Showing posts with label CFM. Show all posts
Showing posts with label CFM. Show all posts

flyDubai orders engines for its 737 MAX order

by BA Staff

flydubai today announced that it has signed an agreement with CFM International to purchase up to 200 LEAP-1B engines to power Boeing 737 MAX aircraft. The airline has also ordered 22 CFM56-7BE engines to power up to an additional 11 Boeing Next-Generation 737-800 aircraft. The order is not surprising since CFM International, a 50/50 joint company between Snecma (Safran) and GE Aviation, is the sole engine supplier for the Boeing 737 family of aircraft.

This total includes a 10-year Rate per Flight Hour (RPFH) agreement for the LEAP-1B engine, under the terms of which CFM will guarantee maintenance costs on a dollar per engine flight hour basis. This service is also called "Power by the Hour".

flydubai has been a CFM customer since it launched operations in mid-2009 and currently operates a fleet of 33 CFM56-7B-powered Boeing Next-Generation 737 aircraft. The airline has outstanding deliveries for CFM56-7B-powered aircraft from its 2008 order; these airplanes will be delivered by 2015.

CFM recently completed ground testing of the first LEAP engine, accumulation of 310 hours and more than 400 cycles with exceptional results. The first full LEAP-1B engine is currently being built in preparation for the launch of ground testing in mid-2014. The engine is scheduled for certification in 2016 and entry into service on the 737 MAX aircraft in 2017.

All of flydubai’s new CFM56-7B engines are the “E” variant, introduced in 2011. The CFM56-7BE-powered Next-Generation 737 enhanced airplane/engine combination is providing a 2% improvement in fuel consumption, which, in turn, equates to a 2% reduction in carbon emissions. Additionally, the enhanced -7BE engine will provide up to 4% lower maintenance costs, depending on the thrust rating.
Read more »

Etihad Airways orders CFM LEAP engine for its A321neo

By BA Staff

Etihad Airways, the national airline of the United Arab Emirates, announced that it has selected CFM International’s advanced LEAP-1A engine to power 26 Airbus A321neo scheduled to begin delivery in 2018. The order is valued at $2.8 billion U.S. at list price, including a long-term services agreement.

To support the new fleet, Etihad has signed a 15-year Rate per Flight Hour (RPFH) agreement, under the terms of which CFM will guarantee maintenance costs on a dollar per engine flight hour basis.

James Hogan, president and chief executive officer of Etihad Airways said:
“Etihad Airways prides itself on operating modern, state-of-the-art and highly efficient aircraft, with the Airbus A320 family at the heart of our narrow-body fleet. Through the introduction of the brand new Airbus A320neo family aircraft, we will benefit from even lower fuel consumption and environmental impact on short-haul and medium-haul flights. Much of these operational improvements will derive from the advanced LEAP-1A engine, which has been meeting all performance targets.”

Jean-Paul Ebanga, president and CEO of CFM International said:
"We are happy to welcome Etihad as a CFM customer. In just 10 years, this airline has built a reputation for excellence in every facet of its business, and we are honored to become part of this team"
Gaël Meheust, vice president of sales for CFM International said:
“We are obviously excited that Etihad chose to power its new A320neo fleet with the LEAP engine. We think this engine is going to be the best we’ve ever built and Etihad will realize the benefits from day one – lower fuel burn, lower noise and emissions, all with CFM’s legendary reliability and low cost of ownership."
Read more »

Lufthansa places CFM56-5B engine order for Airbus A320ceo

By BA Staff

Lufthansa A320 with Sharklets. Image courtesy Airbus S.A.S.
Deutsche Lufthansa has selected CFM International’s CFM56-5B engine to power 30 firm Airbus A320ceo (current engine option) aircraft. The agreement is valued at more than $610 million U.S. at list price. The aircraft order was announced in June of this year.

Nico Buchholz, executive vice president, Fleet Management for Lufthansa Group said:
"Our choice of the CFM56-5B engine is a true continuation of our long-running relationship with CFM. We know from experience that the CFM56-B offers a world-class combination of economic efficiency, reliability, and time on wing. We pleased to introduce more of these engines into our fleet."
Lufthansa, which is part of the Lufthansa Aviation Group, currently operates a fleet 350 CFM56 engines powering Airbus A319/A320, long-range, four-engine A340-300, and Boeing 737 Classic aircraft. Overall, Lufthansa Aviation Group, which includes Germanwings, Austrian, and Swiss, operates more than 560 CFM56 engines.

Jean-Paul Ebanga, president and CEO of CFM said:
“This is a fantastic vote of confidence for the entire CFM Team. Lufthansa is a long-time CFM customer and we are proud to continue this long relationship with them.”
Kevin McAllister vice president of sales for CFM parent company GE Aviation said:
“Lufthansa again chose the CFM56-5B after a very detailed technical evaluation. It is highly gratifying when an airline noted for its technical expertise recognizes the exceptional value that our product will bring to their fleet.”
Read more »

Pegasus Airlines seals $4.3 billion engine deal with CFM

By BA Staff


Pegasus Airlines has finalized its order for CFM International’s advanced LEAP-1A engine to power its 100 Airbus A320neo and A321neo aircraft on order.

The agreement is valued at approximately $4.3 billion U.S. at list price, including a long-term service agreement.

Under the terms of the 20-year Rate per Flight Hour (RPFH) maintenance agreement, CFM will guarantee maintenance costs on a dollar per engine flight hour basis.

The engine selection was announced in July 2013 and the airline is schedule to begin taking delivery of its new aircraft in 2016.

The Istanbul-based low cost airline has been a CFM customer since it began operations in 1990. The airline operates a fleet of 45 CFM-powered Boeing 737 aircraft on scheduled routes to 76 domestic and international destinations throughout Europe, Russia, Central Asia, Caucasus, the Middle East, and Africa.

