Narrowbody engine MRO market analysis - Aero...

47 IMAINTENANCE & ENGINEERING

ISSUE NO. 110 • FEBRUARY/MARCH 2017 AIRCRAFT COMMERCE

Narrowbodies provide theiroperators with capacityplanning flexibility becausethey can operate regional,

short- and mid-length routes. Their useon most of the global route network isreflected by high fleet numbers of about13,600 units. Consequently there is alarge fleet of installed and spare enginesthat power them. The narrowbody enginemaintenance, repair and overhaul (MRO)market is therefore large enough forseveral maintenance providers.

While the airliner fleet is populated bylegacy aircraft, the introduction of new-generation airframes, such as the737MAX and the A320 new engineoption (neo), has added further demandfor the maintenance of emerging, newand improved engine types, including theCFM International (CFMI) LEAP series,and the Pratt & Whitney (PW) PW1000Gengine family.

The main legacy narrowbody typesinclude the 737 Classic and 737 NextGeneration (NG) families, the 757-200/-300, and the A320 current engine option(ceo) family. These are powered by arange of engines. While the Rolls-Royce(R-R) RB211-535E4 and PW2000 powera declining 757 fleet, the 737 Classic,737NG and A320ceo are equipped withCFM International CFM56-3, -7B and -5A/-5B engines. Also, the V2500 engine,manufactured by International AeroEngines (IAE), powers about half of theA320ceo fleet.

The 737 Classic and 757 fleet isdeclining, and the introduction of the737MAX and A320neo families, willinevitably see the engine MRO marketcontinue to decline for some engine types.

While legacy aircraft are still flying,the CFM56 and V2500 will still prosperin the MRO market. It is to be expected,however, that the number of RB211-535s

and PW2000s will decline as the 757 fleetcontinues to be phased out.

This means that MRO providers willneed to prioritise active engines that yieldsufficient numbers of shop visits (SVs) inyears to come. As will be seen, howengines mature will affect SV patternsand therefore engine maintenance volumefor MROs. Assuming that most legacyaircraft operators take delivery of new-generation fleets in the coming years, itcan be expected that legacy fleets will besold or scrapped. A portion of these fleetswill be desirable in developing countries,in areas such as Africa, Latin America,Eastern Europe or the Commonwealth ofIndependent States (CIS).

Harsh environments alter thefrequency of engine SVs, as well as themaintenance workscopes of these matureand ageing engines, as will be explored.

Market developments It has long been observed that engine

original equipment manufacturers(OEMs) want to manage the engineaftermarket for new generation enginesdifferently(see Acquiring maintenancecapability for new generation engines,Aircraft Commerce, February/March2015, page 34). The changing engineaftermarket means that new generationengines are not expected to have the samenumber of options in MRO and specialistrepair providers that has been availablefor older engine types, at least during thefirst 10 to 15 years of their operation. Ithas been recognised in recent years, forexample, that OEMs are keen to ensurethat a high percentage of the repair andoverhaul work carried out on theirengines and associated parts is eitherperformed in their facilities, or remainsunder their branded agreement or servicesnetwork of shops.

Of course, while older engines willinevitably provide more MRO optionsfor airline-owned and independent shops,this has to be balanced with the fact thatthese fleets are in constant decline.

Where thousands of shop visits areexpected for maturing engines, such asthe V2500 and CFM56-5B, an OEM willneed support from several shops to meetthis demand from the market. As yet,demand is low for SVs for newgeneration engines, especially for thosethat have recently entered service. Whendemand does increase, in several years’time, it is unclear as yet what capacityand capability will be required fromindependent MROs that are not alignedwith OEMs.

Demand for SVs is expected, however,to be less frequent and intensive than forolder types, due to the expectation thatthe new designs and materials ofemerging engines will further improve on-wing performance and in-servicereliability.

The purpose of this article is toestablish key trends and SV activity forlegacy and emerging engine types onnarrowbodies. Aircraft Commerce lastinvestigated this in 2014 (see 2014 globalengine maintenance market, AircraftCommerce, June/July 2014, page 35). Asummary of the main narrowbody enginefleet is provided (see table, page 59). Aswill be seen, changing demands haveimpacted the engine MRO market invarious ways.

