Air Costa on Saturday the 19th, received its third Embraer E190 at Ammam, Jordan. The aircraft’s original lessor is GE Capital Aviation Services (GECAS), and the aircraft previously flew for Saudi’s Flynas. The aircraft is one of two E190s earlier destined for another southern regional yet-to-start airline in India. Both airplanes, MSN 217 and MSN 233 have now been leased by Air Costa. Both aircraft are aged 7 years, and configured with 110 seats in a single class.
The first aircraft, which will be registered VT-LPB, is expected to tomorrow (21st December) fly into Delhi. Air Costa presently operates two E190s, MSN 593 and MSN 608, which are the E190 STD variant. The ones from Flynas are the E190 LR variant, which have a maximum take-off weight that is 2,500 kg heavier, allowing it up to 900 km (500 nautical miles) longer range when compared to the E190 STD, when flying with a load of 100 passengers.
The first of the two E190STD aircraft is expected to enter service on the 26th of December, 2015. On the 25th, Air Costa’s E190STD VT-LVR (MSN 608) will fly out to Jordan for scheduled heavy maintenance. The maintenance-bound aircraft will operate a special Chennai-Bengaluru flight LB712, before proceeding to Jordan. The active fleet at the airline will remain at 3 aircraft, until VT-LVR returns from maintenance, to take the fleet to 4 active aircraft. In November, the airline returned one of its 67 seat E170s (VT-LSR / MSN 278), which took the active fleet down to 3 aircraft. The other E170’s (VT-LNR / MSN 293) lease contract was extended by another nine months. The third E190 will therefore result in no net additions to Air Costa’s fleet size.
Activities such as return of aircraft, and scheduled and unscheduled maintenance of aircraft have led to numerous flight cancellations that threaten profitability in the peak season. Air Costa had last year reported a modest profit in the month of December. Fuel prices have fallen, since then.
Air Costa recently received a no objection from the Ministry towards securing a pan India air operator permit (AOP). According to news sources, Air Costa plans to induct the fourth E190 in February 2016, and commence pan India operations in April 2016. By then, the airline will have a fleet of 5 active aircraft. The airline completes 30 months of operations in March 2016.
Saudi Arabian airline Nas Air, which was later re-branded as Flynas, operated 6 110 seat Embraer E190LRs and 4 118 seat Embraer E195s, but ceased operations of the regional jet a while ago, as the airline transitioned to an Airbus A320 fleet. Of the six E190s, all leased from GECAS, two aircraft, with manufacturer serial number (MSN) 217 and 233 were reportedly to be leased to Bengaluru based FLYeasy, which is yet to obtain its Air Operator Permit (AOP).
Google Earth satellite imagery dated 15th September 2015 of the Jordan Aircraft Maintenance Company (JorAMCO) facility (see the highlighted portion in the image above) at the Queen Alia International Aiport at Jordan’s capital Ammam shows two Embraer E190 aircraft painted in what definitely appears as Flyeasy’s livery. Earlier satellite imagery dated 17th June 2015 shows one E190 in Nasair colors, and one E190 in Flyeasy’s colors parked at the JorAMCO facility.
The Flyeasy livery is very evident in the images, with the dark green winglets, dark green engines, and the dark green paint that follows the vertical stabiliser down to the bottom of the fuselage.
Air Costa’s 112 seat E190 registered VT-LBR, leased from GECAS, today flew into JorAMCO for scheduled maintenance.
Below are zoomed in images of the aircraft, and below that the embedded map. Please click on the image to view in full resolution.
Air Costa, which used to operate 32 daily flights to 9 destinations, will be operating 18 flights to 8 destinations starting today, 16th November, till 26th November, as the airline’s fleet temporarily reduces to just 2 aircraft – one 67 seat Embraer E170 and one 112 seat Embraer E190. No sale of flights on one of the patterns (MAA-HYD-VTZ-BLR-VTZ-HYD-MAA-JAI-MAA) was noticed on the airline’s website. This leads to VTZ not being temporarily served by Air Costa.
VT-LSR, one of the two Embraer E170s, has been pulled out of operations due to the planned return of the aircraft to its lessor. VT-LBR, one of the two Embraer E190s, operated a special Chennai-Bengaluru flight LB709 (the first 7xx flight number for the airline), which is a ferry flight turned commercial flight, before heading off for scheduled maintenance to Jordan via Muscat. This leaves only two airplanes – VT-LNR (E170) and VT-LVR (E190) in the active fleet in the short term.
In contrast to Air Costa cancelling flights, AirAsia India, which presently has one of its Airbus A320 airplanes (VT-BLR) at Hyderabad for scheduled maintenance (Since 1st November), has not allowed operations to be impacted. The airline, which recently received its 6th aircraft (VT-APJ), continues to fly 5 patterns with 5 active aircraft. VT-BLR is expected to return from maintenance today to allow VT-APJ to fly to Delhi to operate additional frequencies on existing routes, from tomorrow. (Edit: VT-BLR flew to Delhi late this morning, and will take on Delhi flights from tomorrow).
Japan’s first commercial jetliner, the Mitsubishi Regional Jet (MRJ) 90 took to the skies at 8:30 in the morning from Japan’s Nagoya airfield, for a flight that lasted nearly 85 minutes long. The flight was conducted by a MRJ 90 STD, registered JA21MJ, with construction (serial) number 10001. The aircraft flew with a constant flap setting, landing gear down and locked, and thrust reversers de-activated.
The first flight marks a major milestone for a program that is significantly delayed. The first flight was planned for 2012.
The 92 seat MRJ 90 has a seating capacity that directly competes with the 88 seat Embraer E175, and the 90 seat Bombardier CRJ 900. However, the aircraft is fitted with Pratt & Whitney’s high bypass Geared Turbofan Engines (GTF), which allow the aircraft superior fuel economics than any sub-100 seat regional jet, today. This is the MRJ 90’s USP.