Sertaç Haybat CEO of Pegasus Airlines said:
“We are pleased to have selected CFM to provide LEAP engines for our new Airbus A320neo and A321neo aircraft until 2022, in addition to the 20-year maintenance agreement. This will enable us to keep what is arguably the most significant cost for airlines — engine maintenance costs— in check by making these costs more predictable. With this order, we have now increased our total Airbus fleet investment to $16.3 billion U.S. — $12 billion for 100 new aircraft and $4.3 billion for the engines and long-term service agreement. Based on the delivery schedule for the fleet, our partnership with CFM will continue at least until the year 2042. Together, we are witnessing the signing ceremony for a collaboration that is set to last for another 30 years.”
Pierre Fabre, president & CEO of CFM parent company Snecma (Safran) said:
“This agreement marks an important milestone in our already 20-year relationship with Pegasus. Beyond the quality of the LEAP product comes our unwavering commitment to keep our promises and deliver the kind of performance, reliability, and operating economics Pegasus has come to rely on from CFM.”
The first LEAP-1A engine to test started for the first time on September 4, 2013, two days ahead of the schedule set in early 2010. The engine logged more than 300 hours and 400 cycles before coming off the test stand. The next major event is the icing tests that will take place in 2014. CFM is performing the test early, more than one year ahead of the engine certification timeline, to ensure that any potential issues are identified well in advance.
Read more »

Indian Navy's second P-8I maritime surveillance and anti-submarine aircraft arrives

by Devesh Agarwal

Manufacturer, Boeing has delivered the second P-8I long-range maritime reconnaissance and anti-submarine warfare aircraft to the Indian Navy. The first P-8I was delivered in May. The P-8I is the Indian Navy variant of the P-8A Poseidon that Boeing has developed for the U.S. Navy.

Indian Navy's second P-8I IN-320 departs for India
The two aircraft are currently stationed at INS Rajali, informally known as Arakkonam Naval Air Station, just west of Chennai. The second aircraft will begin flight trials in the coming months, while the first P-8I recently completed testing its weapons capabilities, including successfully firing a Boeing Harpoon missile at a target and dropping a torpedo.

The P-8I features open system architecture, advanced sensor and display technologies, and a worldwide base of suppliers, parts and support equipment. P-8I aircraft are built by a Boeing-led industry team that includes CFM International, Northrop Grumman, Raytheon, Spirit AeroSystems, BAE Systems and GE Aviation.
Read more »

Shannon Engine Support expands spare engine portfolio with LEAP

By BA Staff

Shannon Engine Support (SES) today announced that it is expanding its extensive spare engine portfolio with the addition of a mix of 29 LEAP-1A/-1B engines, scheduled to begin delivery in 2016. The order is valued at more than $375 million U.S. at list price.

SES is the largest lessor of CFM56 and LEAP spare engines in the world.  The company currently manages the CFM56 engine lease pool for the product support organization and will provide the same support for the LEAP engine family. Both CFM56 and LEAP engines are products of CFM International, a 50/50 joint company between Snecma (Safran) and GE.

Julie Dickerson, managing director of Shannon Engine Support said:
“We very excited about this purchase. Over our 25 year history, we have become the CFM56 spare engine lessor of choice for airlines and MRO providers alike.  Adding the LEAP engine to our portfolio is a big step in implementing our long-term strategy to offer a comprehensive spare engine offering across the entire CFM56 and 2LEAP engine operator base.  We have made some major investments in the last two years and we look forward to our customers reaping the benefits.”
Read more »

Boeing, WestJet firm up order for 65 737 MAX Airplanes

By BA Staff

Boeing and WestJet announced today that they have firmed up an order for 65 737 MAX airplanes, fulfilling the carrier's letter of intent to purchase the airplanes announced on Aug 29. The order, valued at $6.3 billion at list prices, consists of 40 737 MAX 8s and 25 737 MAX 7s. The airplanes are a key component of the Calgary-based airline's fleet renewal initiative.

WestJet President and CEO Gregg Saretsky said:
"We are pleased to announce the finalization of the MAX purchase agreement and look forward to being among the first North American airlines to fly the 737 MAX in 2017. The increased fuel efficiency and enhanced in-cabin amenities provided by the Boeing 737 MAX will contribute to both lower operating costs and a remarkable in-flight guest experience which is supportive of our low-cost business model and combined with our lease renewal options, maintains our fleet plan flexibility going forward."
The 737 MAX brings the most advanced engine technologies to the world's best-selling airplane, building on the strengths of today's Next-Generation 737. The 737 MAX incorporates the latest-technology CFM International LEAP-1B engines to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market. Airlines operating the 737 MAX will see a 13 percent fuel-use improvement over today's most fuel-efficient single-aisle airplanes. The order brings the total number of 737 MAX orders to date to 1,567 airplanes.

Brad McMullen, vice president of North America Sales, Boeing Commercial Airplanes said: 
"The 737 MAX is an excellent complement to the WestJet fleet and its low-cost business model. The airplane's efficiency, reliability and passenger amenities will enable WestJet to continue to provide its customers high-quality service at a low cost."
Read more »

CFM commences A320neo LEAP-1A engine certification with test run

by BA Staff

In a major milestone for the Airbus A320neo (new engine option) family jetliners, CFM International, kicked off its engine certification programme for its LEAP-1A turbofan engine which will power the new aircraft.
CFM LEAP-1A turbofan for A320neo on the GE test rig. Photo courtesy Airbus S.A.S.

The engine conglomerate conducted the first run of the engine at GE’s Peebles, Ohio outdoor test facility. The engine performed as expected and reached full take-off thrust, during these initial evaluations.

CFM's LEAP-1A along with Pratt & Whitney’s PurePower PW1100G-JM Geared Turbofan are the two new engine options being offered for the new variant of the A320 narrow body family. Boeing offers the 737 MAX as competition.
Read more »

CFM LEAP-1B engine for Boeing 737 MAX completes design freeze.

by Devesh Agarwal
Image courtesy Wikipedia
CFM International announced that it has completed design freeze, i.e. freezing the design and engine configuration, for the LEAP-1B, the exclusive engine for the Boeing 737 MAX. LEAP is an acronym for "Leading Edge Aviation Propulsion". The company expects the first full engine to test by mid 2014. CFM International, is a 50/50 joint company between Snecma (Safran) and General Electric.

Over the next six months, CFM will finalize and release detailed engine design drawings, leading in to parts manufacturing which will build-up towards end 2013. The current schedule calls for the LEAP-1B engine to undergo CFM flight testing in 2015 and engine certification in 2016, which is keeping in view the 2017 Entry Into Service (EIS) of the 737 MAX.

Unlike Airbus which offers its customers a choice of engines including CFM, Boeing has an exclusive relation with CFM, whose engines have been the sole powerplant for all 737 aircraft sold since 1981.

CFM has been conducting component and rig tests on LEAP hardware for more than five years; the program is now moving into an exhaustive engine ground test phase. The first full LEAP-1A egine, which is an option for the Airbus A320neo is currently being built and is on schedule to begin ground testing this fall. There are twelve LEAP-1B certification engine builds schedule over the next three years.

Overall, CFM will have a total of 28 certification engine builds and 30 flight test engines across the three LEAP engine models.

