Leeham News and Analysis
There's more to real news than a news release.
Bjorn’s Corner: Faster aircraft development. Part 7. Conceptual Design.
By Bjorn Fehrm and Henry Tam
September 12, 2025, ©. Leeham News: We do a series about ideas on how the long development times for large airliners can be shortened. New project talks about cutting development time and reaching certification and production faster than previous projects..
The series will discuss the typical development cycles for an FAA Part 25 aircraft, called a transport category aircraft, and what different ideas there are to reduce the development times.
We will use the Gantt plan in Figure 1 as a base for our discussions.
Figure 1. A generic new Part 25 airliner development plan. Source: Leeham Co. Click to see better.
How’s the next new aircraft produced? Part 3. Boeing: Improving the present.
Subscription Required
By the Leeham News Team
Sept. 11, 2025, © Leeham News: In the third part of our article series about the Production of the next new aircraft, we look at where Boeing is with the present production and how this can develop in preparation for a next-generation aircraft.
Several of Boeing’s production sites have their roots in World War II factories making Bombers for the war effort. Each has built new production lines and modernized them over time.
Figure 1. Boeing 737 factory in Renton (WA). Credit: Boeing.
Boeing has fallen well behind Airbus in commercial aircraft narrowbody sales over the last decade. Poor strategic and tactical decisions, emphasis on shareholder value vs product strategy, poor execution on new commercial, defense, and space programs, and a series of safety crises with its 737 and 787 programs also took tolls, according to many observers, including Richard Aboulafia and Kevin Michaels of Aerodynamic Advisory, and aerospace analyst Ron Epstein of Bank of America.
Boeing has less than 40% market share in the dominant single aisle market, more than $50bn in debt, it’s losing money, and has an aging product line.
For Boeing, a drastic makeover in its aircraft programs, from concept to design to production, is key to its financial and market turnaround.
The Rise and Fall of Boeing, And The Way Back
By Scott Hamilton
Sept. 10, 2025, © Leeham News: The sequel to my book Air Wars, The Global Combat Between Airbus and Boeing, published today on Amazon (US and selected international markets, including France, the UK, Germany, Japan and elsewhere).
The Rise and Fall of Boeing And The Way Back recounts Boeing’s rise to dominance over the piston airliner era of Douglas Aircraft Co. and Lockheed as the modern jet age began in 1958. Boeing captured more than 60% of the market against Douglas and its corporate successor, the McDonnell Douglas Corp. (MDC). Europe’s upstart, Airbus Industries overtook MDC and in the 2000 decade it passed Boeing to become the Number 1 supplier in the world of commercial jetliners.
Embraer E2 Finally Breaks Into The U.S. Market Following 50 Firm Orders +50 Purchase Rights from ULCC Avelo Airlines
By Chris Sloan
Sept. 10, 2025, © Leeham News: Embraer announced today that Embraer’s E2 will finally break into the U.S. market with a firm order from ULCC Avelo for 50 E2-E195s and 50 purchase rights, becoming E2’s 22nd customer. The E2 will enter service with Avelo in mid-2027, with deliveries rolling until 2032. The list-price value of the order is US$4.4 billion, excluding purchase rights.The E2 will be the current 737 NG operator’s first new equipment in the fleet.
The aircraft will pioneer the E2 E2TS (Enhanced Takeoff System) with an increased range benefit with up to 400 additional nmi of range for runways under 5,000 feet, such as Key West, Florida, where Avelo begins service in November. This is an essential factor in new markets, though he didn’t disclose specific routes. “It will get into airports that no one else can,” he adds.
Avelo CEO Andrew Levy said the smaller E2 will be a potent weapon to establish service in new markets that are too large for the 737-700s and 800s. The E2 will enable the airline to expand its existing operations and enter new markets. The company has been looking at the aircraft for two years, which marks the first new aircraft in the airline’s four-year history. “This aircraft will open up opportunities for us that no other aircraft can do. It fits our strategy perfectly,” said Levy.
