Proposals under consideration by Greenwich Air Services to establish an engine-overhaul-and-repair capability in China have been thrown into doubt by General Electric's planned takeover of the company.
Greenwich Air confirms that it has been looking at the possibility of investing in a joint venture in Asia. It adds, however, that until GE's proposed acquisition receives regulatory and shareholder approval, it is prevented from discussing future development plans with the US engine manufacturer.
According to industry sources, one of the options being discussed by Greenwich is the establishment of a repair and overhaul site in Xiamen, China, as part of a possible joint venture. The company identifies a requirement to service the growing number of International Aero Engines V2500 turbofans being ordered by Chinese airlines.
China Northern Airlines has taken delivery of four of 11 V2500-powered McDonnell Douglas MD-90s on order, while China Eastern has signed to take another nine. China Southern and Zhejiang Airlines have ordered a total of 20 V2500-powered Airbus Industrie A320s and are awaiting approval to lease more from GE. Additional V2500-powered A320s are in service with Dragonair in neighbouring Hong Kong, TransAsia Airways of Taiwan and Air Macau.
GE's attitude towards Greenwich Air and its Chinese plans remains unclear. Industry sources, however, are already warning that the company could decide to block any plans to support the V2500 in an effort to boost sales of its rival CFM56 engine in China.
Greenwich may face competition from Hong Kong Aero Engine Services, which plans to add a V2500 repair-and-overhaul capability from the end of 1997, and Japan's Ishikawajima-Harima Heavy Industries (IHI). Dragonair has already sent five of its engines to IHI for overhaul.
Source: Flight International