Below is a comparison of key performance, weights and dimensions between the Bombardier CRJ900, Embraer E175, and the Mitsubishi MRJ 90:
Below is the comparison of ranges between all three aircraft and their sub variants:
The last Japanese commercial airliner program was the YS-11 turboprop airliner, in 1960. The MRJ program, which marks a comeback of the Japanese airliner market after a gap of nearly 60 years, adds an additional player in the regional jet market.
The regional jetliner market today is dominated largely by Embraer and Bombardier, with Embraer grabbing a larger share of the pie. Sukhoi’s Superjet International SSJ 100, a 100 seat regional jetliner, is so far an insignificant player. China’s regional jet, the ARJ 21, hasn’t yet entered service. Mitsubishi becomes the fifth player.
However, Mitsubishi will be the third aircraft program to penetrate the United States Market. 76% of the MRJ 90’s firm orders are from airlines in the United States. 170 aircraft are ordered by three US regional airlines: Trans States Holdings (a holding company for three regional airlines), Sky West, and Eastern Airlines.
A new aircraft brings with it two key questions that affect sales : How reliable will the aircraft be, and how good with the customer support be?
A new aircraft will almost always have issues with reliability before the aircraft ‘matures’ and corrections are made to the production aircraft. This has been seen with the Boeing 787, the Embraer E190 (when it entered service with JetBlue), the Airbus A380 – all new airplanes have their fair share of troubles till the product matures. The MRJ 90 will be no exception.
Customer support, which can sway market shares, has been carefully dealt with, by MRJ. Boeing Commercial Aviation Services, which today is one of the best, will provide Mitsubishi Aircraft with 24/7 customer support including spare parts provisioning, service operations and field services, until Mitsubishi takes service in-house.
Another important aspect for an airplane is the residual value of the aircraft – data that is yet unavailable. Lessors prefer to bet on airplanes that they know for certain will have a good enough market residual value to capitalise on.
Is the MRJ 90 in a good segment?
The MRJ 90 is an airplane with better market prospects than the MRJ 70. Since the beginning of 2009, Embraer has recorded 0 net orders for the 78 seat EMB170 regional jet, and Bombardier has recorded just 28 net orders for the 78 seat CRJ 700. On the other hand, since beginning 2009, Embraer has recorded a net 443 orders for the 88 seat E175 and E175E2 together, and Bombardier has recorded 139 net orders for the 90 seat CRJ 900. The 90 aircraft market has had better prospects over 27 quarters than any other size of regional jets. Below are the order graphs:
The MRJ 90 is in a very hot segment, which can get hotter if scope clauses in the United States are upward revised. The clause today limits US regional airlines to an aircraft weighing no more than 39 tonnes and limited to 76 seats. Unfortunately, the MRJ 90’s minimum maximum takeoff weight is 39.6 tonnes, while the lighter variants of the CRJ 900 and EMB 175 are within this specification.
The MRJ 90 is in a very unique position. Bombardier is not neither developing nor re-engining aircraft that are below 100 seats. The CRJ 700, 900 and 1000 aircraft will soon fade away as Embraer re-engines its aircraft and revises the wings to offer the market better versions (second generation) of the present E175, E190, and E195 regional jet models. Bombardier’s customer support history also works against the manufacturer. This effectively reduces notable competition to just Embraer and Mitsubishi in the sub-100 seat regional aircraft space.
The second generation of the Embraer E175, renamed the E175 E2, will be fitted with engines similar to the MRJ90, matching the MRJ 90’s fuel economics. However, the E175 E2 is expected to enter service only in 2020.
The MRJ 90 on the other hand is expected to enter service in 2017. However, uncertainty looms about the manufacturer sticking to its timeline, as it has not had any proven track record of dealing with jetliner programs in the recent past. Bombardier, an experienced manuafcturer, has slipped the CSeries’ timelines. It will not be surprising if Mitsubishi does the same. But even if the timelines slip by a year, to 2018, Mitsubishi will have atleast a 2 years head start over Embraer in the sub-100 seat regional jet space.
The Draft National Civil Aviation Policy (NCAP) 2015 proposes to boost regional connectivity in the country through the implementation of a Regional Connectivity Scheme (RCS). The RCS is aimed at making financially unviable, but economically important flights on certain regional routes a reality.
But for this to come true, many moves need to be made. The Ministry claims that there are 476 airstrips / aerodromes / airports in the country. Question is, how many of them are worthy of immediate operation? Today, airlines operate into and out of just 76 airports. What is the condition of the remainder airports?
The Ministry, in its bid to promote regional connectivity, must be specific about what it will fund. We touch upon this, and also try to do the numbers about how much money the Ministry may be able to raise, and with that money, how many regional aircraft may be operated. And which aircraft types are the most likely ones for the near term and the long term.
The RCS will spell the boom of regional aviation in India, only if implemented right. But it will also tax regular airlines, and not offer any viability gap funding for these airlines. There are challenges, and there are opportunities. To learn more, please click here.
Air Costa, India’s first regional jet airline, turns 2 tomorrow (15th October 2015). The airline, which is the second airline in India after the now defunct Paramount Airways to operate the Embraer E170s, is terminating lease on the aircraft, making Air Costa perhaps the last Indian operator to employ the 70-80 seat regional jet.
The airline’s two Embraer E170s, registered VT-LSR & VT-LNR, were the first two airplanes for the airline, leased from Embraer’s ECC leasing. The aircraft earlier flew for Gulf Air, which had fitted the cabin with 67 seats : 7 business and 60 economy. The aircraft can pack in a maximum of 78 seats in a single class configuration.
The airline has cancelled up to 4 flights owing to one of the two E170s (VT-LSR) being returned in November. As of today, out of the 32 daily flights the airline used to operate to 9 destinations, it presently operates 25-26 flights. This is further expected to go down to around 15 – 16 flights per day in the next 10 days. When two new Embraer E190s are inducted, the airline will resume the flights previously operated by the E170s starting 1st Dec 2015.
Due to this, Air Costa does not seem to sell for, and operate certain E170 sectors between 25th Oct and 30th Nov (as per the website), till these are operated by the replacement aircraft, an Embraer E190, 1st Dec onwards. These sectors are captured in the table on the left. The airline has opened sales for these sectors for travel December 1st onward.