The LEAP engine will use advanced aerodynamic design techniques, lighter, more durable materials, and leading-edge environmental technologies to provide a 15% reduction in specific fuel consumption (SFC) compared to today’s CFM56 engines which power the current Boeing 737NG.
Read more »

Video: Changing a Boeing 737 CFM56 engine at Southwest Airlines

by Devesh Agarwal
A CGI rendition of the Southwest Boeing 737 MAX
Without a doubt, an aircraft's engines are one of the most complex parts on an aircraft. After the airframe, the engines are the most expensive item an airline buys, and normally an airline signs separate contracts for the airframe and the engines.

With thousands of rotating parts, and temperatures reaching close of one thousand degrees, engines require regular maintenance. Almost all engine manufacturers like General Electric, Rolls Royce, Pratt and Whitney, CFM, and IAE, offer a concept of 'fixed total cost of operations' wherein the airline pays the engine vendor a fixed cost per hour of operation of the engines and the vendor is responsible for maintaining the engines. This concept is better known as "power by the hour".

Some airlines like US low cost carrier, Southwest Airlines, have extremely large fleets, and find it more economical to have their own maintenance and engineering operations. For Southwest, these engineering centres are based at their major hubs of Dallas, Houston, Phoenix, Chicago, and Atlanta. The centres routinely swap out the CFM56 engines of their all Boeing 737 fleet. Since an aircraft earns money for an airline only when it is flying, airlines always keep spare engines, which are swapped out, allowing the aircraft to be put back in to service quickly. The engine then undergoes repairs and maintenance offline.

The CFM56 engines powering the Boeing 737NG weigh about 2,500kgs each, and even the well experienced technicians at Southwest take between four and seven hours to do a routine engine swap. In the video, observe the synchronism of teamwork that makes this complex task look routine, a task Southwest technicians perform over 154 times a year.

Read more »

Exclusive interview: Giorgio De Roni - CEO GoAir - Part 2: We first deliver results, we do not over-promise.

Continuing from part 1 of the interview with the the soft spoken CEO of GoAir, Giorgio De Roni, who has quietly turned around the Wadia family promoted airline from a rock bottom position, dismal market share, and reputation for frequent cancellations, to a top performing contender in the Indian airline industry, with some of the best performance parameters in the industry.

In the concluding part of this broad ranging two-on-one interview with Devesh Agarwal and Vinay Bhaskara, De Roni, shares his management mantras, techniques and methods utilised in the turn around of GoAir.

Q: How are things developing at GoAir and in the Indian airline industry as a whole over the past year?
Well the industry is going through a challenging period due to many issues in the market.

Certainly and foremost the cost of fuel and taxation on fuel. We have recorded an increase of 7%, which is a huge increase given that fuel represents more than 50% of our total costs.

Then we have a market that I’m fully confident and sure that in the medium to long term is growing. But unfortunately in the latest few months, we have recorded a drop in respect to last year, and that is a big concern in the short period.

We have some infrastructure bottlenecks and again this is penalizing airlines in India.

That said, I remain confident in the growth of the Indian aviation sector. We might require some revision of the regulatory environment which is a little bit old fashioned. If I’m not wrong the base of the legal framework is dated 1934, so even before the Chicago Convention.

I feel that some commitment from the government to revise and improve efficiency in the system is necessary. I feel confident that all stakeholders will be able to deliver us such an environment.

In my view, a country with 1.2 billion people should have a much stronger aviation sector. Definitely there is an opportunity to create a hub in India, and there is probably also a space for more than one hub. But we need some efficiency in all of the systems.
Q: Till a little more than a year ago, GoAir did not enjoy the best reputation in the industry in terms of dispatch reliability. In the last 1.5 years, that has turned around literally 100%. GoAir ranks, right at the top in terms of least cancellations and best on-time performance. Can you share with us what were the issues confronting GoAir and some of the steps you took to solve them when you joined the airline?
Well I think that quality to customer is one of the pillars of any airline, and we are committed to deliver value for money. Definitely I am aware that in the past, GoAir was suffering in terms of on-time performance. We are now averaging around 90%. And notwithstanding the high on-time performance, we also have high aircraft utilization, because in July we achieved 13 block hours per aircraft per day, which is remarkable for a narrow-body airline.

I think that the only thing that I am trying to reach within the organization is trying to deliver consistent strategy, and a consistent approach throughout the management team and down to the front line. We are investing hugely in terms of training and hugely in processes and procedure. We were IOSA approved [IATA Operational Safety Audit] at the end of 2010. Since it is a 2 year approval, we are now going through the renewal of that certificate. All these aspects are contributing to keep our quality and standard of performance high.
IOSA? We didn’t know that you had undergone IOSA. We only knew that Air India had undergone IOSA.
Well, one of our characteristics is not to overpromise, but first to deliver the result and then communicate. Sometimes my shareholder [Wadia family] blames me, saying that we [GoAir management] should be more proactive in communication.

Well my view is that we have to communicate only what we are able to deliver. And definitely IOSA is a good achievement.

But in the end, does a passenger choose GoAir for being IOSA certified? No I don’t think so.

I think that it is more important to deliver on-time performance, and good service, both on-board and on the ground. And that is why we are investing significantly in training.
Q: You mentioned that GoAir is achieving 13 hours aircraft block utilisation time, That is almost 20% or 30% more than IndiGo or SpiceJet. You appear to have probably the best aircraft utilization in the country?
Well last year we received an award by Airbus for being the best operator of the A320 in whole of Asia Pacific, Middle East and Africa in our fleet size. [Editor's note: A320 behemoths AirAsia and IndiGo are in the same geography]

And this is remarkable because of course the higher utilization continues to keep fixed costs more efficient , but also it is remarkable because it is accompanied by a very good on-time performance.
Q: How long are you looking at keeping the same level of aircraft utilization?
I hope that as soon as we get approval, we can start operating on international flights and increase the aircraft utilization by adding some flights at night. Of course on a daily basis we need to carry out maintenance checks on all the aircraft. And these keep the aircraft grounded for 3.5~4 hours every day, so the limit for the utilization is 20 hours.

We have a turnaround time of between 25 and 30 minutes depending on the size of the airport and efficiency of the airport in providing turnaround services. And that’s the limit I cannot go beyond.

Because our first departure is at 05:15 and our last arrival is at 01:00 the following day. Of course not all of the aircraft have such an intensive utilization, but we manage to have a pretty good utilization.
Q: So does this high utilization change the timeline on heavy maintenance checks for the A320s?
We do have C-checks. Another policy of the company is to keep the fleet as young as possible, because this brings efficiency in maintenance and efficiency in fuel consumption, and a good product to our customer. It means that C-checks. Yes we have undergone 8 C-checks for the fleet. These keep the aircraft grounded for around 3 days. We outsource the C-check maintenance. We also have engines updated but considering that we have spare engines, the high utilization is not as much of a concern.
Q: Many Indian carriers are moving to the concept of "power by the hour" with engine manufacturers. Is GoAir using this business method?