ICF specialises in MRO advisoryservices in its aviation and aerospaceconsultancy branch. It providescomprehensive strategy, market researchand analysis, maintenance benchmarkingand valuations and appraisals forcustomers, among other services. In arecent report regarding the engine MROmarket and key trends, it established that

Narrowbody engines dominate the engine MRO market, and account formore than half the engine maintenance activity. Charlotte Danielsexamines evolution of this market segment, including a summary of somekey service providers and repair specialists for narrowbody engines.

Narrowbody engineMRO market analysis

more than half the 58,500 installedcommercial engines in operation are fornarrowbodies. In a recent reportregarding the engine MRO market andkey trends, it established that there arealmost 30,000 narrowbody engine typesin operation.

ICF has forecast this total to increaseto about 38,100 by 2026, meaning a fleetgrowth of about 4.5% per annum.

About 55% of the MRO marketsegment is for maturing engines. “Theengine MRO market is the most activeaviation MRO market,” says RichardBrown, principal at ICF. “Asia Pacificremains the most active region for engineMRO spend, closely followed by NorthAmerica and Europe.”

According to Canaccord GenuityAerospace and Defense, the number ofnarrowbody engine shop visits isexpected to ramp up in 2017, particularlyfor the CFM56-7B.

Aircraft retirements from legacyfamilies, such as the 737 Classic, willbolster teardown and part-out activity,meaning higher spares availability andgreen-time engine options for operatorsof the 737 Classic and the 737NG. Theseretirements, and subsequently thepresence of used serviceable material(USM) among older aircraft, will alsonaturally increase with the greaterpresence of new-generation aircraft in themarket.

Shop visit process In addition to a market overview, this

analysis aims to provide comprehensiveoverviews and capabilities of itsparticipants. Through this, one canestablish whether an MRO has in-houseOEM and Designated Engineering

Representative (DER) repair capabilities,for instance. Further examples includewhether the provider can offer fulloverhaul services for a particular engineseries, variant or type, or just a modularinspection.

In the event that an engine requiresperformance restoration or life limitedparts (LLP) replacement, the analysis willshow whether the entire work packagewill be performed by the MRO provider,or some of it will be sub-contracted tothird parties or the OEM. While someservice providers will be able to strip,inspect and rebuild almost any engine, itrequires greater capability to be endorsedto clean, carry out workscope items andoffer repair or modification work wherenecessary.

The shop visit process has beenextensively explored (see Analysing theengine shop visit process, AircraftCommerce, February/March 2009, page45). The cost structure of an engine SV isgenerally determined to be 80% formaterials, and 20% for labour man-hours(MH).

The following are the main elementsof an engine SV process:

l Pre-induction inspection &borescope. The initial phase of the shopvisit starts with the engine being visuallyinspected. Its component configurationand LLP status is established, and aborescope often performed to determineinterior condition. The work required permodule, however, cannot be confirmeduntil the engine is disassembled.

l Engine disassembly. This isrelatively easy for an MRO shop, becauseit does not require OEM approval toperform it. The engine is split intomodules and sub-modules, anddisassembled into piece parts for

thorough inspection depending on thepurpose of the visit.

l Modular inspection. Theconfiguration of modern engines meansthat they can be worked on in parallel. Ifa shop has limited capacity, such as asingle engine test cell, it may need to sub-contract certain work to either the OEMor a similarly-endorsed MRO. If theMRO has sufficient capacity andcapability, it will break modules intopiece parts, and clean and inspect themaccordingly. Specialist repairs are thenperformed in-house or sub-contracted. Itis common for OEMs to be the onlysource of every single type of hi-tech partsrepair capability for an engine.

l Cleaning of gas path componentsand parts. This process requires specialistequipment, such as chemical baths andlaser drilling capability. The cleaning ofnon-airfoil parts, particularly for new-generation engines, may also requirespecialist processes and tooling.

l Parts inspection. Typicallyinspection techniques involve non-destructive testing (NDT), manual/visual,and dimensional inspection. There aretwo types of parts inspection. The firsttype establishes overall condition andascertains whether there is evidence ofcracks, oxidation or erosion. The secondtype is a dimensional inspection thatdetermines whether the part is within theengine maintenance manual (EMM)limits, such as exhaust gas temperature(EGT) margin.

