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(Elle) #1

THIS WEEK


ightglobal.com 8-14 March 2016 | Flight International | 7

Tianjin starts
widebody
preparations
THIS WEEK P

A


irbus chief operating officer
for customers John Leahy
now thinks a market exists for a
45-seat stretch of the A350-1000,
after speaking to multiple airlines.
“I’m the one that started out
with probably the most scepti-
cism of is there really a market for
45 more seats,” Leahy said on the
sidelines of the ISTAT Americas
conference in Phoenix, Arizona,
on 29 February. “Now I think
there is some market.”
The shift in stance comes after a
months-long and continuing se-
ries of discussions with custom-
ers, with Leahy seeing at least one
airline at the event “to talk specifi-
cally about stretching it”. The re-
sponse from carriers so far has
been “positive” about launching a
further stretch to compete with
Boeing’s 400-seat-class 777-9.
Leahy’s comments stop short of
a formal commitment to launch
the programme, but he says more
details could be released in July at
the Farnborough air show.
“We might say we’ve talked to
the airlines and they don’t think
there’s that big of a market there.
We might say there is a market
and we’re going to launch it before
the end of the year,” he suggests.

H


oneywell has withdrawn a
controversial bid to acquire
rival aerospace engine and
systems supplier United Tech-
nologies (UTC).
The proposed $90.7 billion ac-
quisition had drawn criticism
from UTC and major customers,
including Airbus and Embraer –
where executives raised concerns
that a combination would result
in a concentration of too much
market power in a single supplier.
On 1 March, Honeywell said
its decision to drop the bid was
“due to [UTC’s] unwillingness to
engage in negotiations.” The
company adds that it “strongly

F


inmeccanica Helicopters in-
tends to compete for two sub-
stantial US military require-
ments, offering the 15-seat
AW139 as a replacement for the
US Air Force’s 62 Bell UH-1Ns
and the AW119 Koala for a US
Navy training programme.
Divisional managing director
Daniele Romiti – who confirmed
the proposals during the HAI
Heli-Expo event in Louisville,
Kentucky on 29 February – says
that if successful, both types
would be delivered through the
company’s rotorcraft plant in
Philadelphia, Pennsylvania.
“The [AW]139 is the best fit for
the [air force] mission,” he says.
“The [AW]119 is the perfect size
for a [navy] training helicopter,
with enough power to allow it to
simulate all the significant ma-
noeuvring capabilities that are a
baseline for pilots.” The USN will
replace up to 117 Bell 206-based
TH-57 Sea Rangers.
Airbus Helicopters says it could
offer its H125, H130 or UH-72A
Lakota for the requirements, with
production to occur in Columbus,
Mississippi. ■
See Show Report P

disagrees” with a claim by UTC
executives that international
anti-trust regulators would have
destroyed the value of any deal

by requiring spin-offs of overlap-
ping technologies.
Honeywell also claims that
UTC had made two separate

attempts to form a combination
of the two companies, in May
2011 and April 2015. After ap-
proaching UTC on 19 February, it
“had hoped to continue amicable
and quiet discussions”.
“We were told by them during
the meeting that such a combina-
tion would be fabulous, they
would take it very seriously, and
they would get back to us with
questions within a week, in an-
ticipation of their upcoming
Board meeting,” Honeywell says.
Responding to the company’s
cessation of interest, UTC de-
scribes the Honeywell withdrawal
as the “appropriate outcome”. ■

Bitter end to Honeywell’s UTC mega-merger plans


CONSOLIDATION STEPHEN TRIMBLE WASHINGTON DC

REQUIREMENTS

Finmeccanica


in pursuit of US


military deals


PROGRAMME STEPHEN TRIMBLE PHOENIX

A350-1000 may stretch out


Leahy shifts position on expected market for increased-capacity widebody to rival 777-

Final assembly of the -1000 model began in Toulouse last month

Embraer

Airbus

Companies will be
major suppliers on
Embraer E190-E

Speaking during a panel
discussion, Oriel co-founder and
senior appraiser Olga Razzhivina
strongly supported a launch deci-
sion. “I think they should do it as
soon as possible,” she says.
“Airbus has always been lagging
in the 777-300ER market, and
they need something to compete
with the 777X. And the engine is
there.”
Leahy agrees that Boeing
found a “sweet spot” with the
777-300ER. Airbus launched the
A350-1000 to capture the re-
placement market for its rival’s
record-selling twin-aisle. But he

disagrees with Seattle’s decision
to replace the 360-seat-class
product with the 777-9, which
will feature about 40 more seats.
“The 777-300ER market didn’t
all just magically shift because
[Boeing] wanted it to,” he says.
“Most of the market stayed there.”
Leahy declines to be specific
about the technical challenge
posed by a new A350 family
member. “It depends on what we
actually do: how many frames we
stretch the airframe, how much
higher we take the maximum
take-off weight. And that’s not
been finalised.” ■

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