[Editor's note: In this business method, airlines agree to pay engine manufacturers a unit price per hour of usage of the engine. The manufacture is then responsible for the performance and maintenance of the engine.]
We do not do so currently, but we are exploring this method. If it saves us money and helps us improve our despatch reliability we will consider it most strongly.
Q: Can you share some of your operational numbers? What are your average number of flights per aircraft per day?
We operate roughly 100 nonstop flights, but the network is constructed to offer as many “via” [connecting] opportunities as possible, particularly via Delhi and via Mumbai. And we carried roughly 3.5 million passengers last year and we have a target of 5.5 [million]. Why? Not only due to the increase of aircraft, we grew capacity by 22% as well.
Q: So you will be targeting growth up to 5.5 million passengers this year?
Yes 5.5 million. Due to increasing capacity by 22% and a higher seat factor. We also slightly increased the productivity by 15 minutes – which is peanuts. But at the end of the day, we can deliver some positive results.
Q: How many rotations do you achieve on average per aircraft per day?
We achieve 7.6 legs per aircraft per day.
[Editor’s Note: Mr. De Roni clarified that he meant 7.6 one way flight segments per aircraft per day.]

Q: Can we ask you for CASK or RASK numbers? (Cost per Available Seat Kilometre, Revenue per Available Seat Kilometre)
Sorry No.
Q: You mentioned the enhanced connectivity that you are looking at through Delhi and Mumbai. Looking forward, how much do you want to grow connections? Will it play an increasing role in the business model or will the primary focus still be point to point connections (P2P)?
Well the main focus will continue to be on point to point, but definitely connectivity might increase without diluting the overall revenue. Furthermore, we also must consider that due to some infrastructure bottlenecks, it wouldn’t be easy to add additional slots in Mumbai or at peak times in Delhi. So we also have a strategy to increase our presence in other areas of the country. We are already relatively strong in the Northwest; in Jammu and Kashmir we are the market share leader in Srinagar. We have recently deployed second aircraft nonstop at Bangalore Airport and the January A320 delivery will be most probably deployed in the South of the country, bypassing both Delhi and Mumbai.
Q: What do you see happening in Mumbai with regards to an integrated terminal? Will it be something similar to Delhi where you have an LCC terminal and a separate integrated terminal.
First of all, I am not Indian and I am not particularly able to forecast Indian decisions. And even if I am able to forecast, since it is sometimes a frustrating experience, I prefer to keep to what is the final the result.

Because media coverage is unpredictable – one week they say that FDI will be approved by Friday, the next Saturday, it is next month, and the next month, it is in a few months time.

So I have the habit of let’s see what happens and planning consequently.
Q: The reason we ask is that if in Bombay they structure the integrated terminal similar to Delhi, will the cost structure be similar to Delhi?
Yes. And it will create inefficiencies in the cost structure if we have to share activity between two terminals. So I do hope that this kind of consideration will be analyzed before any sort of decision is made.
[Editor's note. Please see part 1 of this interview where Mr. De Roni explains how high fees are impacting Delhi airport with reduced traffic]

You recently asked the DGCA to grant you a waiver from the 5-year and 20-aircraft rules for international flying. How confident are you in receiving a waiver, and would this signal a shift in strategy towards more international flying?
No, the core business will remain domestic. I personally see a strong potential for more growth domestically, considering that only 60 million passengers travelled by air last year out of 1.2 billion people.

If there are opportunities to fly internationally, I feel relatively confident to be authorized to fly internationally.

We already have, as you know, the 5 years of experience required, but we are flying less than 20 aircraft. I do not see why foreign airlines are allowed to fly international flights to India with just 1, 2, or 3 aircraft and Indian carriers are not allowed.

In my view, allowing GoAir to fly international, will increase opportunities for employment, flows of currency and tourism, and will serve the economy of the country better, and at the end of the day, it will create a dynamic competitive environment to the benefit of the final customer.
[Editor’s Note: Just to give some examples of this disparity. Avia Traffic Company, an airline with 5 aircraft that is banned in the EU, is allowed to operate in to India. Bhutan's Druk Air with just 3 aircraft, and several sketchy Afghan airlines with very small fleets, operate non-stop international services into Delhi? Yet GoAir with its now sparkling reliability and safety record is not allowed to do so?]

Q: Looking at your network, Mumbai and Delhi seem to be roughly equal in size. Will you increase in Delhi?
We are slightly more present in Delhi, historically due to a lack of slots in Mumbai. But definitely also due to the fact that the cost in Delhi has increased greatly. Thus the expansion plan will mostly be outside Delhi.
Q: One thing we’ve noticed is that the bulk of the expense at Delhi Airport seems to have occurred on Terminal 3. Yet GoAir, SpiceJet, and IndiGo passengers, who do not use T3, are made to pay fees for T3. Your comments?
Unfortunately, this is the common approach to airport development. And with this kind of approach we have weaknesses in the efficiency of the system. We have to survive anyhow.
Thank you sir for the revealing details. It was a pleasure.

Read more »

Exclusive interview: Giorgio De Roni - CEO GoAir - Part 1: GoAir is profitable

Over the last 18 months, the soft spoken Giorgio De Roni has been quietly turning around the Wadia family promoted GoAir. From a rock bottom position, dismal market share, and reputation for frequent cancellations, De Roni has grown GoAir to surpass Kingfisher Airlines and JetLite in market share, and made GoAir a contender in the Indian airline industry, with the confidence to place large orders for 72 Airbus A320neo aircraft.

In a broad ranging two-on-one interview, Devesh Agarwal and Vinay Bhaskara spoken to De Roni. During the interview, De Roni dispelled the misconception that IndiGo is the only profitable airline in India.

GoAir is profitable, and this profit is achieved purely by operations, without the income from sale and lease back of aircraft.

In the first of this two part report, we cover the financial and strategic aspects of the interview.

Q: In March this year, at India Aviation, Mr. Dinesh Keskar was saying that India is having "profitless growth." Airlines were experiencing growth in passenger numbers but profits were very hard to come by. In less than 3-4 months, growth has stagnated, but profits are there. What are your thoughts on this odd situation?
My thoughts are that the industry should not operate below cost of production. Unfortunately the situation in the past in India was that most competitors were more interested in market share rather than profit. So I more than welcome the shift in strategy from most of my competitors. And this has brought fares in line with costs, and in fact we have been able to deliver a profit for the first quarter.
Q: Any numbers you could share?
No, not really, we are not a listed company and as a policy, we do not share our results. I can say, that I am relatively satisfied of the results. The net profit was in percentage terms higher than IATA average, and differently from some of my competitors, it was purely reached by operational factors; so by revenue from passengers, and not from non-operational sources [referring to sale and leaseback income and other non passenger sources of revenue]. I never comment on my competitors, I try to learn from them…. And it’s [Sale and lease-back income] not something that only happens in India.
Editor’s Note: The IATA figure is 1.4%. Since GoAir’s figures came purely from passenger revenues, they outperformed the passenger figures at both SpiceJet and Jet Airways.