l Parts repair. The ability of amaintenance shop either to performOEM-endorsed repairs, or develop in-house repair methods, is one of the mostlucrative aspects of the MRO aftermarketfor engine maintenance. A repair thatrestores EGT margin, because it is closeto the EMM limits, for example, is morecommon among shops. It is the complexrepairs, such as welding of HPT bladetips, that require a significant investmentby engine shops if they are to performthem. Capabilities that enable complexrepairs include TIG welding, electronbeam (EB) welding and electricaldischarge machining. The investmentinvolved may only be justified formaintenance shops performing a largenumber of SVs.

“There is a difference between a stripand build shop; and a strip, repair andbuild shop,” says Nick Hankins, seniorengineer at Jet Engine Management.

AIRCRAFT COMMERCE ISSUE NO. 110 • FEBRUARY/MARCH 2017


The LEAP engine family is new in service,meaning heavy SV workscopes are not expectedfor several years. Early SVs, often called hospitalvisits, are being carried out at GE and Safranshops.

“While acquiring hi-tech repair capabilityis a heavy investment for MROs, it yieldsthe most profit from a typicalworkscope.” Of course, there hashistorically been an appetite for DERrepairs, and the use of parts manufacturerapproved (PMA) components. These area popular option for legacy engines, andhave provided an alternative for MROshops to develop and market separaterepairs and part options to the OEMs.With the onset of the LEAP andPW1100G, however, and the decline ofageing engines, such as the PW2000 andCFM56-3, Hankins believes that thistrend may be phasing out. “By usingDER repairs, an MRO is distancing itselffrom the OEM,” says Hankins. “Thismay damage independent shops’ abilityto maintain newer engines in 10 years’time.”

Access to OEM-endorsed repairsoften requires access to the OEM’sIntellectual Property (IP). CFM explainsthat General Electric (GE) and Safranlicense their intellectual property relatedto high technology part repairs on a case-by-case basis. All parts repairs areavailable for sale to all MROs as partrepair services from GE and Safran.Repair licensees also compete globally,offering their part repair services to allengine maintenance providers.

OEM contracts, such as Rolls-RoyceTotalCare, or GE’s TrueChoice flighthour (FH) agreement (a power-by-the-hour (PBH) contract) also influence thetype of activity other maintenanceproviders may gain in the engineaftermarket. “If a high percentage ofairlines are tied into an OEM PBHcontract, then an MRO needs to bealigned with the OEM to be involved inmaintenance work for that customer,”adds Hankins. “In that respect, once ashop is established as part of the OEM’s

network it can receive offloaded businessfrom the OEM.” With the LEAP andPW1100G not due to see a high SVdemand for a number of years, it remainsto be seen what portion of contractedairlines will influence the aftermarket forMROs. It is understood, however, that alarge percentage of airlines signed up fornew-generation aircraft have also reachedcontractual support agreements with theairframe and engine OEMs.

The other element of an SV wherebyMRO businesses can profit is in parts,spares or materials. “Althoughmaintenance businesses can benefit froma thriving USM or spares business formature and ageing engines, if airlinesagree materials contracts with OEMs,which is another possibility, this couldreduce this option for independent andnon-aligned shops,” says Brown.

Maintenance evolution ICF has also investigated the market

share of MRO business for narrowbodyengines in 2016. According to Brown,CFM and GE undertook an estimated35% of all CFM56-5B SVs and 44% ofCFM56-7B maintenance. The remaining65% and 56% were divided betweenairline third parties, independent MROs,OEM joint ventures (JVs) and airline in-house business (see table, page 54).

An engine’s age will influence the typeof workscope required, in addition to SVvolume. In turn this will influence theaftermarket for new, maturing and ageingengines. For the LEAP and PW1100G,for example, it is expected that SVs toprevent early issues will be the primaryrequirement in the coming years toremedy engine contaminants, fuel leaks,and other unforeseen incidents.

Meanwhile, the CFM56-7B andV2500, will be undergoing overhauls,

LLP exchanges and performancerestorations. JT8D-200 and CFM56-3operators will be looking for rectificationwork, also known as ‘check and repair’.Because overhauls and fullrefurbishments are no longer economic,operators will prioritise the extension ofthe remaining useable time left in theengine at minimal cost.

