Mark King is the new man at the helm of International Aero Engines. He comes to Asian Aerospace just weeks after being appointed to the position of President and CEO of the consortium, but even before taking charge he was already very familiar with the challenges ahead. He spoke to Paul DerbyÉ
Q: You are new to the job. What are your first impressions of IAE?
A: I've learned a lot in a short space of time. Steve Heath and I worked closely together during the last few months of 2003 which helped me gain a good understanding of the business and its markets.
I have been encouraged by what customers tell me. They like dealing with us and they believe in the V2500 as a product.
One of the real positives for IAE is that we are able to offer the best of both worlds. We are a relatively small organisation and we like to think our flexibility and speed of response reflects that. At the same time we have access to the wider technical resources of the partners. That's a nice position to be in.
Q: What sort of year was 2003 for IAE? Do you believe that there is now real optimism that sustained growth can be achieved following the events of 9/11?
A: 2003 began relatively quietly for us, but there are positive signs in the market. We signed our largest order to date with jetBlue to provide the powerplant for up to 115 aircraft, which was a very significant landmark.
We also saw the rapid emergence of the low-cost sector and I see this as one of the key growth areas for us. The number of start-ups is increasing, not just in one location, but around the world. We believe we have a product that is ideally suited to these carriers. It is a case of waiting to see how this develops in the future.
Q: Asia Pacific has been a growth market despite the global downturn in the industry and continues to offer the potential for expansion. How highly does this region figure in IAE's plans?
A: This is an incredibly important part of the world. Forecasts say that there will be an additional 1,500 A320-size aircraft sold in Asia Pacific over the next 20 years. Our goal must be to secure a substantial portion of that business for IAE.
We have many customers in China and they are very important to us. Equally, our partnerships with SALE in Singapore and Air New Zealand have driven growth in Asia Pacific.
Q: IAE recently celebrated its 20th birthday. What are your plans for developing new technologies that will ensure a successful future?
A: We have a team which looks constantly at potential improvements on the V2500. The organisation structure and the fact that we have four shareholders mean we have access to more technology than almost anyone else in the industry. Our aim must be to ensure that we are in a position to power the next generation of 150-seat aircraft.
We have an initiative within IAE called VISTA which is focusing on improvements for the existing V2500 and the potential for new centre-line engines.
Q: What messages are you getting from customers? What are their key priorities and are they changing?
A: After safety, Cost and reliability will always underpin the demands of the customer. The emergence of the low-cost sector will reinforce those two issues in my view. Our Total Maintenance Cost Reduction initiative has helped us to achieve a 30% reduction in the cost of operating the V2500 - and we continue to look at ways of reducing operating and maintenance costs.
Q: How do you view the future of the propulsion market in aerospace? What will be the defining factors over the next decade?
A: I think the configuration of the next generation of engines will be governed more than ever by environmental and noise requirements. The demands will be for quieter, more environmentally friendly operations and as engine manufacturers we will have a substantial role to play in that.
The performance of the V2500 is strong already in these areas, but we continue to look at advances in the years ahead.
Source: Flight Daily News
