GLG News by Airline and Aerospace Industry Experts: GLG Leaders and Scholars

Gerard BuhrerOwnerSpectrum International Sourcing

The A-380 - Stay in Production or cancel?

May 7, 2010

Canceling the A 380 will invoke more costs not less. Even if the various Gov'ts would agree with layoffs, the severance pay and other benefits would outweigh the savings. Also most of the development costs are "sunk" they cannot be recovered at all. Future production costs must be reflected in the actual aircraft selling price. Also Airbus would suffer greatly in prestige should their "Queen" disappear, plus many customers would leave Airbus and go to Boeing.

Steve WolffPresidentWolff Consulting Services

Improving passenger screening without inconveniencing most travelers

February 17, 2010

Analysis of:Airport scanners stir fears over security lines | www.usatoday.com

Since 9-11 investment in checked bag screening has been ten times that for passenger checkpoint despite 6 checkpoint attacks & none via hold bags since PanAm 103.Effective passenger screening can be achieved with comparable investment levels.   However, the current approach of screening item-by-item will not work.  As terrorists’ primary aim has been to destroy aircraft, a new strategy that leverages work performed to date & that screens on a flight-basis is key to address today’s threat.

Addison SchonlandPartnerAirInsight

JAL gets reprieve

December 7, 2009

Analysis of:JAL To Get $7.8bn In State Guarantee | www.financierworldwide.com

JAL has been under a cloud for months.  This company has a proud history, in a nation with a fine appreciation for history. The struggle at JAL does not sit well with the Japanese people. It is not a proud moment to see a "national champion" go through this type of battle. But there is more to the struggle than a proud corporation being humbled.

Addison SchonlandPartnerAirInsight

London gets the competition it deserves

November 30, 2009

Analysis of:New Gatwick owner to eliminate queues | www.breakingtravelnews.com

For years Londoners have had to suffer under the clumsy hand of its sole airport operator, BAA. Fortunately this hegemony is over.

Mike RiegelOwnerAviation IQ

Recovery In Business Jet Demand - A Few Simple Truths

October 29, 2009

Analysis of:Business-Jet Demand Likely to Skid Before Regaining Lift | online.wsj.com

1) A brief historical review will show any casual observer that new jet deliveries lag wider economic recovery by some 12 months. 2) Demand heading into the current downturn was already dominated by international demand. 3) What most forecasts fail to highlight is who the winners will be as the business jet market recovers. Unlike prior cycles, some demand sources will be late to the party, and demand will not be evenly distributed across all OEMs and service providers.

Mike RiegelOwnerAviation IQ

Business Jet Recovery - The Road Ahead

October 28, 2009

Analysis of:Textron Barely Posts a Profit | online.wsj.com

The business jet cycle has certainly hit rock bottom, but will not show clear signs of recovery for at least six months. This recovery will be unique, in that there is significantly more competition, in virtually all major business aviation segments. As a result, understanding who will recover more quickly, and more sustainably, will require much more detailed analysis than before.

Addison SchonlandPartnerAirInsight

JAL is playing poker

October 24, 2009

Analysis of:JAL faces $8.8 billion excess debt if liquidated: source | www.reuters.com

The airline is in trouble, with what you would think is a weak hand. But it is inscrutable and playing a weak really well.

Addison SchonlandPartnerAirInsight

The 200 plane desire

October 14, 2009

Analysis of:Ryanair hopes to order 200 aircraft by year-end | www.reuters.com

Ryanair's loquacious leader is great for zingers.   His oft expressed desire for an effective doubling of the fleet has analysts pondering the decision process constantly.

Addison SchonlandPartnerAirInsight

Another side of the tanker story

October 8, 2009

Analysis of:Pentagon in the Tanker | spectator.org

This acquisition is going to be political before it is anything else. Congress cannot stay out of it and the vendors are lining up their supporters. No matter what the SecDef says. Which is why he was clever to hand back the decision to the Air Force. Who would want to be in the midst of this?

Addison SchonlandPartnerAirInsight

The struggle with in-flight Internet

October 7, 2009

Analysis of:Row44 opens the door for BYOI | www.flightglobal.com

This space has been the promised land of airline ancillary revenue from way back before 9/11, when Boeing brought us their Connexion service.Boeing's product worked as promised, but the economic model did not. Boeing canned the service just as, many would argue, it was starting to gain momentum. The loss of Connexion hampered the in-flight entertainment industry - but two new firms are offering in-flight WiFi now with mixed success.

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