“Once the LEAP matures, the numberof MRO shops licensed for the enginewill need to match the demand for SVs,”continues Hankins. “The production ratefor new generation engines, such as theLEAP, is unprecedented, and it dwarfsthat of the CFM56-5B/-7B. It isintroducing a totally new dynamic to themarketplace, even when compared to theintroduction of the CFM56-7B when theCFM56-3 was being phased out.

“OEMs will need to establish a robustsupport network for these engines intime,” says Hankins. “One of threethings will need to happen. OEMs willsubstantially increase their currentcapacity, or free up capacity by offloadingCFM engines elsewhere; or the LEAPmarket will be opened up to moreproviders.”

It is expected, however, that thesenetworks will not expand substantiallyfor some time. “It is difficult forindependent MRO shops to buildbusiness cases now to acquire theappropriate licences for new-generationengines,” adds Brown. “We typically seea period of 15 years in service beforethese properties come available and themarket opens up. I anticipate thatindependent shops will begin buildingbusiness cases in the mid-2020s, oncethey have determined how many SVs thebusiness stands to get.”

Another factor needs to be taken intoaccount that may shift future marketdemands. “The LEAP and PW1100G aregoing to perform as well as, or betterthan, existing engines,” continues Brown.“This is even taking into considerationthe performance of the CFM56-7B andV2500-A5, which has been outstanding.On-wing times have generally beenextended, and we could end up with thePW1100G, for example, requiring onlytwo performance restorations rather thanthree, in its lifetime. One couldreasonably anticipate that engines mayperform for a decade without the needfor an SV. MRO providers have to takethis into account.”

Market survey Below is a market overview for each

main narrowbody engine family, followedby an overview of MRO shops that havelicences and capabilities to performservices. Not all maintenance providersfor the subject engines are mentioned.Only those mentioned by the OEMs, and



APPROXIMATE NARROWBODY ENGINE FLEET AND SV NUMBERS 2017

Aircraft Engine No. aircraft No. active No. active SV SVApplication(s) type in service engines engines estimate estimate

2017 2014 2016 2014 2016A320neo, 737MAX LEAP 30 N/A 60 N/A N/A

A320neo, C Series, PW1000G 72 N/A 144 N/A N/A

Embraer E2, MRJ

A320ceo family V2500 2,925 4,946 5,850 800 800

737-300,-400, CFM56-3 858 1,614 1,716 260 245

-500

A320ceo family CFM56-5B/5C 3,535 6,256 7,070 460 600

737-600,-700, CFM56-7B 5,870 9,166 11,750 810 1,100

-800,-900, 900ER

757-200,-300 RB211-535 448 648 896 140 70

757-200,-300 PW2000 281 498 562 120 110

MD-80, 727-200 JT8D-200 380 1,178 760 290 160

DC-9

Total 14,399 24,306 28,808 2,880 3,090

Source: active (in-service) fleet numbers provided by Flight Global Fleet Analyser (March 2017)

MRO providers that participated in thissurvey have been included to ensure thataccurate capabilities of each provider aregiven. Other MRO options per enginemay be available, with varying levels ofrepair, overhaul and general inspection ormaintenance capabilities associated.

CFM International LEAP CFM is a 50:50 joint venture between

General Electric and Safran AircraftEngines. Its latest product, the LEAPengine family, has three models forvarious aircraft applications. Theseinclude the Airbus A320neo (the LEAP-1A), and 737 MAX (LEAP-1B) and theCOMAC C919 (LEAP-1C).

The LEAP engine has three lowpressure compressor (LPC) and 10 highpressure compressor (HPC) stages, plustwo high pressure turbine (HPT) and five(LEAP-B) to seven (LEAP-1A/-1C) lowpressure turbine (LPT) stages. It hasthrust ratings of 23,000-35,000lbs acrossthe series. Composite materials and 3-Dprinted parts (also known as additivelayer manufacturing, or ALM) are thenew technologies used in the engine.

