ANDREW DOYLE / SINGAPORE & PAUL LEWIS / WASHINGTON DC
Engine manufacturers anticipate fierce price war in bids for newly ordered Boeing 747-400s and Airbus A330s
China Airlines (CAL) has added itself to Boeing's list of potential launch customers for the proposed Quiet Longer Range (QLR) version of the 747-400, following its order for 10 aircraft.
General Electric, Pratt & Whitney and Rolls-Royce are bracing themselves for a fierce price war in the campaign to supply engines for the 747 order and the 12 Airbus A330s CAL has also signed for. The airline has not yet decided which 747-400 version to take.
CAL says the order will comprise six passenger aircraft and four freighters, but has not decided if they will be the baseline 747-400, the extended range -400ER or the -400X QLR with increased range and lower noise levels.
Cathay Pacific is leading the pack of potential launch customers for the QLR, but according to industry sources its order alone would not be enough to kickstart the programme. However, the addition of the CAL order could be sufficient for a QLR go-ahead.
The new 747 programme has been stalled by a lack of market interest, as well as powerplant issues. The manufacturer had hoped to launch the QLR by mid-2002, and inked agreements with GE and P&W to supply versions of the 747-400's existing engines. However, the launch was postponed and the agreements have now expired, with Boeing in talks about offering the aircraft with the R-R Trent 600 (Flight International, 3-9 September).
CAL has said that it intends to run a competition for the engine supply for both types. Its existing 747-400 fleet has a mix of engines, with its 13 passenger aircraft powered by P&W PW4056s, and its 11 -400Fs equipped with the GE CF6-80C2.
CAL has also asked the manufacturers whether they are prepared to set up a joint venture to take over the airline's engine overhaul unit. The airline says P&W has already indicated it is willing to do so, while R-R is yet to make a decision. GE is not interested in a tie-up because it already has an agreement with CAL rival EVA Air.
Meanwhile, Airbus has agreed to let CAL cancel its order for a seventh A340-300, and Boeing will provide the airline with two ex-Singapore Airlines A340-300s on interim lease to fill a near-term capacity shortfall. The A330s are due for delivery between 2004 and 2007, replacing the airline's 12 A300-600Rs, which Airbus will help remarket.
Source: Flight International