Airbus CEO Guillaume Faury on Supply Chain, Tariffs, and the Next Generation of Aircraft at US Chamber of Commerce Global Aerospace Summit
By Chris Sloan
Sept. 9, 2025, © Leeham News: At the U.S. Chamber of Commerce Global Aerospace Summit in Washington, D.C., Airbus CEO Guillaume Faury shared an optimistic outlook for Airbus operations speaking on supply chain recovery, production goals, tariffs, sustainability, and next generation aircraft programs.
Supply Chain Challenges and Recovery
Faury claimed that the supply chain picture has changed dramatically for the better compared to 2023. Deliveries from most suppliers are now arriving on time, though he admitted that “The one that is impacting the on-time delivery most is the two engine manufacturers.” For the first half of the year, Airbus is averaging as many as 60 “gliders” per end of momth — aircraft completed but waiting for engines. He said the situation has been improving and that “We hear from our engine colleagues that they expect to be back to what we need to deliver our planning goals. That’s why we are maintaining what we believe we are going to deliver to our customers.”
Engine makers remain in recovery mode, working through shortages of both new engines and spare parts. Airlines’ strong demand ahead of the summer peak adds to the pressure, but Faury noted that manufacturers have been transparent about their timelines. “You can’t be speculating on the fact that everything will go well. You have to factor in crises and recover today,” he said. When asked about Airbus’ target of 820 deliveries in 2025, Faury’s response was confident: “The answer is yes because we see that the supply chain is there, slightly better than we planned. I’m really worried about the engines, but what we hear from our engine colleagues is that they’ll be back before the end of the year.” He explained that many of the delayed aircraft would ultimately be delivered in the second half, once engines are available.
How’s the next new aircraft produced? Part 2. Advancing the State of the Art
Subscription Required
By the Leeham News Team
Sept. 8, 2025, © Leeham News: In the second part of our article series about the Production of the next new aircraft, we look at the latest trends around advancing the state of the art for aircraft production.
Figure 1. The next new airplane, whether from Airbus, Boeing, Embraer or another company, will use AI and other new technologies. Credit: Leeham Co.
Artificial Intelligence (AI) is going to replace human beings, or so claims Elon Musk.
Digital design and digital twin factories are going to dramatically lower costs, speed construction, and improve production efficiency. At least that’s what proponents claim.
While there might be a lot of truth in these claims, it’s not the whole story.
But the drive toward reindustrialization, as one industry consultant calls it, may be a drive that is too theoretical and could overlook the fact that production is done and controlled by humans.
One aerospace company is putting the brakes on the theoretical spin and focusing on the road to higher efficiency by slowing down this transformation in favor of employee training and motivation to emphasize safety over cost-cutting and automation to gain efficiency.
Striking a balance between the reindustrialization theoretical gains and the focus on the human in the system will be tricky. LNA had spent months interviewing companies, consultants, current and former employees of key companies, and researching public-domain information to paint a picture of how production will be transformed in the coming years.
We begin the advancement of the state-of-the-art part of the series with an interview LNA did at the Paris Air Show with the consulting firm Accenture.
Bjorn’s Corner: Faster aircraft development. Part 6. IT support.
By Bjorn Fehrm and Henry Tam.
September 5, 2025, ©. Leeham News: We do a series about ideas on how the long development times for large airliners can be shortened. New project talks about cutting development time and reaching certification and production faster than previous projects.
The series will discuss the typical development cycles for an FAA Part 25 aircraft, called a transport category aircraft, and what different ideas there are to reduce the development times.
We will use the Gantt plan in Figure 1 as a base for our discussions.
Figure 1. A generic new Part 25 airliner development plan. Source: Leeham Co. Click to see better.
How’s the next new aircraft produced? Part 1. The starting point.
Subscription Required
By the Leeham News Team
Sept. 4, 2025, © Leeham News: The coming decade is likely to see announcements of new airplanes from Airbus and Boeing. If Embraer decides to move up into the mainline sector, a new airplane from the Brazilian manufacturer should also be announced in the next few years.
This means the clock is ticking toward program launches anywhere between 2027 and 2030, depending on progress from GE Aerospace, Pratt & Whitney and Rolls-Royce in developing new engines.
New airplane concept: The Boeing New Midmarket Airplane, c. 2019. Credit: Leeham News.
For the airframe manufacturers, there are important steps before a new program can be launched. One is how the aircraft shall be developed. We wrote about it in our series “What’s the Next New Aircraft?”. But equally important is, how shall the next new aircraft be produced? It’s what this seven part series is about.
