Latest news with #TimHepher
The Star
29-07-2025
- Business
- The Star
Exclusive-Boeing/Saab in talks with BAE on UK jet trainer bid, sources say
BAE Systems logo is seen in this illustration taken July 26, 2025. REUTERS/Dado Ruvic/Illustration PARIS/LONDON (Reuters) -Boeing and Sweden's Saab are in talks with Britain's BAE Systems about teaming up on a future replacement of Britain's Hawk trainer in a growing niche of the fast jet industry, three people familiar with the matter said. Boeing and Saab have jointly developed the T-7 advanced trainer for the U.S. Air Force, while Britain has said it plans to replace the out-of-production Hawk fleet, part of which is instantly recognisable through its Red Arrows display team. The proposals are at an early stage and details are still to be worked out, with no guarantee that an agreement can be reached, one of the sources said. "We don't comment on rumour and speculation," a BAE spokesperson said. "Training remains an important pillar of our air sector strategy. We continue to explore and develop our footprint in this area across both live and synthetic capabilities." A spokesperson for Swedish defence firm Saab said: "We have a long-term partnership with Boeing on the co-development of T-7. Saab will not comment on rumours or speculation." Boeing had no immediate comment. In June, Britain's strategic defence review recommended that the Hawk be replaced after decades as Britain's premier military training aircraft and the government said it would welcome interest from UK-based suppliers. (Reporting by Tim Hepher and Sarah Young, Additional reporting by Mike Stone; Editing by Susan Fenton)
Yahoo
02-07-2025
- Business
- Yahoo
Inside the airline seat industry crisis delaying jet deliveries
By Tim Hepher CWMBRAN, Wales (Reuters) -Tucked beneath the armrest of a luxury business class seat in a factory in Wales lies a clue to a global aviation bottleneck that has left many airlines waiting impatiently for new jets. Before the armrest can support the pampered elbow of a premium passenger, a complex manufacturing jigsaw with as many as 3,000 parts from 50 suppliers in 15 countries needs to be meticulously assembled to produce the luxury seat. As air travel grows, this niche but critical part of the aerospace industry is at the centre of efforts to clear a logjam that has contributed to billions of dollars of aircraft delays for industry giants Airbus and Boeing, and higher fares for passengers. "If you look at this, all you would see is a top-level arm cap and think that's very nice," Dafydd Davies, industrial vice president at Safran Seats GB, said during a visit to the company's factory in Cwmbran, South Wales. "If you look below, there is a lot more to the mechanical assembly." To understand the often overlooked issue of how something as outwardly simple as a seat can slow the entire jet supply chain, Reuters spoke to over a dozen people involved in seat making and purchasing, airline chief executives and designers. Coupled with bottlenecks in certification, growing airline demand for bespoke features has made it hard for a fragmented seat industry - only now getting back on its feet after the COVID pandemic - to achieve economies of scale and boost output. "There has been a perfect storm of what would otherwise not be industry-stopping problems," said aircraft interiors expert John Walton, founder of specialist publication The Up Front. "It's still very much a cottage industry." Airbus warned airlines in May that delivery delays could persist for another three years as it works through a backlog of supply problems, which it blames chiefly on engines and seats. With air travel rebounding from the pandemic, airlines will need more than 8 million seats in the next decade, according to a study by Tronos Aviation Consultancy and AeroDynamic Advisory. It's a business worth $52 billion over 10 years. The cabin of a long-haul jet contains some of the world's prime revenue-generating real estate, which is why airlines are prepared to pay $80,000-$100,000 for a business-class seat and an astonishing $1 million for a first-class suite, insiders say. "There are only a few truly differentiated things you can do onboard as an airline: the crew, the seat, the catering. Not so much the aircraft. So that's where we're going in the premium classes," said Lufthansa Group Chief Executive Carsten Spohr. ALADDIN'S CAVE At the airline industry's annual Oscars every April in the German city of Hamburg, honours are handed out for inventions such as smart lavatories, smart seats and even smart bins. Entrance to the Aircraft Interiors exhibition is strictly by invitation and rows of showrooms are protected by security worthy of a jewellery store. Inside, each is an Aladdin's cave of fast