The airline does not seem to sell (indefinitely, as per the website) the E170 sectors operated by the other aircraft. These include:
Vijayawada <> Hyderabad
Vijayawada <> Chennai
Vijayawada <> Vishakapatnam
Chennai <> Hyderabad (Daily)
Frequencies on routes such as Bengaluru<>Vijayawada has halved.
Air Costa’s two other aircraft – Embraer E190s registered VT-LBR & VT-LVR, leased from GECAS, shall remain in the fleet, one of which would be going for a scheduled maintenance in mid-November. The Embraer E190 is a money maker for the airline, and Air Costa is using the asset to its strength. The 2 E170s will be replaced with 2 E190s in the next 3 months.
Based on studies by The Flying Engineer, small capacity regional jets of less than 100 seats have limited relevance in the Indian market, today. A great way to capture the market is to complement the Airbus A320 / Boeing 737s (180 seat airplanes) with an aircraft of nearly 50% – 60% capacity, making the Embraer E190 with 114 seats (maximum) an ideal airplane for routes with insufficient demand for a 180 seat airplane.
Air Costa will be able to connect Tier II and Tier III cities across the country with any Tier I city once its air operator permit (AOP) is converted from a scheduled southern regional airline to a scheduled (pan-India) airline operator permit. This change of AOP is expected to happen soon. However, the airline’s network will continue to be focused on the regional segment, but at a pan-India level.
With the airline demerging from other projects of the parent company, Air Costa is ready to attract external investments into the airline. It plans to induct 4 aircraft every year, from 2016. By 2018, the airline plans to have a minimum fleet of 12 aircraft and fly to 18 stations.
Air Costa presently operates to 9 destinations. A major network change is expected in light of the change in fleet. Bhubaneswar, Pune, Guwahati, Indore, Patna and Bhopal are expected to be added to the network when the fleet size touches 8.
2015 is turning out to be the third boom in Indian civil aviation. The first was around 1995, when the sole aim was to start airlines. The second boom was in and around 2005 (ten years later), when low cost carriers were a fad. The third boom that hovers around 2015 (ten years after 2005), seems to be the birth of disruptive airlines. AirAsia India, Vistara, and a slew of regionals : Air Costa, Air Pegasus, Trujet, and Flyeasy.
Mainline routes have saturated. The 180 seat jet has been used, and perhaps, abused. Many markets are still too small to have either a 180 seat jet deployed, or too long in distance to be flown by a turboprop. Turboprops cater to short and thin routes, while regional jets, such as the Embraer E-jets, Mitsubishi MRJ, the Bombardier CRJ series and the CSeries cater to long and thin routes. 180 seat single aisle jets are best suited to long and denser routes.
With the saturation of the 180 seat market, the real gap left behind in India is the much needed inter-regional connectivity, mostly the long routes between Tier II, Tier III cities and Tier I cities. That is where the gap is, and Air Costa moved in to exercise a first mover advantage to tap that market. With Air Costa’s growth being slower than initially projected, and a market that is big enough with a high growth rate, Flyeasy seems to move in to tap the untapped market.
Based on hiring drives on Flyeasy’s Facebook page, the airline may fly to Tiruchy, Bagdogra, Ranchi, Varanasi, Indore and Bhubaneshwar from Bangalore. The network is yet unknown at this stage, but considering a regional operating permit and its limitations, the airline may fly a point-to-point network between Bangalore and six stations.
Sources reveal that the airline will be leasing two Embraer E190s from Flynas (formerly known as NASair). NASair had six Embraer E190s in its fleet, of which two have been transferred to Borajet and one to AnadoluJet of Turkey. Three other E190LRs seem to be in storage, of which 7 year olds MSN 217 and 233 are expected to join Flyeasy’s fleet, and presently are at Jordan undergoing ‘C’ checks. Both aircraft are powered by GE CF34-10E7 engines and are configured to seat 110 passengers each in a single class configuration.
MSN 217 is out of the paint shop, in Flyeasy colors, and is expected to be flown into Bangalore this month. The aircraft may be registered with the VT-VVx series, with the first two aircraft expected to be registered VT-VVA and VT-VVB. Maintenance of the aircraft has been outsourced to Airworks.
The airline apparently plans to launch operations with 3 aircraft, and grow the fleet to a total of 5 aircraft within the first 6 months of operations, and discussions with lessors for these aircraft are believed to be in advanced stages. The airline has ambitious plans to grow the fleet to 10 aircraft by July 2017, which seem a bit optimistic.
The airline held a formal application meeting with the DGCA on the 6th of July, 2015. Considering that it takes around 90 days from the formal application meeting to receive the AOP, the airline may receive its AOP towards the end of September, or around early October 2015. This may make the airline open for sales around mid-October 2015, and start commercial operations towards the end of October or early November 2015.
Fleet growth plans, when translated to dates, indicate a fleet of 5 aircraft by April 2016, and thereafter on average one aircraft every 3 months till July 2017, when the fleet size is expected to touch 10.
However, AirAsia India, Air Pegasus, and Air Costa have shown that fleet projections tend to be over optimistic, and are seldom adhered to. The airline plans to induct airplanes through both operating and financing leases.
The real promoters or the source(s) of funding are yet unknown, but the funding seems to be from the Middle East. It is uncertain if there exists foreign direct investment (FDI) or investments from non-resident Indians (NRI).
The airline published the management bios of its 15 heads of departments on its website. Besides a CEO, the airline also has a deputy CEO, Lila Singh Aulakh, who formerly was the director of operations at Air Costa.
Although Air Costa and Flyeasy operate the same aircraft type, the network of Air Costa and the possible destinations of Flyeasy do not overlap. Competition in this case is only notional, with both airlines having no true competitors at this stage.
One very important observation about Flyeasy is the importance the airline gives to the organisational culture. The airline calls its employees a ‘family’. CEO Finn Thaulow, who spent a large part of his airline career with SAS, may have been inspired by Jan Carlzon, who was the CEO of the SAS group between 1981 – 1994. Jan Carlzon transformed SAS from a loss making European airline to a profitable one, by emphasising and cultivating a culture that motivated employees to deliver their best through a feeling of ownership and belonging.
