Home' Asian Aviation : AAV Sept 2014 Contents 24 AsianAviation | SEPTEMBER 2014
such as pre-positioned line replaceable units, on-site
replacement inventory and proactive life limited parts
planning, where Pratt & Whitney manages all of the
paperwork and trace requirements.
"Upgraded engine leasing options, on-site engine
fleet and health management training, and data
analytics programs will enable customers to reduce
maintenance cost and appropriately prepare for
scheduled maintenances," says the manufacturer.
The OEM also launched its PW1000G MRO
network at the show, for the engine that powers
Rolls-Royce's, meanwhile offers its long-
established TotalCare, which it describes as "an
integrated core set of services covering key aspects
of engine management and maintenance, which can
be combined with a range of optional services to tailor
TotalCare to an individual customer's requirements."
All this has seen a shift towards greater OEM
involvement engine MRO, which looks set to continue.
"The market offers significant competition for
power-by-the-hour deals which are harder to come
by nowadays, as OEMs are increasingly securing
such deals at the point of sale. Engine OEMs
continue to have control over their respective
product technology, IP and materials. With this shift,
it is pertinent for MRO providers to work closely with
the OEMs to better meet customers' needs," notes
Choo Han Khoon, executive vice president, Engine
Total Support, ST Aerospace.
Frank Bodenhage, general manager, MTU
Maintenance Zhuhai, notes that the increasing
OEM role and control of the aftermarket is mainly
for newer engine types. "However it is increasing at
a very fast pace. Let's take narrow-body engines as
an example: Whereas OEMs hardly were involved in
MRO activities for the JT8D which was nearly purely
done by MROs and airlines, control did increase on
the CFM56-3 but there were still many alternatives
in the marketplace."
MTU Maintenance recently launched a new
product called MTUPlus Mature Engine Services,
which is specifically tailored to the very needs of
operators of ageing engines.
"Coming to the next generation of engines, there
is still quite a high amount of choice on the engine
provider side, especially on the popular CFM56-
5B/-7 models," says Bodenhage. "For this engine
type, the OEM has introduced specific products that
are aimed at aligning all market players: engine shops,
airlines and lessors, as well as engine valuators,
claiming that engines maintained according to OEM
standards achieve higher residual values. Whereas
this is not proven, it undermines competition from
non-OEM providers, as it diminishes the demand for
There is no let up for the latest generation of
engines. "Finally, it is again a different story when
it comes to engines that are still due to enter into
service, such as the PW1000G, the GEnx and GE-
9X. For these models, a very high level of engines
under OEM coverage is being targeted. In addition,
most of the overhaul work is to be performed within
the OEM partner network, and complex parts repairs
are likely to be done at the OEM only."
What this could mean for operators within the Asia-
Pacific? "Some airlines with in-house capabilities
today may be forced to step out of engine MRO.
Whereas smaller airlines may no longer be granted
any licenses, even larger carriers that do obtain a
license could end of struggling to overhaul their own
engines in a cost-effective way," warns Bodenhage.
"Without the ability to repair parts in-house and
very limited opportunities to acquire third party work
in an OEM-controlled market, those shops will be
confined to pure disassembly work for their own
engines. They may also get some workload from the
OEM. This could represent an opportunity for some
Asian countries with lower labour cost level."
Bodenhage is confident that MTU Maintenance
Zhuhai will benefit from its partner's China Southern's
buying power -- the Chinese carrier is now the
largest in the Asia-Pacific (in terms of ASKs) after
rapid expansion in recent years. The company will
GP7200 engine at
AFI-KLM E&M facility
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