George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
A350’s are not far off being fully utilised at the moment so how would you increase their operating hours? Agree it could lead to more A350 orders from those airlines that are currently wavering but the production lines are already at full capacity for years into the future so it wouldn’t be a short term benefit.
This is all very good news and will feed straight onto the bottom line once implemented. Gone are the days when RR made their profit on spares and overhaul. With TotalCare (Power by the Hour), RR pays for spares and overhaul and increasing overhaul intervals has a very powerful effect on margins and profits. If TotalCare margins run at 20%, increasing time on wing by 30% increases margins to 56%, an increase of 280%. I was a designer on the Trent’s and used to pull my hair out at the continual push for insignificant cost reductions. They cost a fortune to implement and often reduced reliability. It’s far more productive to have a slightly more expensive engine if it improves time on wing due to the gearing I’ve highlighted above. Full marks to Tufan.
The same happened with RR last week. The day before the results it opened at 330 and dropped to 325 by midday. By close it had recovered to the start price of 330 and then on results day it flew to 368 at the peak (and it’s still 365 at the moment). Those that sold midday the day before results must be kicking themselves.
Your point 4 is nonsense, the Ultrafan is nowhere near operational readiness. There’s not even a plane for it yet. It’s also more likely to be scaled down to form the basis of the return to the narrow body market rather than LH.
RYCEY will open about 30 cents up if the share price doesn’t change much over here before 2:30pm. Will this bring more sellers than buyers? I guess there’s a good chance it could but maybe they look even more favourably on the results than we do. As usual, impossible to predict.
Doesn’t look good news on that front if Reuters have got it right.
https://www.reuters.com/business/aerospace-defense/thai-airways-orders-45-boeing-787s-plus-options-sources-2024-02-08/#:~:text=The%20airplanes%20will%20be%20powered,new%20tab%2C%20the%20sources%20said.
If the volcano erupts, the aviation industry won’t be impacted like it was back in 2010 because a particle density limit of 4mg/m3 has been introduced since then. Back in 2010 there was no safe limit so the planes were grounded. Barring flying through a visible cloud close to an erupting volcano, the planes will keep flying.