Q: You were mentioning your fellow competitors. If you look over the past year at your fellow LCC competitors, both SpiceJet and IndiGo have pursued a rather aggressive growth in their own form. SpiceJet has been going into virgin territory withthe Q400 in to Tier II and Tier III markets, and IndiGo has been adding a new A320 literally every 3 weeks; and they have gained a lot by the implosion or the contraction, of Kingfisher. However, GoAir has pursued a very modest growth path. In fact we think you’ve added only one aircraft net in the last year.
In this financial year we added two net aircraft. One in April and one in August, with a third one coming in January 2013. Yes, we have a more cautious approach to growth. We are exclusively targeting profitability and not really market share. We do have an ambitious expansion plan, and in fact last year we ordered 72 A320neos.

So we are committed to better serve the country. I think that we had some advantage in being a small carrier last year. Our losses were limited. It’s an airline 100% owned by the [Wadia] family . They are committed to the airline business, but I feel personally that we can grow only if we deliver profit. So I would prefer to deliver a profit and remain small as opposed to growing rapidly and having challenges on the bottom-line.
Q: Could you describe what trends you’ve seen in the unit PRASK revenues (passenger revenue per available seat kilometer) in the past several months, because we do know that SpiceJet recorded PRASK growth of more than 17% and Jet Airways recorded PRASK growth of more than 15% on its domestic network. Are you seeing similar numbers?
Yes, I would say that we are pretty satisfied of the [PRASK] growth. What is inconvenient is that the cost structure also suffered a significant increase. Airport charges increased due to the devaluation of the rupee against the dollar, fuel prices increased heavily. Since September 1st, I think we reached the historical peak of the cost of fuel in India, which is not the case in other parts of the world. So I just wonder how we structure the cost of fuel in India versus other geographical areas.
Q: Is it possible for you to share in percentage terms roughly the breakup of costs at GoAir?
Fuel costs are about 50%, more precisely it might reach around 55% of our total cost now with fuel at Rs. 72 per litre? That is the figure I remember most clearly, because it is a huge amount. I would say that the cost of personnel is pretty efficient, also because the most expensive community, the pilots are pretty well utilized with more than 900 hours per year, the cap being 1,000 per year in India. Certainly we are suffering from the weakness of the Rupee as far as lease rentals and maintenance costs are concerned; due to the fact that maintenance is performed primarily with US dollars.
Q: And you did mention airport charges?
Of course airport charges are huge. You are aware that Delhi Airport increased charges by 334%. It was a number that did not meet their expectation of a 700% increase. But I’m challenging anyone to find any other airport in the world with such a huge increase year by year.

And this is a serious concern.

Of course when we say that fares have increased year over year, we have to consider that we have to shift to the customer the burden of increasing costs. Because we cannot absorb any increase in costs, we have to transfer them to the customer. What is the result? The result is that volume and demand have decreased, as the data in June and July have shown.

So I don’t think that the way airports keep growing their costs and increase their inefficiency is smart. At the end of the day, they suffer due to a decrease in demand.
Q: Can you give us a brief financial outlook for the next year, and then maybe 3 years out?
Well I can tell you that we forecast to achieve a profit at the end of the year. Of course the first quarter was positive. The second quarter was the weakest from a cyclical point of view of the financial year, so we are definitely suffering. That said, for the entirety of the year, I am relatively confident that we will deliver a profit.
Q: What do you assume will be your revenue growth over the next one and three years, relative to 2011-12?
Well what is important to us is to remain flexible. Although we have a purchase order for roughly 80 aircraft between today and 2020, we should bear in mind that if the market is not growing, if there are turbulences, we have to be more flexible and be cautious. Or if the market offers more opportunities, we have the flexibility to take more aircraft and our part of the growth.
Q: Do you currently have any purchase options for the A320neo?
We don’t have options at the moment. 72 A320neo and the 7 remaining A320 classic orders are all firm. Anyway you know that there is a sort of over-production of narrow-body aircraft. And it’s not really a problem to add aircraft if the market requires.
Q: How do you think valuations in the used market are looking as both the 737MAX and A320neo are coming closer to delivery? Are you finding any impact on the secondary markets?
The residual value will be impacted definitely. We still have to see whether those manufacturers will deliver as per the schedule, or if, as it is normally, there might be some delays. But the impact on the present values might be negative.
Q: GoAir has selected the PurePower (Pratt and Whitney GTF) engine for the A320neo. And we’ve heard that CFM has not quite been able to deliver on the performance parameters of the LEAP-X?
I would disagree. First of all, we are very satisfied with CFM engines for the current fleet. Then, as I told you a few minutes ago, I don’t want to go for over-promising. And I don’t like my providers to over-promise. And since I’m not commenting on my competitors, I don’t understand why my provider comments on their competitors. They are free to do whatever they like.
[Editor's note: Our source of information on the LEAP-X engine is not Pratt and Whitney]

Q: So can you talk about some of the factors that drove your decision to purchase the PurePower engine?
So we did an overall evaluation from a financial and technical point of view and in the end we found Pratt and Whitney’s proposal to be better. But this is not to say that we are not satisfied with the present [CFM] engines that we have on our fleet.
Q: You did mention aircraft program delays briefly. And since both Boeing and Airbus have had trouble with delays recently on the 787 and A350 programs respectively, how concerned are you about delays [on deliveries].
We are among the first carriers in the world to receive the A320neo in the first quarter of 2016. So far, I do not expect any delays. But we aware that in new aircraft, some delays might happen. Although, considering that 95% of the airframe is common to the current airframe, and considering that the same engine technology will be utilized on other aircraft in the next year, I feel relatively confident that Airbus will be able to deliver the aircraft as per schedule. You are aware that anyhow that we have current engine A320s on order, and so we are not really planning for an environment with delays. But it might happen.
Q: Will GoAir be adding Sharklets to its A320 classic fleet?
Yes, our next [A320] delivery in January will be with Sharklets. In fact, I think we will be among the first airlines to have sharklets; most probably the first in India, though it’s not really a race against IndiGo.
[Editor's note: Sharklets are new wingtip devices fitted on the A320 family aircraft]

Q: Has Airbus indicated the possibility of retroffiting sharklets?
Yes they have. There is no clear picture on the cost involved and the time-frame of grounding the aircraft. As soon as they come out with a final picture, we will evaluate. We are keen to reduce fuel burn, both for savings and for the pollution reason.
Q: What sort of numbers are you looking at in terms of fuel burn reduction from the Sharklets?
Based on our network, we are looking at something around 1.5% savings.
Q: And what about the A320neo?
On paper, they [Airbus] say that there will be a saving in the range of 15%. That would be a great achievement.
Q: Your order for 72 A320neos have a list price of almost $5.6 billion dollars, which will require around $280 million in upfront financing costs. How is GoAir planning to pay for this order?
[De Roni laughs] Your calculation is pretty precise.