The business model, growth plans and the efficiency of the airline will however be put to test in the speed with which the AOP is secured, and the way in which the airline’s revenues and fleet grow. Customer satisfaction will be another key performance indicator. Airlines with discipline across departments are the most likely to succeed, just like market leader IndiGo, which has benefitted all three stakeholders: the board, employees, and passengers.
Air Costa has cancelled a significant number of flights listed in its approved Summer Schedule. As a startup airline with a different model, it faces issues on many fronts: one of which is an insufficient number of sufficiently qualified pilots to fly its four airplanes: two Embraer E170s and two Embraer E190s.
The sectors affected are those that are operated by its smaller Embraer E170 aircraft-with a seating capacity of 67 each: Vijayawada <-> Hyderabad, Chennai <-> Madurai, Chennai <-> Vijayawada, Vijayawada <-> Vishakhapatnam, Chennai <-> Coimbatore, Coimbatore <-> Bangalore, Bangalore <-> Vijayawada, Bangalore <-> Hyderabad, and some of the Bangalore <-> Chennai and Hyderabad <-> Chennai flights.
The Embraer E170s fly the shorter, thinner southern routes, while the E190s fly the longer, and thicker routes northbound out of the southern region, to Ahmedabad and Jaipur, connecting these cities to Hyderabad, Bangalore, and Chennai. The E190s also fly between Chennai <->Hyderabad, and Chennai <-> Bangalore, and connect Vishakhapatnam to Bangalore and Hyderabad.
The E170s account for 22 flights a day, or 55% of the airline’s daily flights.
The airline is tackling the situation by phone-calling each and every affected customer, explaining the situation and offering a full refund, contrasting a situation in late 2011 when the DGCA had pulled up IndiGo, SpiceJet, and the then-operational Kingfisher Airlines for having allegedly cancelled flights without informing passengers. Although the airline seems to maintain a low key when it comes to publicity, this act seems to highlight the airline’s customer focus: something no airline can afford to ignore, especially at the start-up phase of an airline.
Customer focus and on time performance are key factors for many passengers when choosing between airlines that offer matching fares.
Air Costa’s commercial flight operations commenced on 14th October 2013, exactly 6 months ago. The start-up phase, and the fact that the airline is the only operator of the Embraer E170/E190 airplanes in India, makes this a very challenging period for the airline.
The Reason: Pilot Shortage
The airline presently has 22 pilots qualified to fly on the E170/E190 airplanes. Typically, an airline requires 10 pilots per aircraft, or 5 sets of crew per airplane. With 22 pilots, there are enough to fly just 2 aircraft, leaving the two other airplanes with no crew.
The airline has chosen to fly the E190 airplanes, as its utilization on its network is much higher: 14.5hrs a day, which is upto nearly 2.5hours more than the E170s. Besides, the E190 with 112 seats in an all-economy cabin has a lower operational cost per seat, when compared to the E170.
The airline had planned for a sufficient number of pilots to fly the routes in the summer schedule, starting 5th April 2014, but that plan didn’t materialize. 8 foreign commanders were supposed to have cleared the Foreign Aircrew Temporary Authorization (FATA) examination-an exam conducted by the Indian DGCA to ensure foreign pilots are up to speed with Indian regulations- at least 15 days before Air Costa was to have kicked off its full network under the Summer Schedule. However, the crew did not clear the examination, which is held fortnightly.
Another 21 pilots will be joining the airline in a week, of which are the 8 FATA licence holders. The other 13 type rated pilots are Indians, of which 7 are commanders and 6 first officers. Recently, the airline hired 40 commercial pilots with no previous airline experience. Ground classes for these pilots are in progress at Vijayawada, before they’re sent for their Embraer E170/190 type rating. The type rating program may very likely be conducted at Jordan.
Flights under the approved summer schedule are expected to commence shortly, once the 21 pilots are available.
Air Costa is finding it difficult to have a sufficient number of qualified flight deck crew who may remain on standby, and also faces a shortage of examiners, who are instrumental in the release of Indian commanders and first officers. The airline is the only operator of the Embraer E170/190 family of airplanes, while every Indian other airline flies Boeing 737NGs and Airbus A320 family airplanes, eliminating the possibility of poaching experienced and ready-to-fly-on-type pilots.
The airline plans to add another 3 Embraer E190 aircraft to the fleet, one each in the months of August, October and December. As the fleet and flight crew members grown in number, the airline is expected to be less affected by such operational issues.
One of Air Costa’s two Embraer E170s developed a windshield crack when operating into Bangalore, today, forcing the airplane to stay on ground for a few days till the windshield is replaced. To prevent disruption in operations, one of the E190s will be pulled into commercial service. Air Costa’s E190s seat 112 passengers in a single class, 45 more than their dual-class E170s.
The E190, registered VT-LBR, operated the Air Costa LB649 Hyderabad (ICAO: VOHS, IATA: HYD) – Jaipur (ICAO: VIJP, IATA: JAI) flight, marking the first commercial flight in India involving an Embraer E190. The flight, scheduled to depart at 14:05hrs IST, departed at 15:24hrs IST, picking up a 01:19hr delay due to the unforeseen pull-out of the E190 from parking into line operations, and the pull-out of the E170 from line ops.
The E190s were expected to be inducted into commercial service on 5th April, 2014. This bittersweet incident marks another milestone in Indian regional aviation, while also serving to emphasize how at the start-up phase of an airline, when the fleet is small, the non-availability of one aircraft can have significant operational ramifications.
Air Costa plans to stand out from the competition with its fares, connectivity, and unmatched cabin seating convenience and comfort.
Air Costa yesterday received the approval from the DCGA to fly the Embraer E190s. Air Costa is the first airline in the history of Indian aviation to operate Embraer E190s. The airline started operations in October 2013 with two Embraer E170s.
