The growing influx of International Aero Engine (IAE) V2500-powered Airbus A320s is generating intense competition among powerplant maintenance companies vying for a share of the potentially lucrative after-sales support market.
LanChile, TAM and Grupo Taca have collectively ordered 103 A319/A320s and hold options on another 84, all powered by the V2500 family. It is estimated this will generate maintenance, repair and overhaul work worth some $550 million to industry over the next 15 years.
The three airlines have the option of tendering the work out independently, or falling back on power-by-the-hour support from IAE. So far, only Central America-based Taca has opted for the latter and given IAE responsibility for tendering out and appointing one of its four partners to provide support.
Consortium partners MTU, Pratt & Whitney and Rolls-Royce are expected to bid for the yet-to-be tendered work. The three, along with Lufthansa Technik, are believed to be bidding directly for LanChile and TAM work. Both carriers are expected to decide over the next few months on how to handle the work.
The Brazilian carrier wants the work performed in-country, rather than shipping engines to Europe or the USA. R-R operates a local subsidiary in the form of Motores Rolls-Royce, and is going all out to win the TAM contract. Motores R-R is in the early stages of investing around $20 million to considerably expand the range of engines it can handle. The cell, which will include a V2500 capability, is expected to be ready for business late next year.
LanChile has reversed a decision to fall back on IAE, and is now intent on making its own selection on outsourcing V2500 support. For the winning contractor there is the possibility of follow-on CFM56-5 work with the scheduled delivery of the first of seven new A340-300s to the Chilean carrier later this year.
MTU, which has outlined ambitious international expansion plans, says it will open a new engine shop in Brazil specifically aimed at the V2500 market. "We want to come to South America and, although we normally join with someone, we think we will go our own way and open up a brand-new shop," says MTU Civil Engines repair and overhaul executive vice-president, Paul Grall, speaking at the show.
The timing of the Brazil move by the German engine company may depend upon the outcome of the TAM and LanChile contests, but Grall adds: "We think we have laid the foundations, and we could begin this year - maybe soon".
Source: Flight International
