Figure 1. Technical milestones have been passed on PW GTF programs for the applications on Bombardier, Airbus, Mitsubishi and Irkut airplanes and are approaching for Embraer. Source: MTU Investors Day. Click to enlarge.
Nov. 30, 2014: MTU Investors Day: MTU is a major participant in engine development and supplies, participating on the GEnx, GTF and GEnx program. It’s also a member of the joint venture in International Aero Engines and it’s a major player in the aftermarket Maintenance, Repair and Overhaul (MRO) sector, providing a serious competitive alternative to the aftermarket contracts offered by the engine OEMs. Its held an investors day conference Nov. 25. Highlights included:
- Milestones have been passed on the Pratt & Whitney Geared Turbo Fanengine for the Bombardier CSeries, Airbus A320neo family, the Mitsubishi MRJ and Irkut MC-21; and are on schedule for the Embraer E-Jet E2.
- The success of the GTF is requiring huge production commitments.
- The large number of airplane/engine programs require a major ramp-up of production during the next few years.
- The major investment in new engines is largely over for now, leading to the expectation of long-term revenue from MRO.
Figure 2: MTU sees the need for new engines in the 2025 period for a replacement for the Boeing 757/767 and successors to the Airbus A330 and Boeing 787 around 2030. These are estimate dates, not firm plans. Source: MTU Investors Day. Click to englarge.
- The engine aftermarket sector is assessed in Figure 4. Revenue from MRO services will be a major part of MTU’s business model during the next several years.
- Lower oil prices might make it economically viable to reactivate some of the older airplanes. The key is whether oil prices will remain low or not.
Embraer COO interview: Our Oct. 15 posting of our interview with the chief operating officer of Embraer is now open to all readers.