We are well funded. If there are opportunities in the market we will consider them carefully, but there is no concern [about paying for the aircraft].
Q: So there is no feeling at GoAir that it is time to turn to the public market with an IPO?
Well inside the company last year, there was a project to develop an IPO. It was not pursued due to the overall position of the market. We are open, but that is a question that needs to be asked of the chief shareholder. I will say that overall we are comfortable with the funding for the next set of deliveries.
Stay tuned for Part 2 of this interesting interview. Comments and feedback are always welcome.
Read more »

Farnborough Orders on Day 2


Once again, this is courtesy of Aspire Aviation.

Airbus
Date
Customer
Quantity
Model
Remarks
9th July
Arkia Israel Airlines
4
A321neo
Agreement
10th July
Cathay Pacific
10
A350-1000
Agreement; convert 16 existing -900 into -1000
10th July
Drukair
1
A319
Firm















Boeing
Date
Customer
Quantity
Model
Remarks
9th July
Air Lease Corp (ALC)
60
737 MAX 8
Firm;
Reconfirmation rights for 25 more
9th July
Air Lease Corp (ALC)
15
737 MAX 9
10th July
GECAS
75
737 MAX 8
Agreement
10th July
GECAS
25
737-800
Agreement
10th July
ALAFCO
20
737 MAX 8
Agreement





Bombardier
Date
Customer
Quantity
Model
Remarks
10th July
Air Baltic
10
CS300
LOI; purchase rights for 10 more










Pratt & Whitney
Date
Customer
Quantity
Model
Remarks
9th July
IndiGo
300
PW1100G-JM
Firm
9th July
CIT
60
PW1100G-JM
Firm
9th July
Cebu Pacific
60
PW1100G-JM
Firm
9th July
Norwegian Air Shuttle (NAS)
100
PW1100G-JM
MoU





CFM
Date
Customer
Quantity
Model
Remarks
9th July
Air Lease Corp (ALC)
150
CFM Leap-1B

10th July
GECAS
150
CFM Leap-1B
Agreement
10th July
GECAS
50
CFM56-7BE
Agreement
10th July
ALAFCO
40
CFM Leap-1B
Agreement





Embraer
Date
Customer
Quantity
Model
Remarks
9th July
Hebei Airlines
5
E-190s
Booked in Q2 backlog
Read more »

Farnborough Orders on Day One

Courtesy of Aspire Aviation, the following table provides a breakdown of announced orders on Day 1 of the Farnborough Air Show.

Airbus
Date
Customer
Quantity
Model
Remarks
9th July
Arkia Israel Airlines
4
A321neo
Agreement










Boeing
Date
Customer
Quantity
Model
Remarks
9th July
Air Lease Corp (ALC)
60
737 MAX 8
Reconfirmation rights for 25 more
9th July
Air Lease Corp (ALC)
15
737 MAX 9





Pratt & Whitney
Date
Customer
Quantity
Model
Remarks
9th July
IndiGo
300
PW1100G-JM

9th July
CIT
60
PW1100G-JM

9th July
Cebu Pacific
60
PW1100G-JM
For 30 firm A321neos
9th July
Norwegian Air Shuttle (NAS)
100
PW1100G-JM
MoU





CFM
Date
Customer
Quantity
Model
Remarks
9th July
Air Lease Corp (ALC)
150
CFM Leap-1B











Embraer
Date
Customer
Quantity
Model
Remarks
9th July
Hebei Airlines
5
E-190s
Booked in Q2 backlog
Read more »

IndiGo firms up its contract with Pratt & Whitney to power its Airbus 320neos

The first day of the Farnborough Air Show has been relatively quiet on the orders front. But Pratt & Whitney has announced a slew of engine deals for Airbus' A320neo, and included in the deal was a firming of the contract between P&W and India's largest low cost carrier (LCC) IndiGo Airlines to provide PW1100G-JM (otherwise known as the Geared Turbofan or GTF) engines for IndiGo's A320neos. The selection of Pratt & Whitney engines to power the A320neo was first announced at last year's Paris Air Show, but a fully firm contract was not signed until today at Farnborough.

IndiGo had this to say about the deal.
“With oil prices on the rise, we are more satisfied than ever with our selection of the Pratt & Whitney PurePower engine,” said IndiGo President Aditya Ghosh. “As a result of the lower engine operating cost, we are confident that we can maintain our competitive low fares while simultaneously offering our customers the most environmentally friendly way to fly.”
Meanwhile Pratt & Whitney, which currently trails its rival CFM (a joint venture between GE Aviation of the US and Snecma of France) in market share in the engine battle for both the large narrowbody segment, and specifically on the Airbus A320neo, was happy to sign the deal
“This IndiGo order represents one of the largest engine orders in Pratt & Whitney’s long history," said Todd Kallman, president, Commercial Engines & Global Services for Pratt & Whitney. “We are excited by the opportunity to power IndiGo’s A320neo fleet and fly its customers with the dependable Pratt & Whitney PurePower engines.”
IndiGo has 150 A320neos on order and is one of the earliest customers for the aircraft, which will enter into service (EIS) in 2015 with Virgin America.
Read more »

Boeing faces major challenges on the 737 MAX

Earlier this week, Boeing released some of the confirmed design details for its re-engined 737 MAX narrow-body program. The new series of aircraft is expected to retain significant commonality with its predecessor, the Boeing 737NG program, however unlike Airbus' competing A320neo re-engine program, there are tangible changes being made between the 737NG and 737MAX due to the increased engine diameter and weight.

"The 737 MAX is on-track to deliver substantial fuel-savings to customers starting in 2017," said Beverly Wyse, vice president and general manager, 737 program. "We've made several design decisions that support the performance targets for the MAX and evolve the Next-Generation 737's design within the scope of the 737 MAX program."

