Guy Norris/LOS ANGELES
Boeing says that plans to develop the ultra-long range 777-200X and long haul -300X are "still going forward" despite continuing uncertainty over engine availability and the decision of a potential key customer, EVA Air of Taiwan, to sign a letter of intent for the rival Airbus A340-500/600.
The US manufacturer also says that "-talks are still progressing" with Pratt & Whitney as well as Rolls-Royce over higher-thrust powerplants for the long-range derivatives, and says that it recognises General Electric's "need" to make the business decision not to expand the GE90 beyond the present thrust levels. "Other engine makers are still going forward with plans to meet the thrust requirement," says the company.
Meanwhile, GE rejects assertions that its decision not to expand the GE90 beyond 409kN (92,000lb) thrust, combined with a possible financial write-off of the programme, is a signal that the engine is about to be shelved. "We are not dismantling the programme, but we are not committed to grow it either," says GE, adding that it does not intend to grow the engine for future -200X and -300X derivatives. It says that American Airlines' recent decision to opt for the R-R Trent confirms this. One airline source close to the recent negotiations with American adds "-this puts you at a disadvantage if an airline is considering 777s".
The decision to freeze GE90 development at the 777-200IGW market level is driven by "market considerations" and the high price of future development. GE is being strongly driven to maintain a high operating margin, which reached 19% in 1996 because of the lucrative spares and maintenance business. That compares with a 10% return for Pratt & Whitney and 6% for R-R. With its Greenwich/UNC acquisition, GE Engine Services is expected to achieve sales of $5 billion in 1998, outstripping the size of the new-engine production business.
Source: Flight International