Since June, LNA has published a series of articles about new airplanes, new technologies, new design and new production processes that must be sorted before any of the OEMs move forward. Across the seven parts of this series, we identify flaws and challenges at both Airbus and Boeing, with lessons to be learned as both airframers reshape their approach for future manufacturing.
Related Stories
- Digital Twin is key to JetZero BWB
- What’s Next in New Aircraft? Part 1
- What’s Next in New Aircraft? Part 2
- What’s Next in New Aircraft? Part 3
- What’s Next in New Aircraft? Part 4
- What’s Next is New Aircraft? Part 5
- Boeing ponders Rate 16/mo for 787
- GE Aims for maturity for GE9X EIS
- Engine Makers Tout Plan A but have Plan B backups
- Pratt & Whitney Canada develops Open Fan engine
- PW says GTF is best engine for next single-aisle airplane
- Boeing’s North Line for 737 in transition now
- GE’s RISE benefits from decades of development
- Collins Aerospace pacing for new materials, production for next new airplane
- Collins Aerospace continues R&D on electrical options despite industry pullback
- P&W pursues “Industrial 4.0” with GTF engine improvements
We call this series “How’s the next new aircraft produced?”. We start by going through where the major OEMs are with their legacy production.
Trump tariffs beginning to hurt US aerospace companies; EU competitors to benefit
Subscription Required
By Scott Hamilton and Karl Sinclair
Sept. 1, 2025, © Leeham News: New policies by President Donald Trump in the first six months of his second administration in trade, with the North Atlantic Treaty Organization (NATO) and the European Union (EU) are causing a what may become a significant shift in defense spending that will benefit European companies.
The added business could strengthen those that also participate in commercial aerospace, to the detriment of US companies, notably Airbus.
US companies that for decades were the major suppliers to allies are already beginning to see European countries redirect spending to EU firms. Following Trump’s imposition of high tariffs on certain EU countries and others on Aug. 1, US defense companies have been hurt. India canceled deliveries of Boeing 737-based P-8A Poseidons.
Figure 1. Boeing P-8, based on the commercial 737 NG. India suspended delivery of the P8 due to the Trump tariffs. Credit: Boeing. Airbus now proposes a rival airplane based on the A321.
Airbus, Rolls-Royce, MTU, and others expect to benefit from these changes. And, as these companies see more defense work coming their way, then—at least in theory—their commercial business will benefit from stronger balance sheets, profits, cash flow, and perhaps the corporations’ technology.
In an interview at the Paris Air Show in June, the consulting firm Accenture told LNA that it is beginning to see key trends and increases in the defense sector.
Figure 2. Spain and Switzerland canceled orders for the Lockheed F-35. Credit: Lockheed. Airbus stands to benefit, among other EU-based defense contractors.
“Obviously, things are changing in terms of the dynamics,” said Jeff Wheless, Growth & Strategy Research Leader at Accenture. “I think certainly from a NATO perspective, I think folks are increasing their spending.”
Mark Rutte, the NATO secretary general, said that Trump’s pressure on NATO countries to increase defense spending to 5% of their budgets paid off. For decades, NATO countries were committed to a 2% spending level, but often failed to meet this commitment.
“Europe is spending by far less money on defense acquisitions than the US,” said Airbus CEO Guillaume Faury in response to an LNA question at the Paris Air Show. “It’s a ratio of one to four or one to five. On top of that, Europe is procuring a lot from the US. I think the message is loud and clear from the U.S. that Europe should take better care of its own security.”
Bjorn’s Corner: Faster aircraft development. Part 5. Market research.
By Bjorn Fehrm and Henry Tam
August 29, 2025, ©. Leeham News: We do a series about ideas on how the long development times for large airliners can be shortened. New project talks about cutting development time and reaching certification and production faster than previous projects.
The series will discuss the typical development cycles for an FAA Part 25 aircraft, called a transport category aircraft, and what different ideas there are to reduce the development times.
We will use the Gantt plan in Figure 1 as a base for our discussions.
Figure 1. A generic new Part 25 airliner development plan. Source: Leeham Co. Click to see better.