The major design decisions and changes are as follow:
  • Aft body aerodynamic improvements - The tail cone will be extended and the section above the elevator will be thickened to improve steadiness of air flow, thereby eliminating the need for vortex generators on the tail. 
  • Engine installation - The new CFM LEAP-1B engines will be integrated with the wing similar to the aerodynamic lines on the Boeing 787 Dreamliner, and on a more pronounced manner than the 737NG's aerodynamic lines. A new pylon and strut, as well as an 8 inch nose gear extension will allow the 737 MAX to maintain similar ground clearance to the 737NG despite the integration of the larger LEAP engine, which is planned to have a fan diameter of 68.4 inches versus the roughly 61 inch diameter of the CFM56 family of engines that power the 737NG. 
  •  Flight control and system updates - The flight controls will include fly-by-wire spoilers (the Airbus A320 "classic" is primarily a fly-by-wire aircraft, while the 737NG eschews the use of such computers). "The MAX also will feature an electronic bleed air system, allowing for increased optimisation of the cabin pressurisation and ice protection systems." 
  • Additional changes include, "strengthening the main landing gear, wing and fuselage to accommodate the increase in loads due to the larger engines."
The rationale for the aerodynamic and flight control changes are that they are relatively simple, and reduce the 737MAX's drag, thereby decreasing the aircraft's block fuel burn.

Meanwhile the changes on engine installation and structural strength arise because the 737MAX needs a larger engine fan diameter to accrue the maximum reduction in specific fuel consumption (sfc) from the newest generation of engines.

Doubts remain on the 737 MAX, CFM LEAP Engine Despite this continuous progress on the part of the 737MAX, there remain several doubts about its position relative to its biggest competitor, the Airbus A320neo. From a pure numbers perspective, the A320neo has outsold the 737MAX by roughly 1.5 times (please note that we are counting Boeing's "commitments" for the 737MAX as sales because they will in all likelihood become sales) overall. But even more impressive has been its ability to win former 737NG customers. To date (by our count), Airbus has won over 3 customers for the A320neo that had previously only operated 737NGs, whereas in comparison, Boeing has made no such deals.

This interesting dichotomy has sparked speculation in the industry over the 737MAX's actual positioning relative to the A320neo. Conventional wisdom says that because the Airbus aircraft is able to take advantage of a much larger fan on the engine (up to 81 inches versus 68), its specific fuel consumption (sfc), and by extension (in this fuel environment) operating costs, will be tangibly lower than those of the 737MAX. In real terms however, there is a trade off between more effecient sfc and the additional weight of a larger and heavier engine, with the extra weight from the latter offsetting the gains of increasing fan diameter ( simple physics; a larger fan yields more propulsive efficiency). Thus there is a certain "sweet spot" in engine size, where the net effect on block fuel burn (ultimately the most important measure) turns negative; i.e a point above which, increasing fan diameter adds so much weight that the sfc improvement is more than offset. Where this sweet spot lies only time and years of service for these engines can tell, but at the moment, it appears that this puts Boeing at a competitive disadvantage.

Which is why my colleague over at Aspire Aviation pointed out that:
While Boeing and CFM have spent months refining the configuration of the Leap-1B engine since the 737 MAX’s launch in August 2011, given Pratt & Whitney’s experience and work done on the similarly-sized PW1524G engine with a fan size of 73 inches powering the Bombardier CSeries, the world’s third-largest engine-maker could easily design a downscaled PW1524G with a 71 inches (180.3 cm) fan sizes indicated by Aspire Aviation‘s sources at Chicago-based airframer that fit the 737 MAX with minimal investment and programme risk. In addition, the downscaled PurePower engine could easily incorporate any lessons learned and improvements from the post-EIS (entry into service) flight hours amassed on the PW1524G under Bombardier CSeries’ wings that makes the downscaled PurePower engine on the 737 MAX more fuel efficient.

From a performance standpoint, a 71 inches downscaled PW1524G engine could feasibly provide a 15% reduction in engine specific fuel consumption (SFC), which lost around 1% SFC saving due to a smaller engine fan from 73 inches to 71 inches, not taking into account the reduced weight and drag that are compensated on the aircraft’s block fuel burn separately. In comparison, the CFM Leap-1B will contribute a 12% lower engine SFC towards the 737 MAX’s 11% lower fuel burn per seat than the 737-800.
The potential for a geared turbofan (GTF) on the 737MAX is very intriguing, especially when one considers that the GTF is  projected to offer significant maintenance cost reductions versus the LEAP.

It has become clear in recent weeks, that the pure performance of the LEAP is not up to snuff vis a vis the PW-1000G even on the Airbus A320neo, where Pratt & Whitney's product holds a commanding 60-40 market share. Some reports place that figure as high as 4% advantage to the GTF, but we feel that that is a little bit on the high side. Remember, existing operators of CFM powered A320s are likely to choose the LEAP-X on the A320neo for commonality purposes, but even the combination of commonality and favorable pricing cannot usually outweigh a 4% long term deficit in performance. But even if the performance is 2-2.5% worse (our best estimate for a "worst case scenario"), this is still a serious problem for Boeing, as the LEAP-1B used on its MAX will be less optimized than the LEAP-X for the A320neo.

On the other hand, part of the allure of a 737MAX would be commonality with the current generation of CFM engines, but if Boeing keeps offering the CFM option, then allowing P&W in on the MAX race is a relatively low-risk proposition, especially if it would equalize the fuel burn improvement on the MAX models with that of the Airbus' A320neo family.

Regardless, things are not all bad for Boeing's cash cow 737 program. Even as 737MAX development costs are likely to double those of the A320neo, Boeing will still maintain its heavy edge in profit margin. Plus, even in its current form, the 737MAX could win many more orders thanks to greater availability and heavy optimization of the base 737 MAX 8. For example, the consensus of our sources now indicate that the United Airlines order for 200+ narrowbody aircraft that will be announced next month is leaning towards Boeing over Airbus and the competing Bomabardier C-Series. Major players like Turkish Airlines, and many of the Chinese carriers have yet to place orders for the next generation of aircraft as well.

And at this point, there is no turning back for Boeing; the MAX will likely be the backbone of their narrowbody offering at least into the 2020s.

“Our intention is that we will build the MAX until the market doesn’t want to buy any more and we don’t know when that’s going to be. I wouldn’t predict 2025 or 2035, at some point, either something better will come along or the marketplace will decide they won’t continue to take it. We’ll make it until it runs out of gas and that could be a long, long time,” Boeing Commercial Airplanes (BCA) senior vice president (SVP) of marketing Mike Bair said.