The current market According to CFM International,

there are 60 LEAP engines in service. Afurther 12,200 engine orders andcommitments have been placed for thefamily. At this time, the LEAP engine isbeing supported at GE’s Lafayette, INsite; as well as the Safran sites in Belgiumand France.

The LEAP engine entered service inmid-2016, so CFM does not expectperformance restorations or overhauls forseveral years. Most early entry-into-service (EIS) support, sometimes referredto as hospital visits, is occurring at theGE and Safran shops.

Several airlines have shown interest inoverhaul licences for the LEAP, and CFMexpects industry capacity to grow overtime as engine overhauls come due, asthey did for its predecessor, the CFM56.CFM explains that it has a differentapproach to MRO and OEM competitorsas follows:

l By limiting FH contract coverage(through PBH contracts) of the fleet withthe OEM, which results in a largenumber of overhauls available forcompetition.

l CFM grants licences to all engineshops interested in competing foroverhaul, which results in a competitiveoverhaul segment. This gives CFM airlinecustomers, which do not have their ownin-house capability, a choice of engineshops.

l A competitive overhaul segmentallows a USM segment. By comparison,engine OEMs that have very high FHcontract coverage and very little overhaulcompetition, control the USM segment,opting not to buy used engines or usedspare parts, according to CFM. CFMexplains that this allows customers tooptimise engine residual values.

According to Hankins, SVs for theLEAP will not occur for at least threeyears. “Removals will be unplanned orretrofit upgrades at this stage,” he says.“The first scheduled SVs for performancerestoration and LLP replacement will notbe until 2020.” As a large number ofCFM56-5B and -7B engines are still first-run, Hankins also expects that there willbe a substantial overlap of demandbetween the LEAP and the CFM56engines. There also remains a hugeappetite for 737NG and A320ceoaircraft. This in turn will also influencethe direction of the MRO activity.

MRO & repair providers Lufthansa Technik AG (LHT) has

been appointed as one of the firstmaintenance providers for the LEAPengine family. LHT’s engine division islocated in Hamburg, Germany, whichwill also be the location for LEAPmaintenance.

Various JV shops and subsidiariesform part of LHT’s overall maintenancecapabilities. These include Airfoil Services

Sdn Bhd (Petaling Jaya/Malaysia), BizJet(Tulsa/USA), N3 Engine OverhaulServices (Arnstadt/Germany), LufthansaTechnik AERO Alzey (Alzey/Germany),Lufthansa Technik Turbine Shannon(Shannon/Ireland), XEOS (JV GEAviation and Lufthansa Technik, ŚrodaŚląska/Poland).

LHT is a leading example of anairline MRO shop that also works closelywith OEMs, so it provides high-level andextensive coverage of the engines itmaintains.

Its wider shop presence means thatLHT offers maintenance services acrossEurope, North and South America, andmost of Asia Pacific, Middle East andAustralia. LHT’s first official SV for theLEAP engine is a ‘B’ event scheduled for2021. A ‘B’ category SV involves amoderate workscope, such as aperformance restoration or modulerepair. An ‘A’ event requires major work,such as total engine overhaul, whereas a‘C’ level SV is relatively minor, such as asingle component repair.

As established previously, MROproviders need access to OEM IP, licencesand the ability to invest in new toolingand repair technologies so as to acquiresufficient capabilities on new-generationengines. Several hundred repairs havebeen developed for the LEAP engine, forinstance, including to composite fanblades and bladed disks (blisks) present inthe engine. The HPT blades are also adifferent design to older CFM engines.

“There are two reasons why LHT hasgained access to new engine types andobtained the required licences,” explainsMarc Wilken, director of product salesand engine lease at Lufthansa TechnikAG. “OEMs seek our partnership early inthe lifecycle of these new engines, to



MTU is an RRSP for the PW1000G family. It hasdesign responsibility for the LPT and severalstages of the HPC. It will be offering MROservices at part of PW’s network.

improve their products and deal withearly technical removals. LHT enteredinto partnerships with OEMs, forexample, to support new engine typeswith on-site or on-wing solutions to keepengines with teething problems flying.

