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                                                                                Companies are investing
                                                                                heavily in technological
                                                                                innovation to come up
                                                                                with new products to fend
                                                                                competition.
        to fend competition. The aerospace sector,   engines are vying for contracts which   narrow-body, single-aisle planes, Pratt &
        thereby, is witnessing healthy growth and   are  reportedly  worth  a  whopping  US$20   Whitney has a relatively humble presence
        industry consolidation as the individual   billion.                     in commercial aircraft. Pratt & Whitney’s
        companies  restructure  and  streamline   To meet the specific  needs of the   forte rather lies in the military contracting
        their operations to achieve cost efficiency.  regional  aviation  market,  Snecma  field.
            GE Aviation in 2013 had said about 13   (Safran) offers the SaM146,  developed    Of the 2,610 Airbus A320neo orders as
        % of production in 2014 will be for new   in partnership with Russian engine   of Jan. 2014, CFM International and Pratt
        products, compared with 9 % in 2013 and   manufacturer NPO Saturn through the   & Whitney have secured about 32% each.
        2 % in 2010. The trend shows the growing   joint venture, PowerJet.     Consequently, the contest seems  pretty
        importance of the latest plane designs to   And that is not all. United Technologies   open with either of the player possessing
        suppliers.                          and GE Aviation are involved in the   the capability to outwit the other.
            Thus big players like Boeing Company   design,  manufacture  and  sale  of   CFM International has booking orders
        and Airbus Group are forced to look at   aerospace components like landing   for 614 CFM56 and LEAP engines to date.
        options to replace their aging fleets with   gears and actuation systems and provide   Overall, CFM has received orders for 352
        new  fuel-efficient  composite  material-  maintenance, repair and overhaul (MRO)   CFM56 engines (including  spares) from
        laden aircraft. Both these players   services in the global airline market. These   several  customers,  including  FlyDubai,
        have achieved significant headway in   manufacturers contest hard for initial   Air Algerie, and GECAS, who ordered
        aerodynamics over the years.        sales of units, since a large installed base   20 CFM56-7B-powered Boeing Next-
            Both Pratt & Whitney, a unit of United   of engines ensure continued cash streams   Generation 737s, and VietJetAir, who have
        Technologies, and CFM International,   down the road via parts replacement and   selected the CFM56-5B to power 21 Airbus
        General Electric’s joint venture with   routine maintenance.            A320ceo aircraft.
        Snecma    (SAFRAN)  of  France, have   About 70% of the world’s jetliner     Singapore-based Lion Air recently
        developed new-generation engines that   engines are manufactured either by   finalized an order for 60 A320ceo aircraft
        reduce at least 15% fuel consumption   General Electric or by CFM International.  powered by CFM56-5B engines. The
        compared with their older counterparts.     While CFM International has been   company has also logged orders for 262
        These premier manufacturers of jet   a  prominent  provider  of  engines  on   LEAP engines: Flydubai: finalized its
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