Engine lessor Azorra Aviation and GE Aviation have concluded a Set Maintenance Offer agreement for Azorra’s CF34-10Es to reduce the engines’ cost of ownership. SMOs are available to all CF34-10E customers, regardless of their MRO
Due to recent durability improvements in the CF34-10E, David Kircher, GE’s general manager for regional engine services, says the SMO will reduce the cost of a Life Limited Part shop visit by 30%.
Azorra CEO John Evans says the SMO will also bring cost predictability to CF34-10E operators and help Azorra increase its fleet of CF34-10E-powered E190s. Embraer Chief Commercial Officer Arjan Miejer appreciates GE’s focus on making E1s more efficient.
Customers can agree to SMOs for parts only or incorporate them into overhaul agreements with GE. SMOs cover high pressure compressor blades, combustor dome, inner and outer combustor liners, high pressure turbine blades and nozzles, Stage 1 low pressure turbine nozzles and new stacks of rotating LLPs. The 1,650 CF34-10Es will start requiring their LLP shop visits beginning later in 2019.
The new SMO is unique to the CF34-10E, but built on previous innovations. In the mid-2000s, GE introduced a high-pressure turbine hot section kit for CF34-3s, also called SMO. And GE has also introduced a CF34-8 shop visit optimization agreement, or SVO, that combines LLP and hot-section hardware.
Kircher calls Azorra “a strategic leasing company” with which GE Aviation wanted to partner in launching and validating SMO. “Azorra has been instrumental with us on creating an overall CF34-10E maintenance cost solution. . . Discussions are underway with all CF34-10E operators.”
SMOs certainly look attractive. An SMO fixes only the cost of the parts kit, not the overhaul. But GE’s estimate of a 30% reduction in total shop visit cost means the cut in part costs is even sharper. And all LLPs included in an SMO kit will be new parts, along with the high-pressure turbine Stage 1 blade. Other parts will be new or used depending on availability.
Kircher says GE can make this very favorable offer because improvements during last several years have made CF34-10Es the most reliable engines in GE’s fleet.