International Aero Engines V2500-A5 – Reset During Difficult Times?

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5 October 2020 - 10:44, by , in Fleet Analysis, Comments off

The IAE V2500-A5 is one of the most successful and populous aero-engine programmes. Despite known and perhaps unknown changes in terms of its operating demographic, like many aircraft and engine pairings at present, we observe market instances to remain optimistic.

When airlines can offer normalised ASKs, and their aircraft are operating hours and cycles commensurate with their design life, the requirement for engine shop visits will return. For the V2500-A5, which had been exhibiting year-on-year growth in shop visits, a short-term reduction may be welcome, before a continuation of what was seen before.

Bottlenecks have been a feature of the V2500-A5 MRO network in recent years with the major drawback for customers being extended MRO turnaround times – shop visit induction to exit. Some facets of this are due to programme accolades such as better than anticipated engine on-wing reliability meaning that first shop visits have been delayed and clustered; fewer than expected retirements that have meant reduced engine teardowns and as a result access to used serviceable material for consumption in the engine shops; the continued success of the A320, and for the V2500-A5, notably, the A321ceo helped gain share but the extended production run and simultaneous aftermarket component demands put pressure on the supply chain; and finally, Pratt & Whitney’s focus on the PW1000G family and its entry into service issues further required undivided attention. Striking a balance has been difficult, something that competing CFM has been more proactive with historically, despite there being other shared challenges.

The answer is surely capacity, both at the OEM, and within a third-party network. We have observed several developments of late that indicate Pratt & Whitney and IAE’s strategy to avoid future bottlenecks. We note the following as being important to a more robust V2500-A5 engine MRO aftermarket service following Covid-19.

  • In September 2020, Pratt & Whitney and Sanad Aerotech agreed to expand third-party MRO services. Sanad based in the UAE has experienced 19% year-on-year growth for V2500-A5 services.
  • In late-2018, Mitsubishi Heavy Industries Aero Engines (MHIAEL) agreed with Pratt & Whitney to become part of the V2500-A5 engine MRO network. MHIAEL’s involvement with the V2500-A5 dates from 2016. Since the agreement, MHIAEL has quickly established a customer base and its 2019 financial performance shows immediate successes following its agreement with Pratt & Whitney.
  • In late-2017, Pratt & Whitney/IAE contracted IAI-Bedek to complete engine MRO services of V2500-A5 engines at its Israeli facility. The first engine was inducted during December 2017 in a long-term contract that will last 10 years. IAI is supporting engines operated by HNA Group which we believe amounts to 186 engines plus spares.
  • MTU Maintenance Canada completed its first V2500-A5 shop visit in mid-2017. It was projecting 40 shop visit inductions in 2019. MTU is a longstanding partner of Pratt & Whitney and we estimate its share of annual V2500 shop visits at a third of the total.

While certain engine MROs have had capability previous, expanding capabilities and greater access to the market ultimately benefits both Pratt & Whitney/IAE, independents and partners, and the end-user.

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