The two Embraer ERJ E190s, with manufacturer serial numbers 593 and 608, registered VT-LBR, VT-LVR respectively, were delivered to Air Costa towards the second half of December 2013, and are leased from GECAS. However, the approval to fly the E190s arrived only 3 months later, due to exhaustive DGCA paperwork, some of which related to getting the aircraft type approved in India. The airplanes have been parked at Hyderabad-Shamshabad’s Rajiv Gandhi International (ICAO: VOHS IATA: HYD).
The two Embraer E190s are expected to be deployed into commercial service in the first week of April, and will fly the longer routes in the approved summer schedule. Since the ERJ 190’s license endorsement, as recognized by the DGCA, is “EMB170”, and common with the ERJ 170, pilots in the airline can fly both aircraft variants.
The E190s will be based at Chennai, and will be deployed on the following sectors: Chennai-Ahmadabad, Ahmadabad-Bangalore, Bangalore-Jaipur, Jaipur-Hyderabad, Hyderabad-Chennai, Chennai-Bangalore, Bangalore-Vishakhapatnam, Vishakhapatnam – Hyderabad.
Each aircraft will start operations at 0600hrs IST, and fly till 2340hrs IST, accumulating a total of 29 block hours per day over 18 flights, representing 56% of the entire fleet’s utilization. The E190s will be utilized approximately 30% more than the E170.
The Embraer E190s are an all-economy four abreast-single aisle cabin, with 112 seats laid out over 28 rows, with a 29/30-inch seat pitch (some seats will have a comfortable pitch of 30 inches, while the others will have 29 inches). Each of the seats are as wide as 18.25 inches, armrest-armrest, which is a good 1.25inches wider (and more comfortable) than the seats on SpiceJet’s Boeing 737s, and IndiGo, GoAir and Air Asia India’s Airbus A320s, which are all 17 inches wide. In addition, there are no middle seats: only either window or aisle, making the overall experience very comfortable. This comfort will make the airline’s product a preferred one, among regional airlines, today.
The 112 seat E-190 has 62% the capacity of an Airbus A320, which the airline feels is the right capacity for the markets they serve today. Another 4 E190s are expected to join the fleet this year.
Air Costa has been flying the E-170s with load factors greater than 70%.
Three jetliner manufacturers, Airbus, Boeing and Embraer, in alphabetical order, rolled out single aisle firsts in March this year.
It started on March 12th, when Embraer rolled out the first production E175 with fuel burn improvements. New winglets, and fuselage wide aerodynamic “cleanups”, and system optimizations have bettered fuel consumption by 6.4%: a good 1.4% better than the technical team had expected to see in fuel savings, on a “typical flight”, which, according to The Flying Engineer estimates, are in the 500-1000NM region. This 6.4% fuel burn reduction is close to double the figure Airbus achieved with its A320 when it strapped on the winglets it calls Sharklets: between 3-4%, and more than 3 times what Boeing achieved with its 737NG when it rolled out the 737 Performance Improvement Package (PIP) in 2012: 2%.
On March 17th, Airbus announced the final assembly of its A320NEO: the next landmark in mainline single aisle airplanes. The A320NEO will be the first single aisle airplane in its class to enter service, with a new type of engine in this thrust class: the Geared Turbofan Engine. The GTF is expected to set the A320NEO apart from the 737MAX; the latter is expected to fly with the CFM LEAP-1B engine that runs hotter, leaving little room for any engine growth in the future.
On March 20, Boeing rolled out the first Boeing 737NG at increased production rate: 42 airplanes a month, matching what Airbus had achieved almost a year ago: which then was the highest commercial aircraft monthly production rate ever. The interesting feat here is that Boeing achieves this at a single facility, while Airbus gets its 42 airplanes a month at its three final assembly lines: Toulouse, Hamburg, and Tianjin.
As for Bombardier, which is going through a very difficult period, the First CS300: the only aircraft variant in the CSeries program that is relevant today and has garnered much attention from customers, almost twice the firm orders as the shorter variant, the CS100, is in final assembly and the systems are being installed. First flight of the CS300 is expected soon, and the entry into service of the CS300 is expected 6 months after the CS100, the latter slated for the second half of 2015, with the hope that no further program delays are announced.
Embraer has signed a definitive agreement with Air Costa for a firm order for 50 E-Jets E2s with an additional 50 purchase rights. The acquisition is a mix of 25 E190-E2s and 25 E195-E2s and has an estimated value of USD 2.94 billion based on 2014 list prices.
Air Costa has become the first customer of E-Jet E2s in the Indian market and will take delivery of the E190-E2 in 2018. The E195-E2 is scheduled to enter service in 2019. Today, the airline flies four E-Jets: two E170s (VT-LNR, VT-LSR) and two E190s (VT-LBR, VT-LVR).
According to an Embraer press release, “The three new airplanes (E175-E2, E190-E2, and E195-E2) have geared turbofan engines from Pratt & Whitney, new aerodynamically advanced wings, full fly-by-wire flight controls, and advancements in other systems that will deliver double-digit improvements in fuel burn, maintenance costs, emissions, and external noise compared to current-generation E-Jets."
The A-A-B-B-E aircraft manufacturers, namely, Airbus-ATR-Boeing-Bombardier-Embraer, have all announce their 2013 orders and deliveries.
Boeing announced its tally on 6th, Airbus on 13th, Embraer on 15th, Bombardier on 20th, and ATR on 23rd January, 2014. (today).
The results get sorted as: Medium-Long Haul Jetliners: Airbus v/s Boeing, Regional Jet: Embraer v/s Bombardier, and Turboprops: Bombardier v/s ATR.
Medium-Long Haul Jetliners: Airbus v/s Boeing
Boeing made more airplanes and sold and retained more airplane orders (based on NET orders) than Airbus. The single aisle family is the best performing airplanes for both manufacturers. The Quad Jet programs aren’t doing well. Lufthansa is the only operator of the 747-8 intercontinental: the passenger version of the 747-8.