connectivity, eco-friendly materials and recently launched comforts such as headrests with built in audio. The most advanced innovations are even further out of sight. "It's a secretive world. Sometimes they have the little back rooms where they've got a seat or product they haven't publicly talked about," Steven Greenway, CEO of Saudi carrier Flyadeal, said as he shopped for premium seats for Airbus A330neo jets. But behind the curtain is an industry struggling to graduate from a craftsman-like approach and small production runs to industrial scale - despite waves of consolidation which have whittled the sector down to two main rivals in premium seats: France's Safran and RTX unit Collins Aerospace. Then comes Germany's Recaro Aircraft Seating, which dominates economy seating but has struggled to break into premium, and rivals including China-owned Thompson Aero Seating and ventures backed by Airbus and Boeing: Stelia and Elevate. "They compete on innovation, yes, but when they produce, it's not as reliable as the car industry," said Lufthansa's Spohr, whose airline has waited months for Boeing 787s grounded by missing seats, commenting on the overall seat industry. Longer ranges for smaller planes have also triggered a scramble to adapt premium seat designs to tighter spaces. Even the tapered shape of a fuselage and differences between left and right mean few luxury seats are exactly the same. Added to that are tough certification requirements designed to protect head impact, and a dearth of certification engineers. Seats typically last about seven years whereas planes themselves fly for 20-25 years, so even when jets are finally delivered, the need for new seats soon comes around again. "It's been a problem for 20 years. It's not just a recent issue. But I think it's got worse," Willie Walsh, director general of the International Air Transport Association and former head of British Airways, told Reuters. INDUSTRY REBOOT Failing to put the industry on a more solid footing could crimp the growth plans of airlines or force carriers to fly older planes for longer, and focus more on refurbishments. Now, some seat makers are trying to simplify production as they rebuild fragile global supply chains. Safran is one. Its seats unit finally broke even in the fourth quarter of 2024 after being battered, like many of its rivals, by the slump in demand during the global pandemic. "We've almost had to restart this industry. We've had to ramp back up again. We lost some longevity in talent because they decided to do something else," said Safran Seats Chief Executive Victoria Foy. "The fact that we got 2.5 times more out the door in 2024 than the year before demonstrates we can ramp up," she said in an interview at the company's Cwmbran factory. On the factory floor, chips, screens and motors are pieced together in individual bays rather than on a moving production line since few luxury seats are the same. A walled-off workshop for first-class seats guarantees even more individual attention. "We are managing a similar level of requirements to that of a landing gear or an engine," Foy said. Under pressure to avoid those spiralling out of control, Safran and others are now rethinking the way they build seats to marry the customised flourishes required by many airlines with the cookie-cutter approach needed for efficient assembly. Instead of developing each seat from scratch, manufacturers are looking to re-use underlying designs, much in the way auto makers often use one chassis for different models and brands. Using a limited set of underlying designs allows seat companies to do the basic engineering and certification earlier on, avoiding the risk of delays later in the process. But it's not just about improving the factory floor. Air travel is changing, said Stan Kottke, president of interiors at Collins Aerospace. In the Middle East, more families fly in business class. In the United States, retirees want to travel in an ergonomic seat. Millennials are investing in high-end travel experiences. They all want something different from the typical business nomad and airlines may even have to cater to different users at different times of day, Kottke told Reuters in an interview. "You can build a platform that is deliberately designed for differentiation in a bunch of different directions," he said. STRAINED RELATIONSHIPS The disciplined approach is reshaping negotiations with airlines, where the CEO is often personally involved in the finer points of cabin design. In a change of tone, suppliers are increasingly turning away business rather than chasing every deal, four people with direct knowledge of such talks said. In tenders, the reply "no bid" has become common, as seat suppliers avoid piling up financial risk. The industrial