we need the plane to be delivered, and yes, it’s all aligned.”


Sweden bans Huawei, ZTE from upcoming 5G networks

Updated 15 min 33 sec ago

Sweden bans Huawei, ZTE from upcoming 5G networks

  • European governments have been reviewing the role of Chinese companies in building their networks
  • Sweden’s security service called China ‘one of the biggest threats against Sweden’
STOCKHOLM: Swedish regulators on Tuesday banned the use of telecom equipment from China’s Huawei and ZTE in its 5G network ahead of the spectrum auction scheduled for next month.
The Swedish Post and Telecom Authority (PTS) said auctions the setting of the license conditions followed assessments by the Swedish Armed Forces and security service.
European governments have been reviewing the role of Chinese companies in building their networks following pressure from the United States, which says they pose a security threat because, among other concerns, Chinese companies and citizens must by law aid the state in intelligence gathering.
Sweden’s security service called China “one of the biggest threats against Sweden.”
The United Kingdom in July ordered Huawei equipment to be purged completely from Britain’s 5G network by 2027, becoming one of the first European countries to do so.
Huawei and ZTE did not immediately respond to requests for comment on the decision by Sweden, home to Ericsson, one of Europe’s leading telecoms equipment suppliers.
“The ban leaves network operators with less options and risks slowing the rollout of 5G in markets where competition is reduced,” said Ben Wood, chief of research at CCS Insight.
The ban is likely to benefit rival telecom equipment makers Ericsson and Finland’s Nokia.
PTS said companies taking part in the auction must remove Huawei and ZTE gear from existing central functions by Jan. 1, 2025.
The regulator defined central functions as equipment used to build the radio access network, the transmission network, the core network and the service and maintenance of the network.
PTS said the license conditions were decided to address the assessments made by the armed forces and security service.
It has approved the participation of Hi3G Access, Net4Mobility, Telia Sverige and Teracom in the planned spectrum auction of 3.5 GHz and 2.3 GHz, key bands crucial for the rollout of 5G.
Tele2 and Telenor will participate together as Net4Mobility to secure spectrum for a joint nationwide 5G network.
Tele2, which uses Huawei equipment in its network, which had earlier called Huawei an important vendor, said the PTS decision “does not change our plans substantially.”
“We may have to phase different costs differently between years to meet security conditions on time,” a spokesman told Reuters.
The 5G spectrum auction was originally planned for early 2020, but last year PTS said it would delay the auction due to a security review. PTS announced in April this year that the auction would begin in November.