Showing posts with label International Aero Engines. Show all posts
Showing posts with label International Aero Engines. Show all posts

NTSB investigating engine failure aboard Spirit Airlines Flight 165

By BA Staff

The National Transportation Safety Board is investigating Tuesday’s engine failure on a Spirit Airlines Airbus A319, which was flying from Dallas to Atlanta.

The NTSB has an investigator on the scene at Dallas-Fort Worth International Airport inspecting and documenting the engine, an International Aero Engines (IAE) V2500, which has now been removed from the airplane.

As a result of the initial inspection, it was determined that the engine failure was contained, meaning it did not penetrate the engine casing.

The engine will be shipped to a separate facility for a detailed examination and disassembly. IAE, the Federal Aviation Administration, and Spirit Airlines are parties to the investigation.

The NTSB has also secured the flight data recorder and cockpit voice recorder from Spirit Flight 165. The recorders are being brought back to Washington, DC for readout and analysis.
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Kingfisher lawsuit against IAE shows Vijay Mallya's desperation

by Vinay Bhaskara and Devesh Agarwal

Earlier this month, defunct Indian carrier Kingfisher Airlines, which has been grounded since 20th October, 2012 when the Indian regulator, the Directorate General of Civil Aviation (DGCA) suspended its flying license, filed its annual report for fiscal year 2012-2013.

Instead of focusing on finding a way to pay off the nearly Rs. 7,000 Crore debt the airline owes to a consortium of lenders led by the State Bank of India, Kingfisher used the annual report as a mouthpiece to announce a lawsuit filed in the City Civil Court at Bangalore against engine manufacturer International Aero Engines (IAE) for $235 million (damages of $210.4 million plus $24.6 million in punitive damages), claiming that the IAE V-2500 A5 engines used to power Kingfisher’s once 32-strong fleet of Airbus A320 family aircraft were “inherently defective, both in design and manufacture.” The Kingfisher annual report says.
United Breweries (Holdings) Limited has filed a suit in the City Civil Court at Bangalore against International Aero Engines AG, its shareholders / joint venture partners and your Company being O.S. No. 6406 of 2012, alleging that the IAE V-2500 A5 engines supplied to your Company were inherently defective, both in design and manufacture, and has claimed damages of USD 210,400,000 plus Rs. 1,621,000,000 (aggregating to approximately $24.557 million as per the current exchange rate of approx Rs. 66  per US Dollar) and has reserved liability to claim further damages. No relief is sought against your Company in the said suit.
This lawsuit smacks of desperation on the part of Kingfisher and its management, as the carrier continues to flounder.

Considering that it did not operate for most of the year, if Kingfisher still managed to find enough cash to pay CEO Sanjay Aggarwal US $591,000 in an annual salary, clearly demonstrates a carefully managed business strategy will allow the airline to slowly pay off debt without resorting to doomed strategies such as this lawsuit.

Kingfisher restart would be a strategic mistake

Kingfisher also continues to pursue the flawed idea that the carrier should “restart” operations with up to 20 aircraft, or that the carrier will make back the money by selling itself to an investor. This is a mistake. Re-launching operations in today’s Indian airline industry would be a tragic mistake. For starters, the Indian macroeconomic picture is very poor; the Indian Rupee has continued to decline and growth projections for the fiscal year have slipped beneath 5%. This has driven demand for Kingfisher’s premium style product lower than when Kingfisher shut down, and that too up against a somewhat re-vitalized Air India, a re-capitalized Jet Airways, a market leading IndiGo, and a soon to arrive behemoth AirAsia India. 

Moreover, India’s other airlines have committed to firm orders of at least 93 current generation narrow body aircraft, as well as 272 next-generation re-engined products (which doesn’t even include an expected re-engined order from low cost carrier (LCC) SpiceJet. This doesn’t even include the fleet of well-capitalized startup AirAsia India, who we project to grow to a fleet of between 10 and 12 Airbus A320s, and regional startup Air Costa, who is supposedly on the verge of launching operations within the next two months. And all of these orders and startups have locked Indian carriers into domestic capacity growth, even with the persistent demand weakness. LCCs have been flooding major Metro markets with capacity (see IndiGo driving out Jet Airways with a massive capacity dump in the Bhubaneswar market as just one prime example).

Even at the peak of the Indian market, Kingfisher as an airline was not profitable and the one part of their network which was profitable, the regional ATR network in the South, has been co-opted by LCC SpiceJet using a fleet of Bombardier Dash 8 Q400 turboprops. SpiceJet already has 15 Q400s in its fleet, and is working to secure financing to grow the fleet by another 15 frames. For example, one of Kingfisher’s most profitable routes pre-shutdown was the trunk route between Bangalore and the industrial Karnataka city of Hubli, but Hubli is now a SpiceJet monopoly with service to five destinations using the Q400s. And Air Costa is due to start operations, muddying up the waters with even more capacity.