Read more »

Siuchan Airlines orders 20 COMAC C919

On October 21st, 2011 , Commercial Aircraft Corporation of China (COMAC for short) announced an order from Siuchan Airlines for 20 of its narrowbody C919 aircraft. Earlier in the week, COMAC had won an order for 45 C919s from Industrial & Commercial Bank of China Ltd.’s leasing arm.

The COMAC C919 is a large narrowbody aircraft designed to compete with the Boeing 737MAX and Airbus A320neo. The airplane is projected to make its first flight in 2014, and its first delivery is planned for 2016. While the design and production of the airliners are based in China, foreign companies play a significant role in its production as well. CFM International, a GE-Saras joint venture is producing the engines for the aircraft, and other foreign companies such as Honeywell play a role in constructing the aircraft's flight systems.

COMAC C919
The order from Siuchan Airlines brings the total firm orders for the C919 to 105. China Eastern, China Southern, Hainan Airlines, and Air China are the other airlnes who have ordered the type. Additionally, GE's leasing wing has an order for 10 C919s, with 55 more from Chinese leasing firms. Despite this modest success, the C919 will likely not be taken seriously until it garners an order from a major non-Chinese airline. Ryanair's Michael O'Leary indicated an interest in the C919 earlier this year, but aviation analysts have speculated that his statements were designed to put pressure on Boaing and Airbus for better pricing terms.
Read more »

Updated: Boeing Launches the 737 MAX -7, -8, and -9 New Engine Family of Aircraft

Earlier this morning, the board of Boeing officially approved the launch of a new engine variant of the Boeing 737.

Boeing says that the 737 MAX 7/8/9 (coinciding with the 737-700/800/900 in terms of size), was launched "based on order commitments for 496 airplanes from five airlines and a strong business case." Of those 496 order commitments, only 100 have been announced (for American Airlines). Leeham News expects that Southwest Airlines may be responsible for another order, and Copa Airlines indicated interest in the re-engined 737 in its most recent quarterly earnings call.



According to Boeing, the re-engined 737(s) will have "a 7 percent [cost] advantage over the competition." They also state that the, "airplane's fuel burn is expected to be 16 percent lower than our competitor's current offering [A320 classic] and 4 percent lower than their future offering [A320neo]."



However, as Leeham News pointed out, Boeing's seat-mile cost figures assumed a 12 seat advantage in size for the 737 MAX 8 over the A320neo, a package of performance improvements for the 737 MAX 8 (none for the neo), and a 13% fuel burn advantage for the neo over the A320 classic, versus the 15% gain Airbus is claiming. So these figures must be taken with a grain of salt.

Regardless of those questions however, Boeing's 737-800W was equal to, or better than (in terms of seat mile costs), the A320 classic. And as such, the 737 MAX 8 should at the very least match the A320neo economically.

The aircraft will be powered by the CFM Leap-1B, but Boeing refrained from releasing fan-size and/or other technical details in its press release. The aircraft is targeted for entry into service in 2017, more than a year after Airbus' neo is scheduled for EIS (target date; October 2015).

In terms of program leadership:

"Boeing has named Bob Feldmann vice president and general manager of the new engine 737 family. With 35 years of aerospace experience, Feldmann most recently led the Surveillance and Engagement division within Boeing Military Aircraft, a unit of Boeing Defense, Space & Security that includes several commercial derivative programs based on the 737 platform. He has been instrumental in leading the successful development of complex programs such as the EA-18G Growler and the P-8A Poseidon.

Michael Teal has been named vice president, chief project engineer and deputy program manager. Teal's most recent role was vice president and chief project engineer on the 747-8 program, where he was instrumental in managing the airplane's configuration and integration, performance, safety, test and certification."



As of Sunday August 21st, 2011; Airbus had 1245 orders and commitments for A320neo. If Boeing's 496 commitment figure stands, then it would mean that the re-engined 737 has already garnered close to 40% of the orders that the neo has; and it's only truly been in the cards for 2-3 months.

Still, there are definitely far more delivery slots open for the new 737 option than the neos. With Airbus all but out of delivery slots from 2017-2019; Boeing now has a chance to garner a lot of orders from carriers who have not yet made a decision (Air France-KLM, IAG, ANA, United, and many more).

It will be interesting to see if the re-engined 737 MAX 8 can make any more inroads amongst Indian carriers. Jet and SpiceJet are both potential customers with their current fleet of 737NGs, but could we perhaps see an order from the erstwhile national carrier?

Edit 1: Air Insight has done an analysis of 737MAX vs. A320neo; looks like 737 MAX 8 will be competitive with the 320neo; no word on MAX 7/9 vs. 319/321neos just yet.

-Vinay Bhaskara

Twitter: @TheABVinay

Contact me at vinay@bangaloreaviation.com

Please feel free to comment on the post below

Read more »

Unusual incident grounds Air India Airbus A319 for three weeks

An unusual incident has resulted in the grounding of a new, front line, Airbus A319 aircraft of national carrier Air India, for almost three weeks in Bangalore which is conservatively expected to cost the airline more than Rs. 5 Crore ($1.2 million).

A damaged VT-SCL Air India Airbus A319-112 sits on the ramp at Bengaluru International Airport. The CFM engine is wrapped up.A damaged VT-SCL sits on the ramp at Bengaluru International Airport.

On November 27, 2010 at 00:05 IST ( 18:35-1 Z), VT-SCL which was delivered with much fan-fare at India Aviation 2008, was performing flight AI-444 from Bangalore to Singapore. On take-off the right engine cowling came loose. Due to force of wind the cowling was ripped off the engine. Sources indicate there was no alarm, initially, on the flight deck. The missing cowling was noticed by a lay passenger who, with great trepidation, alerted the cabin crew that the right engine was "missing". Airport safety officers found bits of the cowling strewn on the runway. Soon after, the flight crew declared an emergency and returned to the Bengaluru International airport, landed safely, and the passengers disembarked normally.

In the course of this incident, the entire pylon and engine mounting assembly has been mis-aligned. As good as Air India engineering is, this is an exceptional airframe and engine structural issue, and requires the efforts and skills of both airframe manufacturer Airbus S.A.S. and engine manufacturer CFM International to first align the airframe and engine mounts, before the Air India engineering team can take over and effect the actual repairs to the engine itself.

An Air India spokesperson and other sources have confirmed that a team which includes structural specialists from Airbus is expected to arrive sometime next week to commence the repairs.

This three week delay was apparently due to the unusual nature of the incident. The airline, which has a good reputation for its engineering department, had a tough time convincing the rather incredulous officials in the air-worthiness department of India's Directorate General of Civil Aviation, who initially just would not accept the reasons and the results of the incident, to grant the needed permissions so that visas could be obtained for the repair team.

Surely this is an incident the financial burdened carrier can ill afford.
Read more »