Regional Jet: Embraer v/s Bombardier
Embraer seems to be steaming ahead of Bombardier’s regional jet programs. 5 orders of the E170 were cancelled, while 100 E175E2, 25 E190E2, and 25 E195E2 orders were placed. 3 CS100 orders were cancelled, while 37 CS300 orders were booked.
Embraer has emerged as the world’s largest manufacturer of commercial jets up to 130 seats.
Turboprops: Bombardier v/s ATR.
The Bombardier Q400 Turboprop program is nowhere close to the performance of the ATR 72/42 program. The above figures include 10 ATR42-600 sales and 7 ATR42-600 deliveries.
Airbus’ marketing seems to have gone on a slightly unrealistic overdrive, with its “Felt squashed on a recent flight? It’s not you, it’s the seat" campaign, which states:
“Airbus offers an entire product line of modern, efficient jetliners designed for today’s standard of passenger comfort: at least an 18-inch wide seat in economy class."
That statement isn’t true. Data published by Airbus shows that the A320 family’s cabin can have either 18 inch wide seats and a 19 inch aisle, or 17 inch wide seats and a 25 inch aisle. Indigo Airlines has the 17 inch seat option. The campaign doesn’t explicitly mention the “long haul economy standard” set by Airbus, and slyly brings the A320 into the picture as well.
“The company’s entire product line is designed for modern comfort standards, ranging from the single-aisle A320 Family to the widebody A330 and A350 XWB families and the 21st century flagship A380 jetliner – which has a standard 18.5-inch seat in economy class.“
“Seat width is one of the most important – yet often overlooked – factors for passenger comfort. With an extra inch, compared to the 17-inch industry norm set in the 1950s that is still used by other aircraft manufacturers, Airbus jetliners offers travellers more personal space and room for lateral movement."
Embraer offers 18.25 inch wide seats (though another technical documentation points to 18 inch wide seats) in the economy, across the E Jet series (as per company published data). The C-Series, which has threatened the A318, A319, and in part the A320 members of the A320 family, has seats that (claimed by Bombardier) are a mix of 18.5 inch wise seats and 19 inch seats (see image above). These are far wider, and more comfortable than the seats on the A320, and even the A380 in economy (claimed to be 18.5 inch wide). So, “Airbus cabins are designed to offer passengers and airlines the highest levels of comfort, services and efficiency.“?
Airbus’ inadequate and improper “research", states “It’s not you, it’s the seat" and “the 17-inch industry norm set in the 1950s" in the same page (CLICK HERE). Truth be told, Rebecca Utz, from the University of Utah, presented a paper, “Obesity in America, 1960-2000: Is it an Age, Period, or Cohort Phenomenon?", which shows how its “You" and not the “Seat" that has grown too big to fit in a 17 inch wide seat.
Highlights: The death of the 70 seat regional jet market, shifting market trends, and what airlines seem to trend on: affordable capacity.
50 seat regional jets heralded a new way to travel. Comfort and speed were real reasons, and offering a jet to regional customers, as opposed to a turboprop aircraft, suddenly seemed very attractive. The Embraer ERJ 145, introduced in 1996, and the Bombardier CRJ 100/200, introduced in 1992, both extremely popular 50 seat airplanes, sold 708 airplanes and 935 airplanes, respectively.
Regional aviation only continued to grow, fuelled by more efficient jets that promised good operating economics. According to Bombardier’s study in 1998, there was a growing requirement for larger aircraft in the fleets of the world’s regional airlines. To keep up with the growth in mainline fleets, Bombardier felt that regional fleet must grow in both size and capacity. The company felt that if the regional fleet did not grown beyond 50 seats, the number of 50-seaters required to satisfy demand would quadruple.
Because of this growth, regional airplanes grew in capacity, to match demand. The CRJ 700, a 70 seat regional jet from Bombardier, was introduced in 2001, and the competing Embraer 170 was introduced to airline service in 2004. As airplanes grew in size, the operational costs per seat started to fall, further opening up regional aviation to larger airplanes while gradually declining the smaller regional jet market. The market shifted, and continues to shift towards larger sized regional jets.
The CRJ 100/200 is no longer in production. In 2008, the Embraer 145 had 733 firm orders, which slumped to 708 in 2009, and has remained at that figure, over 4 years till date. By 2011, all orders had been realised through deliveries. The 50 seat jet market effectively and statistically died many, many years ago.
The CRJ 700, when introduced, did exceedingly well. Between 2000 and 2010, the order book grew by 160%, to 344 firm orders. The Embraer 170, which had a late start, touched 194 firm orders in 2009. While these were fairly good figures, the market shift hadn’t stopped.
The Embraer 190, and the CRJ 900 have seen the greatest sales growth. The E-190, when introduced in 2005 with JetBlue, had 185 firm orders. This has seen a fairly steady, and unparalleled growth to 560 in 2013: a growth of 200%. The CRJ1000 was Bombardier’s answer to the E-190, but that entered service very late, almost 5 years later, in December 2010, but firm orders stand at only 70, as of July 2013. The CRJ1000 is not much of a competitor to the E-190; The longest range version of the jet, 1,622NM, falls short of the shortest range version of the E-190: E-190STD at 1800NM. The E-190AR has a range of 2400NM.
While there was such encouraging growth in sales of 100 seat airplanes, The CRJ700 stopped building orders after 2010. In fact, after 2010, 4 firm orders were lost, with the number lazily bouncing back to 347 in 2013. After 2009, The Embraer 170’s firm orders only reduced, and hasn’t recovered since. It’s not the manufacturer. It’s the market, and the 70 seat regional jet isn’t favoured anymore. As of Sep 2013, there is a backlog of only 6 E-170, of which 2 are for Japan Airlines and 4 for ETA Star Aviation, India.
The 78-88 (80) seat E-175 is the next-best received aircraft. Orders for the type are nowhere close to that of its longer, 100 seat E-190, and had stagnated for more than 1 year in the period after 2011, at the level of the dead-market E-170. A sudden surge in orders, of 65% to 315 in 2013, is thanks to Skywest, which placed a large enough order for the type. The 90 seat CRJ900, has 306 firm orders in 2013, and witnessed a 380% surge in orders between 2005 and 2007.
