MTU and Snecma Services have signed separate initial agreements with China Southern Airlines and China Southwest Airlines respectively, to establish engine overhaul and maintenance joint ventures in Asia.
Under a memorandum of understanding (MoU) between MTU of Germany and Guangzhou-based China Southern, a feasibility study is to be conducted extending through to the middle of next year.
The primary focus of the facility would be to support China Southern's 91-strong fleet of Airbus Industrie and Boeing aircraft, complementing the airframe maintenance and overhaul capability of the carrier's Guangzhou Aircraft Maintenance Engineering (GAMECO) joint venture.
China Southern's two existing GAMECO partners, Hutchison Whampoa and Lockheed Martin, have been invited to join the study. GAMECO had earlier proposed investing some $60 million in its own Propulsion Centre, but this is now on hold pending completion of the MTU study and a decision by the airline's board.
The MTU proposal would initially support China Southern's International Aero Engines V2500 turbofans, along with CFM International CFM56s and Rolls-Royce RB211s. The study will also look at the larger General Electric GE90, which GAMECO had decided not to include in its own proposal because China Southern's nine Boeing 777s were the only twinjets in China powered by the engine.
Meanwhile, Snecma Services of France has concluded a similiar MoU with China Southwest and Keilan, a government technology transfer company based in Beijing and US leasing company, Willis.
The proposed Chengdu Snecma Aero Engine Maintenance Engineering joint venture company has also been targeted at supporting the local CFM56 engine market in China.
The planned new company would take over the former Repair Factory 103's test cell facilities, which are the focus of a series of long-running discussions with potential outside investors.
These discussions had embraced Aircraft Maintenance Engineering, but the Air China/Lufthansa joint venture has since developed its own internal B-2 level CFM56 overhaul competence and now wants to extend this to a full B-3 capability. Observers are warning, however, that there is not the market to support four CFM56 repair shops in China. In addition to AMECO and the planned Guangzhou and Chengdu joint ventures, GE intends to develop its own recently opened On-Wing Support operation in Xiamen.
Source: Flight International
