Focusing On The Engine Manufacturers

Although the “order battle” between Airbus and Boeing attracts much of the focus at the Paris Air Show, there is equally intense competitive rivalry between the major engine manufacturers.

Pratt & Whitney has announced orders for more than 1,000 engines, including options, in Paris (counting IAE V2500s). The deals include International Lease Finance Corporation (ILFC) selecting PurePower PW1100G-JM engines to power 30 A320neos; agreements with Norwegian Air Shuttle and Spirit Airlines and a Memorandum of Understanding with Air Lease Corporation on the same engine (powering 50, 45 and 30 aircraft respectively); and a further letter of intent with ILFC for up to 200 PurePower PW1900G engines to power 100 Embraer E-Jets E2 aircraft.

Pratt & Whitney president David Hess labelled 2013 a “tremendous year” for the PurePower engine; the company says it now has more than 4,500 orders and commitments, including options, from more than 40 customers around the world.

CFM International – the 50/50 joint venture between GE Aviation and Snecma – has also had a successful show, with a $3.7bn list price valued order for 350 CFM56-7B engines as a result of Ryanair’s purchase of 175 Boeing 737-800 NGs; a $760m order for LEAP-1B engines powering CIT Group’s selection of 30 737 MAX 8s; and an AirAsia order for LEAP-1A engines on 64 A320neos and CFM56-5B engines to power 36 A320ceos.

CFM says it has now received orders for nearly 3,000 LEAP-1B engines at a value of more than $35bn at list prices. “Our focus now is on execution. We have to deliver what we have promised. But everything we are seeing from this engine so far validates that we will meet our commitments to Boeing and our airline customers,” commented Jean-Paul Ebanga, president and CEO of CFM international.

GE Aviation itself benefitted from Korean Air’s commitment to purchase five GEnx-2B-powered 747-8 Intercontinentals and six GE90-115B-powered 777-300ERs, as well as from United Airlines and GECAS orders for 787-10 Dreamliners powered by GEnx-1B engines (35 and 10 respectively).

Rolls-Royce has won its fair share of orders too. These include a Memorandum of Understanding with the Air France-KLM Group for Trent XWB engines to power 25 A350s – an agreement worth $1.1bn at list prices; a $200m list price order to deliver Trent 700 engines to power three A330s; a Transaero contract to provide Trent 1000 engines for four 787 Dreamliners; an $800m order from SriLankan Airlines for Trent XWB engines to power four A350-900s and Trent 700 engines to power six A330-300s; and an order from Air Lease Corporation for Trent 1000 engines to power four 787-9 Dreamliner aircraft.

A number of maintenance service agreements were included within these orders – another significant revenue stream and a further cause for celebration for the engine manufacturers this week.

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