Most discussions of Pratt & Whitney's aggressive re-entry into the narrowbody market with the geared turbofan - powering the Airbus A320neo and Bombardier CSeries - feature phrases like "game changer" or "step change". But even as chief executives of heavyweight carriers like Delta or Southwest Airlines show a genuine interest in the geared turbofan, in the end competition appears to be less about technology and more about the give and take in negotiating engine deals.
As pundits gather to herald CFM's win of its first Leap order from Virgin America as a kick-start to rival P&W's geared turbofan seeming dominance, CFM's victory begs a single fundamental question - what really underscored the carrier's decision?
Virgin America's commitment to the Leap should have been a shoo-in for CFM from the moment the carrier ordered the Airbus A320neo in January. CFM is the sole engine supplier for the airline's fleet of 39 current model A320s. But the carrier quickly touted the geared turbofan, noting that P&W seemed a bit further along in its new engine development compared with CFM.
And even as the ink was drying last week on Virgin America's contract with CFM solidifying the carrier's commitment to the Leap to power its 30 A320neos, the airline was still endorsing P&W's technology, acknowledging that the basis of its selection of CFM was the manufacturer's stronger performance guarantees, compared with what P&W was willing to offer.
Virgin America stressed it ran a "clean process" in its competition between the Leap and geared turbofan, and that it is not a fan of running back and forth between manufacturers to secure the best bid. After careful evaluation of the products the airline told CFM and P&W to bring their best and final offers to the table. The rivals did just that, and CFM emerged as the winner.
What the Virgin America deal spells out for P&W is be ready to go head-to-head with a competitor that has no intention of letting its narrowbody engine dominance wane, despite a slow start in nabbing commitments for the A320neo.
Voluminous attention being garnered by the geared turbofan's technology is no doubt warranted, but perhaps P&W should heed the call to sharpen its negotiation skills to withstand the ever-lasting, cut-throat nature of doing business with airlines that claim victory when they post high single-digit margins. Despite P&W's game-changing technology, in the end CFM prevailed by simply submitting the best offer.
Source: Flight International
