NICHOLAS IONIDES / SINGAPORE
Carrier expected to opt for IAE engine to power A320s even though leased aircraft will use CFMI rival
Air New Zealand (ANZ) is leaning heavily towards an order for International Aero Engines (IAE) V2500s to power its planned fleet of Airbus A320s in preference to the rival CFM International (CFMI) offering.
Industry sources say ANZ has made a tentative internal V2500 selection for 10 firm-ordered aircraft, plus 20 options, but no contracts have been signed and CFMI could still be in play with its CFM56 engine. The manufacturer plans to make a final offer shortly.
In July, ANZ announced the acquisition of 15 A320s and long-term purchase rights on 20 more. Five of the narrowbodies will be on operating lease from General Electric Capital Aviation Services (GECAS). The sources say these will be powered by CFM56 engines. CFMI is a joint venture between GECAS parent GE and Snecma of France. ANZ already operates CFM56-powered Boeing 737s.
But the sources add that ANZ is willing to operate a mixed fleet, with the V2500 powering the aircraft ordered direct from Airbus, as this will allow it to develop an overhaul capability for the engine at its Christchurch engineering base. In April last year ANZ agreed to establish an engine repair and maintenance joint venture with Pratt & Whitney, a major shareholder in IAE alongside Rolls-Royce.
ANZ said at the time that the Christchurch operation would be based around its existing engineering facility, which primarily focuses on P&W JT8D work. Demand for JT8D maintenance is dwindling, however.
"In particular, the introduction of a new V2500 engine product and the latest engine repair technology will support the future of the business, provide ongoing employment for the region, and meet the demands of a growing customer base in North America and the Asia-Pacific region," ANZ said last year. "The V2500 engine will replace the volumes of work from [R-R] Dart and JT8D engines, as their operational fleets decline."
CFMI has been at a disadvantage in the A320 engine contest as it is not able to offer overhaul work to ANZ in New Zealand. CFM56 overhaul facilities are already established in Australia.
ANZ's A320s are due for delivery between October next year and late 2006, replacing four Boeing 767-200s and nine 737-300s. GECAS agreed some time ago to acquire 767s from ANZ in return for leases on new aircraft.
The airline refuses to comment on when an engine selection may be announced.
Source: Flight International