blockage has strained the delicate three-way relationship between planemakers, suppliers and carriers. Airlines often buy seats directly from suppliers such as Safran, Collins or Recaro but get Airbus or Boeing to fit them. Airbus is now exploring ways of charging seat firms penalties for delays that hold up deliveries of jets from its factories, two people familiar with the discussions said. None of the companies commented on contractual matters. Planemakers must also walk a tightrope between marketing the flexibility of their cabins while nudging airlines towards accepting greater standardisation to alleviate supply problems. Airbus has said it is acting to reduce risks to its own ramp-up plans from the "divergent complexity" of bespoke interiors, while Boeing has said the resulting bottlenecks in certification will be a challenge for the rest of this year. The two giants have a powerful ally in the leasing industry. "My advice to all airline CEOs would be ... stop inventing more seats. I know every airline CEO wants to design their own business class seat - don't do it," said Aengus Kelly, chief executive of the world's largest aircraft lessor AerCap. "Take one that is certified, that's a very good product, and you'll get your airplane in the air faster." Airlines aren't willing to give up one of their biggest branding weapons just yet. One of the latest carriers to unveil plush seating, Saudi startup Riyadh Air, ruled out any retreat from customisation. "I want a brand that's unique and that uniqueness is presented in the cabin," CEO Tony Douglas told Reuters. (Additional reporting by Allison Lampert in Montreal, Joanna Plucinska in London, Rajesh Kumar Singh in Chicago and Lisa Barrington in Seoul; Editing by David Clarke) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
21-06-2025
- Business
- Time of India
Macron challenges Europe to rival US, China in space
By Tim Hepher, Giulia Segreti, Makini Brice PARIS: President Emmanuel Macron threw France's backing behind plans for a European satellite manufacturing champion and called for accelerated deployment of Starlink-type satellites as he declared space the new theatre for world power competition. Speaking at the Paris Airshow on Friday, after France moved to take control of Starlink competitor Eutelsat , Macron called for an energetic push spanning launchers to manufacturing and services as he set out a strategy to counter the sprawling rocket-to-telecoms interests of U.S. billionaire Elon Musk. Staged amid the conflict between Israel and Iran, the world's largest aerospace event has mostly been dominated by geopolitical and trade tensions and fragile supply chains, rather than the usual glittering jetliner order announcements. On Friday, attention turned from defence displays to space. "At the intersection of all these public and private questions, as well as civil, military, scientific and industrial ones, space has in some way become a gauge of international power," Macron said in a speech to delegates. Europe has taken a lead in Earth observation but has struggled for years to keep up with the United States and China in a domain now considered as strategic as the planet's oceans. It lost independent access to orbit for more than a year in 2023 following technical problems, delays and a breakdown of ties with Russia over Ukraine that halted use of Soyuz rockets. Despite Europe being the world's largest exporter of satellites, its two main manufacturers - Airbus and a tie-up between Thales and Italy's Leonardo - have struggled to make money and want to pool those activities. "They have our full support and confidence. I want us to build this new champion as soon as possible," Macron said. "This is what will allow us, as Europeans, to have the scale to improve competitiveness and volume. It's a sector consolidation." Under pressure from Musk's cheaper low Earth-orbit Starlink satellites and a shift away from bespoke satellites in higher orbit, Airbus, Thales and Leonardo have said they are discussing plans code-named Project Bromo to forge a combined venture. Previous efforts to pool satellite-making have been thwarted by competition concerns. DEFENCE SPENDING In a third battleground, the importance of satellite services and connectivity has been highlighted by Ukraine. On Thursday, France agreed to inject $1.55 billion into debt-laden Eutelsat, sending its shares soaring. U.S. and Chinese spending on space dwarfs European budgets and insiders say industrial squabbling has curbed co-operation. The European Space Agency says the U.S. accounted for nearly two-thirds of the global space budget in 2023; Europe just 11%. Space budgets may get a lift from defence funds flowing into the sector. But fiscal room for Macron's new agenda is tight. "Partnership