International Aero Engines (IAE) will transform its business into one offering a family of engines for both Boeing and Airbus narrowbodies within five years, under plans outlined on the eve of Farnborough by IAE president Mark King.
King says IAE's VISTA programme, set up to research new powerplant, will leverage the best technology from IAE's existing V2500 engine, but the key focus is a new centreline engine.
"The shareholders have made it clear that they see IAE as the vehicle for addressing the future narrowbody market. Our goal is to compete on the Next Generation Boeing 737 as well as the Airbus A320 family.
"Neither Airbus nor Boeing is firm yet on exactly what they need from a next generation engine. When we understand that better we will commit to a firm programme.
"We will still look at improvements to the V2500, but I expect that VISTA will produce an engine that is predominantly led by new technology."
King's ambitious vision for IAE would re-position the company and open up significant swathes of new business opportunities.
The engine-maker - a joint venture between Rolls-Royce, Pratt & Whitney, MTU and Japanese Aero Engines - will deliver its 2,500th engine this year and has an order backlog of 1,000 V2500s.
King believes this platform will act as a springboard for the next chapter in IAE's history.
Emissions
"Noise and emissions levels will be key drivers for engine manufacturers in the next decade. They will also figure heavily in our plans for future technology.
"We are in the fortunate position of being able to draw on expertise from across our shareholder companies. That gives IAE a true competitive advantage and is why we are looking to base our growth on a high-technology approach."
The boom in the low-cost carrier market has provided IAE with a major source of revenue in the past two to three years. King says the company has captured 70% of the market for powering aircraft in this sector.
"Economics are important at every level in the industry, but fuel efficiency and operating cost are paramount to the low cost carriers. The V2500 has won orders because it passes these acid tests in the market."
Meanwhile, King says IAE is close to launching production of a new turbine blade for the latest -A5 variant of the V2500, technology developed by Pratt & Whitney.
He adds: "I'm positive about the condition of the market. There is a significant amount of activity and seven or eight very strong opportunities for us in the short term.
"Having said that, I think it's still a fragile market. The security situation around the world, coupled with the high oil price, means that a number of carriers are still troubled by financial difficulties. People are still cautious about long-term prospects."
PAUL DERBY
Source: Flight Daily News