One cannot blame Kingfisher’s investors for the idea that if only Kingfisher were to be re-started and/or sold, they will make back their money over time. This sort of playbook is present all over the global airline industry, most notably with US LCC Virgin America whose investors have continued to swallow persistent losses over the past six years in hopes of making their money back via an initial public offering. This would be a mistake in the Indian market, where the existing carriers are already struggling. SpiceJet, Jet Airways, and Air India have all hiked their fares by more than 25% in recent days to offset the rise in the Rupee, with GoAir and IndiGo expected to follow suit soon. Kingfisher re-launching into this environment would just be a recipe for racking up thousands of crores more, in further accumulated losses.

It is better to leave Kingfisher's aircraft rotting on tarmacs across the country where they could at least serve as a reminder to Dr. Mallya, how he, and his incompetent mis-managers, drove a great airline concept in to tatters.
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Kingfisher Airlines grounds aircraft on engine and financial woes

Kingfisher Airlines suffered a bird-strike incident last Friday. A simply dry report of the incident would read as,
A Kingfisher Airlines Airbus A321-232 registration VT-KFP performing flight IT-331 from Mumbai to New Delhi, India on October 8, 2010, suffered a bird hit. During the take-off run, a loud thud was heard, since the aircraft was already beyond V1 (decision speed), in accordance with established aviation practices, the pilot in command continued the take-off, and after being airborne, requested Mumbai ATC for a return back to the airport. The plane landed safely on one engine, and passengers disembarked normally. A subsequent inspection confirmed the ingestion of a large bird into the engine and also revealed extensive damage to the engine. Passengers were transferred on to other flights of the carrier.
In normal circumstances a bird stike is just one of the routine hazards of daily airline business, but in the case of Kingfisher, this incident has just added to the on-going engine woes at the airline, leading to many of its aircraft being grounded for extended periods of time.

VT-KFT, VT-DKR, and an unknown Airbus A320 family aircraft of Kingfisher

Across the nation one can see Kingfisher aircraft covered with silver coloured high density foil, which is normally used to seal up an aircraft meant for long term storage, missing their engines. When queried, an airline source said
We have just removed the engines which are due back from overhaul in 10 days. We have wrapped areas of the aircraft with plastic film for protection purposes.
An aircraft only earns an airline money when it is flying. It is normal practice for airlines to have VT-KFT Kingfisher Airlines Airbus A320 grounded due to IEA V2500 engine maintenanceas many as 50% engines as spares in their inventory, i.e. one additional engine for every two engined airframe. This minimises aircraft down time by enabling rapid swapping engines (typically at night) as they come due for maintenance. Keeping a serving aircraft grounded for ten days is unheard of.

It is no secret that the airline is suffering the ill-effects of its financial problems. The line of creditors is long, with some of the less critical ones waiting months on end for their payments. Even critical vendors, like lessors of capital equipment like airframes and engines, airports, and fuel companies, have been the victim of highly delayed payments from the carrier. In January 2009, the airline was court ordered to return aircraft to GE Commercial Aviation Services (GECAS) due to payment issues. At the same time the airline was forced to defer delivery on as many as 32 of 48 ordered Airbus aircraft, and divert many new aircraft to other airlines like Turkish THY.

The latest financial spat at the airline appears to involve engine vendors International Aero Engines (IAE) and Pratt and Whitney whose engines power the carrier's Airbus A320 family fleet and ATR-72-500 fleet respectively. These spats have forced the grounding of as many as 19 aircraft, at airports across India, as the carrier is increasingly forced by creditors to make payments up front.

Kingfisher's Airbus A320 family fleet is powered by the IEA V2500 engines, the same engines that power the A320 fleet at low fare competitor IndiGo. The V2500 has had some problems with the high pressure compressor drum assemblies. While, IAE has rectified the problems at IndiGo since the carrier was the launch customer of the V2500 SelectOne post-delivery maintenance program, Kingfisher has suffered the grounding of at least nine aircraft due rectification delays of the same problem.

Most likely, IEA has taken a hard stance, possibly demanding upfront payments or clearance of past dues, prior to rendering service, which would add to the existing cash flow crunch at the airline. It is logical to assume that Kingfisher may not have adequate cash to service and keep engines spare and this forcing the carrier to ground aircraft for ten days or more while the engines are being serviced.

In return, Kingfisher Airlines is threatening to make claims of Rs. 1,000 Crore (approx. $220 million) on the engine manufacturer, for "extra-ordinary costs of repair and revenue loss".

For now, all one can say is stay tuned, the drama continues, but aircraft lovers just cringe at the sight of these airframes languishing across India.
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