between public and private capital will be needed and this requires a considerable effort", said Jean-Pierre Darnis, associate fellow at the Foundation for Strategic Research. France is struggling to get public finances under control after spending spiralled higher last year. Europe is already hiking defence spending after U.S. President Donald Trump's team made clear that the United States was no longer willing to be the main guarantor of Europe's security. "The big story of this show is sovereignty in the wake of some of the statements by (Trump) questioning U.S. commitment to Europe and to NATO," said Vago Muradian, founder of the Defense & Aerospace Report. Macron flew into Le Bourget days before a NATO summit on a French Air Force A400M transport plane - itself a symbol of Europe's shifting priorities after years of battles over costs. The future of Europe's troop plane had been under threat after some of its European NATO sponsor nations including France and Spain slowed the pace of deliveries or cut their orders. Exports have also fallen short of expectations. But Airbus signed an agreement with procurement agency OCCAR at the show to stabilise production until 2029. Weapons makers and buyers are increasingly touting the label "ITAR-free" to avoid getting caught up in U.S. export controls for certain components, a senior European industry official said. ITAR stands for International Traffic in Arms Regulations. Some U.S. suppliers are scoping out ways of offering ITAR-free product lines to avoid being left out by the European spending wave, analysts said. The commercial side of the show fell silent on Friday after being overshadowed by last week's crash of an Air India Boeing 787 jet in India. Boeing sat out any announcements as Airbus and Embraer rolled out deals earlier in the week. Some airlines are shunning such shows to announce purchases in Washington or other capitals as aircraft become a currency of choice in a new style of transactional politics, delegates said. Organisers said the show nonetheless had record attendance.
Yahoo
17-06-2025
- Business
- Yahoo
Airbus strikes deal for up to 150 planes with VietJet
By Tim Hepher PARIS (Reuters) -Airbus struck a deal on Tuesday to sell up to 150 single-aisle aircraft to Vietnamese budget airline VietJet, as the European planemaker continues to rack up business at the Paris Airshow. The companies said they had signed a memorandum of understanding for VietJet to buy 100 more A321neo planes, with the option to add up to a further 50 to the deal in future. The agreement confirmed an earlier Reuters story. A deal for 150 A321neos could be worth around $9.4 billion, according to estimated prices provided by Cirium Ascend. "These modern and efficient aircraft have been instrumental in VietJet's growth," VietJet Chairwoman Nguyen Thi Phuong Thao said in a statement released at a press conference attended by a delegation including several Western bankers. "This landmark agreement represents a vital step in VietJet's growth strategy as a multi-national aviation group." The planes will be delivered from 2030 onwards, and VietJet said it had financing in place for the deal. European planemaker Airbus has announced a flurry of deals at the Paris Airshow, the world's biggest aviation trade fair that opened on Monday. U.S. rival Boeing is expected to have a more subdued show as it focuses on the probe into last week's fatal crash of an Air India Boeing 787 and after it racked up huge deals during U.S. President Donald Trump's recent tour of the Middle East. VietJet, the largest private airline in Vietnam, operates an all-Airbus fleet, apart from two Chinese-made regional jets. The airline has not to date taken delivery of any of the around 200 MAX planes it has ordered from Boeing. Airbus is the main supplier of jets to Vietnam, accounting for 86% of the planes currently operated by Vietnamese airlines. However, the export-dependent Southeast Asian country is under pressure from Washington to buy more U.S. goods. VietJet's latest deal comes only weeks after it ordered 20 A330neo wide-body airliners from Airbus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
16-06-2025
- Business
- Zawya
Riyadh Air orders 25 Airbus A350-1000 jets
Saudi startup Riyadh Air signed a deal at the Paris Airshow on Monday to buy 25 Airbus A350-1000 jets, the planemaker said. The deal, announced shortly after Saudi leasing company AviLease placed an order for Airbus passenger and freighter jets, also includes purchase rights for another 25 planes, Airbus said. Airbus does not publish catalogue prices but the firm part of the Riyadh Air deal is worth around $4.6 billion after typical airline discounts, according to Cirium Ascend estimates. (Reporting by Tim Hepher. Editing by Mark Potter)