A 2000NM range airplane with the ability to carry 100 passengers has been the hottest selling cake. Add another 16 to 24 seats and the offering, the E-195, isn’t quite as attractive. Bombardier’s response to the E-195 is the 125 CS100, and the unique, hitherto unmatched offering is the 135-160 seat CS300.
Proof that the market is shifting away from 70 seat jets is the fact that Embraer, that has moved forward with its plans to re-engine, significantly re-engineer and update the E-Jets to a “Second generation" of E2 jets, has the E-195-E2, the E-190-E2, and the E-175-E2, but no plans at all for the E-170-E2.
The market needs higher capacity airplanes for greater flexibility, provided that it doesn’t come at the cost of economics and performance. With economically better performing or promising airplanes hitting the market, “affordable capacity" is the market demand.
And since the E-175-E2 is planned for a 2020 Entry into service (EIS): the last amongst all re-engined E-Jets, it’s a sign of the 80 seat regional jetliner’s grave being prepared, next.
*This section is part of a much bigger, comprehensive article on the C-Series by The Flying Engineer.
In this piece, we look into the significance of the E-Jets, particularly the 100 seat E-190, and the need for the Brazilian manufacturer’s launch of the upgraded, “Second generation” E-Jets.
The Embraer E-Jets: Making Regional Sense.
Bombardier stepped into the 70 seat jet space with the introduction of its CRJ700 into commercial operations in 2001, with Brit Air. 3 years later, Embraer introduced its 70 seat jet to commercial operations, with LOT Polish airlines. Till date, 192 Embraer E-170s have been sold, while the 70 seat CRJ700 has sold 347 airplanes.
One Embraer regional jet, that has been very well received, is the 100 seat Embraer 190, which, till date, has raked up 560 orders. No other Bombardier 70+ seat aircraft, including the C-Series has managed to touch those numbers, yet.
The Embraer 190 makes absolute sense. The typical single class cabin of the airplane accommodates 100 passengers comfortably. JetBlue, the largest operator of the E-190 with 59 aircraft, complements its Airbus A320 fleet of 129 aircraft. Jet Blue’s A320s are fitted with 150 seats.
Way back in 2003, when JetBlue had an all-Airbus A320 fleet and the cabins had 156 seats, the break-even load factor (BELF), as published by the airline, was around 72%, corresponding to 112 seats. To open up more routes which would have a demand less than this BELF, the 100 seat Embraer 190 was introduced in 2005. In the light of its reduced A320 seating, and spiralling fuel prices, the airline’s A320’s BELF has only gone up, further stressing the need for the Embraer 190.
Embraer acknowledges that a big advantage for E-Jet operators today is their ability to use the aircraft to “right-size” in lower-density markets.
But also acknowledged in 2010 was the realisation that if Airbus or Boeing re-engine their narrowbodies, and achieve better costs per trip, the advantage enjoyed by the E-Jets would disappear.
The upgrade saga
This left only two options for Embraer: Introduce a clean-sheet airplane that competes with Airbus and Boeing’s popular narrowbody families-A320 and 737-an idea that has played with Embraer since 2009; or do something to the existing offering to retain the regional jet family’s attractiveness to operators.
Late 2011, Embraer formally confirmed its decision to abandon the development of a competing airplane (which otherwise would have put 4 players in the coveted segment, including Bombardier with its C-Series), and instead focus on enhancing the value of the Embraer 170 and 190 families through a possible stretch and a definite re-engine, at an estimated program cost of US$1.7 billion. This was the outcome of Boeing announcing the delivery of the 737Max in 2017: a period too short for Embraer to both hold its grip on the market with its existing offering while developing a competing airliner. This also reflects the industry’s lower appetite for risk.
Embraer started working with E-Jet customers to define the performance goals and technical characteristics of the new aircraft family. One of the considerations was a composite airframe. Early 2012, Air Lease Corp advised Embraer to stretch the Embraer E-190 by 1 row (4 seats) and the E-195 by 2-3 rows (8-12 seats). The aim was to add capacity to compete with the CS100, while allowing for pricing flexibility in the light of much lower development costs associated with an airplane upgrade rather than a clean sheet design. Adding to this advantage is the huge customer base of Embarer’s E-Jets. A customer would prefer an upgrade “within the aircraft family" for near-seamless operational integration, rather than an all-new aircraft.
Embraer claims to be not just re-engining, but investing heavily to achieve the efficiency of a clean-sheet design. In January 2013, Embraer selected the Pratt and Whitney Geared Turbofan PW1000G series to power the second generation E170 and E190/E195 aircraft, which it calls the “E-Jet E2 family". The wings will feature a higher aspect ratio, longer wingspan, and raked wing tips instead of winglets. The landing gear will be lengthened to accommodate the larger engines, and the flight deck will feature the Honeywell’s Primus Epic™ 2 advanced integrated avionics system with large landscape displays, advanced graphics capabilities, and Honeywell’s Next Generation Flight Management System (NGFMS). The new airplanes will be 100% fly-by-wire, unlike the in-production E-Jets.
Unlike the C-Series, the wings for the E-Jet E2 are all metal, as, according to Embraer, composites aren’t cost-effective for such-sized airplanes. Embarer’s late announcement of the selection of the geared turbofan actually stands in its favour: the airframer benefits from Pratt and Whitney’s work on the smaller PW1200G for the Mitsubishi Regional Jet (MRJ), and the larger, mature PW1500G for the C-Series, both of which engine families are almost identical to those being offered for the E-Jets.: The PW1700G for the E175-E2 and the larger PW1900G for the E190/195-E2.
The reason to select the Geared Turbofan is not just the gear in the fan, which optimises fan speeds for greater efficiencies. The significant thermal margins available can allow for future engine thrust upgrades, allowing for further aircraft upgrades with the same engine family.
Plane Facts & 4-cast
The E-175 E2 can seat 88 passengers in a single class, in a comfortable 31" seat pitch. The in-production E-175 can seat only 78 passengers, comfortably, and 88 with an undesirable 29" seat pitch.
