ARC NEWS
​Boeing secures orders for four Max 7s from Luxair
June 22, 2023
Luxair has ordered four Boeing 737 Max 7s from the airframer to grow its single-aisle fleet. The deal makes the Luxembourgish carrier the European launch customer for the 737-7, the US airframer highlights. Fleets data indicates that the variant has accumulated a combined 159 orders from three North American customers: US carriers Southwest Airlines (124) and Allegiant Air (30), and Canada's WestJet (five). Luxair chief executive Gilles Feith describes the aircraft as "a perfect match" for the airline, adding: "Seating 160 passengers, the 737-7 will offer flexibility across the Luxair destination network while significantly reducing fuel consumption." The airline has also placed orders for four 737 Max 8s since March. It will initially lease two of these aircraft during the summer, before taking its first directly delivered Max 8, Boeing notes. Luxair currently operates a fleet of 19 aircraft, including eight 737s.


JAL agrees SAF purchase deal with Shell for Los Angeles
June 20, 2023
Japan Airlines (JAL) has signed an agreement with Shell Aviation to replace fuel uplifted in Los Angeles with sustainable aviation fuel (SAF) from 2025. "Under the agreement, Shell will supply JAL with SAF volumes equivalent to its current estimated jet fuel uplifts in Los Angeles over the supply period," the carrier says. The SAF to be supplied emits 75% less CO2 than conventional jet fuel when used neat and the associated lifecycle emission reduction from this agreement amounts to more than 47,000t of CO2 on an annual basis, according to the airline. On 2 May, JAL announced its plan to achieve carbon neutrality by 2050 and has set a goal to reduce 10% of its CO2 emission compared to the 2019 level by fiscal year 2030. "In line with these goals, as interim targets, JAL intends to replace 1% of its total jet fuel consumption with SAF in fiscal year 2025 and 10% in fiscal year 2030," it adds.


​Boeing sees waning demand for regional aircraft
June 20, 2023
Boeing believes that sales of regional aircraft will decline over the next 20 years as airlines shift into larger single-aisle jets in search of capacity and efficiency gains. During a presentation on the US airframer's market outlook at the Paris air show, Boeing vice-president of commercial marketing Darren Hulst said that the regional aircraft market served "largely a replacement" function without huge fresh demand coming down the pipeline. In its market outlook, released just before the show, the manufacturer downgrades its expectation for regional aircraft demand to 1,810 units in the two decades to 2042, compared with 2021's forecast of 2,120 over a 20-year period. Hulst explains that this is because the OEM now sees demand for regional aircraft being pushed into larger single-aisle jets, such as the Boeing 737 Max and Airbus A320neo. This shift is attributed to a number of factors. Firstly, a pilot shortage, particularly pronounced in certain regions such as the USA, means that airlines need to place passengers on higher-capacity aircraft. Secondly, "the value proposition of larger jets becomes more compelling" amid system bottlenecks relating to slots, airport gates and other infrastructure, Hulst adds. Thirdly, airlines are seeking to achieve the lowest-cost capacity in the market, and "regional jets aren't this", argues Hulst. Therefore, he suggests, carriers can therefore replace regional aircraft with a larger single-aisles to increase capacity while improving efficiency. "Where airlines can substitute a larger jet, they are doing that," he says. Boeing does expect that there will be a regional aircraft market for another 30 years or more, but believes it will be fore "almost essential air service type needs", he adds. Emphasising the importance of single-aisles, Hulst highlights Boeing's forecast that the size of this segment will more than double, from around 6,000 aircraft currently to 15,000 in 2040, led by continued growth in low-cost capacity. Currently only 20% of this market is latest-generation technology, he notes, meaning there is "massive" replacement value in the segment. The OEM is therefore "really bullish on the single-aisle market", Hulst concludes.


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