Q As the industry steels itself for the next downturn, how difficult will it be for IAE to continue in 1999 the strong momentum it built up in 1998?
A 1999 is already looking like another good year for IAE. We have taken two out of three available orders, which means we have 68% of the market share for firm orders. We have been able to announce orders from Spanish carrier Spanair and New York startup New Air. Those are both green field customers to us and we particularly liked that. It fits well with our message that the V2500 is the perfect match for the A320.
If you look over the past two years, it's interesting to note that we have taken a lot more new customers than CFM International. It seems that we have been particularly successful in those competitions where the airlines have choices. We have taken a lot of those deals.
Q But there are none of the very large orders out there this year like there were in 1998, such as the British Airways and joint Latin American deals?
A This year will not be a triple figure orders year like 1998. But there is a lot of vigorous activity on a number of fronts. We are seeing a lot of middle size orders, particularly in Europe, this year. We expect to be busy.
Q As IAE's new boss, what are the key messages that you will bring to Paris '99?
A I think first that our sales momentum has continued and we have proven ourselves. We have provoked our competition to respond. And we are very keen to continue the sales momentum.
Our second message is that we will continue to invest in the product. A good example is the V2500-A1 Phoenix Standard, which involves taking the technology improvements on the -A5 and putting them in the -A1. We have now delivered 39 Phoenix Standards and there has been a lot of good, positive feedback.
We know that we have got an extremely good engine in service and we want to maintain the reputation we have built up.
Q Do you expect to make more order announcements during Paris?
A It's certainly possible there will be new announcements. Paris is a very important show for us and this year's show coincides with some important milestones for IAE. It is our 10th anniversary and we have logged 10 million hours of service this year. So our theme will be our success. At 10 years old and with 10 million hours under our belt, we are in our prime.
Paris is also a very useful show for us. The contact and communication it allows is vital. That's not just with Airbus, but we also have two of our major shareholders here in Europe - Rolls-Royce and MTU. There are also a lot of large and important customers in Europe and we will be able to meet with a lot of suppliers.
Q How do you see the relationship with Pratt & Whitney developing now that there are new presidents at both companies?
A I fully expect continuity now that Louis Chênevert is in position. Louis has come from the operations side at P&W; he will have seen all the benefits that the V2500 has brought to P&W and I have no doubt in my mind that he will continue to support both the V2500 and IAE.
On a personal level, my observation is that the relationship between all of the IAE shareholders is extremely warm and cordial.
Source: Flight Daily News