The E-190-E2, which is poised to continue the legacy of the well-performing in production E-190, comfortably seats an additional 6 passengers in a uniform 31" seat pitch. The existing E-190 can seat 114 passengers, but with a compromised seating comfort. The fuel efficiencies of the E-190-E2 lend it more range than the E-190.
The E-195-E2 seats 132 passengers in a uniform 31" seat pitch. The In-production E-195 can seat no more than 124 passengers in high capacity, and 116 in single class (with 31% of the seats featuring a 32" pitch, and 69% featuring a 31" pitch). Sometime in 2009, Embraer had studied an aircraft of such capacity, dubbed the E-195X, which would have used the same engines as the E-195. The concept was eventually dropped in 2010 the light of degraded aircraft performance in the absence of a re-engine.
Owing to its poor sales and the drop in demand for 70 seat jets, the E-170 won’t be re-engined.
Embraer’s best bet is on the 106 seat E-190-E2, and hence is focusing all its energy in targeting an entry-into-service (EIS) of mid-2018. The E-195-E2 will follow in 2019, and the E175-E2 in 2020.
Embraer foresees a demand for 6,400 commercial jets with capacity of up to 130 seats, over the next 20 years. With more than 1,200 E-Jets orders, Embraer has achieved a 42% market share in its segment. While Embraer will aggressively compete with Bombardier’s CS100, its present and future E-Jet offering has, and will eclipse Bombardier’s present line up of the CRJ family: CRJ700, CRJ900 and the CRJ1000, all three now marketed with the NextGen suffixes. Embraer is poised to grab a large share of that forecasted market.
*This section builds on research for a comprehensive article on the C-Series by The Flying Engineer.
Bombardier’s success with the CRJ 100/200 airplanes, which eventually sold 935 units, made it explore significantly larger capacity airplanes, in the 100 seat segment. According to Bombardier’s study in 1998, there was a growing requirement for larger aircraft in the fleets of the world’s regional airlines. To keep up with the growth in mainline fleets, Bombardier felt that regional fleet must grow in both size and capacity. The company felt that if the regional fleet did not grown beyond 50 seats, the number of 50-seaters required to satisfy demand would quadruple.
Bombardier identified a gap between its 50-70 seat CRJ series, and the smallest of the Airbus and Boeing single aisle offering: the Airbus A318 and the Being 737-600, both with typical single class capacity of around 120 passengers. Even before a formal launch, Bombardier had unveiled during the Farnborough Air show in 1998 the 88 seat BRJ-X-90 and the 110 seat BRJ-X-110, the “BRJ" short for Bombardier Regional Jet.
The BRJ-X-110 was applauded by airlines as a true 100 seat airplane, unlike attempts by Airbus and Boeing to scale down much larger airplanes. Although during that time, the first of the Brazilian Embraer E-Jets, the 80 seat ERJ 170, competitor to the CRJ700, hadn’t yet taken to the skies, published drawings of the BRJ-X airplanes bore an external resemblance to the new Embraer jets. But the cabin was wider, with a 5 abreast seating.
Threats from the new Embraer jets, which had a significant head start, and the then Fairchild-Dornier’s 50-110 seat regional jetliners, forced Bombardier to rethink the BRJ program. Late 1999, despite having further matured the design of its “paper airplanes", Bombardier switched focus from the BRJ-X-90 to the stretched CRJ700: the 90 seat CRJ 900. According to Michael Graff, the then President of Bombardier Aerospace, “ They (airlines) have told us that a simple stretch of the CRJ 700series rather than an all new aircraft in the 90 seat category will meet their requirements for increased capacity at reduced acquisition and operating costs"
Mid 2000, although the BRJ-X-90 was killed, the entire BRJ program was suspended, but never cancelled. In the March of 2004, the 114 seat Embraer 190 took to the skies on its first flight, and Bombardier had no airplane to compete in that class. In July of the same year, Bombardier announced the development of the C Series as a replacement for the shelved BRJ-X project.
The C Series then had two variants: the 125 seat CS110 and the 145 seat CS130. But after failing to secure significant orders, and in the light of the certification of the Embraer 190 in 2005, the program was shelved in early 2006, and the focus again shifted to lengthening the CRJ series, to a 100 seat CRJ1000.
In the July of 2006, EASA certified the 124 passenger Embraer 195, competing directly with the shelved CS110. Bombardier was trailing its only significant regional jet competitor, Embraer, with no competing airplane.
Early 2007, Bombardier re-commenced work on the C Series program. In the July of 2008, Bombardier officially launched the C Series, with a letter of interest for 60 aircraft and 30 options from Lufthansa.
Having the right product at the right time bode well for the Brazilian airframer. The CRJ 700, 900 and 1000 combined have orders (as of 30 June 2013) of 723 airplanes, of which 91 are unfulfilled. On the other hand, the Brazilian Embraer E-Jets, comprising the E-170/175 and 190/195 families, have total firm orders of 1213, of which 266 are unfulfilled. Bombardier had to stop trailing and start leading, and focus on the clean sheet C Series was the only way out.
*This section is part of a much bigger, comprehensive article on the C-Series by The Flying Engineer.
3. Embraer 190STD: MSN 593, leased from GECAS, yet to be registered in India.
4. Embraer 190AR: MSN 608, leased from GECAS, yet to be registered in India.
The 170AR version has a range of about 2,200NM with 66 passengers. The cabin of the two E-170ARs are dual class: 6 first class seats with a luxurious 40″ seat pitch and 20″ seat width, and 60 economy seats with a very comfortable 32″ seat pitch and 18.25″ seat width.
The Two E-170s are about 3years 7 months old, and were formerly flying for Gulf Air. The E-190s, however, seem to be new airplanes.
The E-190s may also have a dual class cabin: 8 first class seats with a luxurious 38″ seat pitch and 20″ seat width, and 88 economy seats with a comfortable 31″ seat pitch and 18.25″ seat width. The 190STD has a range of about 2000NM with 96 passengers, and the 190AR, with the same payload, has a range of about 2,500NM.