“LHT also performs early repair andoverhaul work on the LEAP and othernew-generation engine types,” continuesWilken. “Our strong airline connectionsadd further strength. As LHT acts as thecompetence centre for all MRO-relatedactivities in the Lufthansa Group,customers such as Lufthansa, Swiss,Austrian, Brussels, Germanwings,Eurowings, Lufthansa Cargo andLufthansa CityLine use LHT’s services vialong-term agreements. This generatesadded experience and value as an airlineMRO. Programmes such as LHT’ssmart.life, which is aimed at reducingMRO cost by optimising workscopes,material usage and time on-wing, wouldnot be possible without that experience.”

The ability of MRO providers toperform extensive in-house repair is afurther benefit. Engines are expected toremain on-wing longer, and improvedperformance and technologies, such as3D printing, have promoted a trend forlower replacement rates of expensiveengine components. The LufthansaTechnik Parts repair unit EPAR (EngineParts and Accessories Repair) has a broadrange of high-tech repairs fornarrowbody engines, including the LEAP.EPAR repairs are performed within theglobal network at following locations:LHT Hamburg for the repair of fanblades, rotating and stationary airfoils,engine components and cases; LHT Berlinfor the repair of engine tubes and ducts;

LTTS (Lufthansa Technik TurbineShannon) Shannon (Ireland) for therepair of LPT vanes and HPT shrouds;ASSB (Airfoil Services) Kuala Lumpur(Malaysia) for the repair of HPC andLPT blades; and Bizjet in Tulsa (USA) forthe engine teardown process.

After successfully developing GEnxfull capability, Air France Industries KLMEngineering and Maintenance (AFI KLME&M) next target is adding the LEAP 1Aand 1B to its maintenance portfolio. Anexample of an airline/MRO that hasmaintained successful alliances to OEMs,AFI KLM E&M has been performingendurance tests of the LEAP engines since2014. AFI KLM E&M also announcedthe creation of a JV with Safran,specialising in airfoils repair. Theairline/MRO boasts many subsidiariesand JVs that bolster its repair andmaintenance capabilities, including AeroMaintenance Group and Barfield(Miami), AFI KLM E&M ComponentsChina, CRMA (Paris), EPCOR(Amsterdam), KLM UK Engineering(UK), AAF Spares (Miami), AMES(Dubai), ATI (Morocco), Bonus Tech(Miami), IGO Solutions (Paris), andSpairliners (Hamburg).

CFM explains that its intentions forthe LEAP are similar to the CFM56family, in that CFM will make LEAPoverhaul licences available to MROs thatwant to enter the overhaul segment. Sincethe fleet is small and performancerestoration overhauls are many yearsaway, CFM expects interest from thirdparties to increase once the fleet grows insize and performance restorationoverhauls begin in large quantities, aswas the case for the CFM56.

PW1000G family The PW1000G PurePower engine

family, also known as the geared turbofan(GTF) engine, counts the A320neo,Bombardier C Series, Mitsubishi MRJand Embraer E-Jets (E2) among its mainapplications. Alongside the standardarchitecture seen in jet engines, thePW1000G’s design incorporates agearbox between the fan and the LPC.Each PW1100G series has three LPCstages, eight HPC stage, two HPT stagesand three LPT stages.

The current market Canaccord says that 138 PW1100G

engines were built in 2016. It isforecasting that 350-400 units will bebuilt in 2016, with a further 800 in 2018.By 2020, it estimates that production willramp up to 1,200 engines. In 2017,therefore, only some initial light-scale SVwork will be needed.

PW Columbus Engine Centre, basedin Georgia, USA,was announced by PWas the first facility to begin maintainingPW1100G-JM engines in June 2016. Inaddition to this facility, PW hasestablished a network of MRO providers(MTU, Japan Aero Engines Corporation(JAEC) and Lufthansa Technik) tosupport the ramp-up of the engine intoactive service. Over time, as the volumeof overhauls grows, the network isexpected to expand to include airlinesand other MRO shops.

The strength of relationships betweenthe OEM and MRO shops is oftenexemplified via a risk and revenuesharing partnership (RRSP) agreement.Partners, such as MRO shops that haveRRSP agreements with engine OEMsinvest a certain stake towards themanufacture and design of the engine, tobenefit from the maintenance activityonce the engine is in service. ThePW1100G has one such RRSP networkinvolved in its aftercare.

MRO & specialist repairs In July 2016, Lufthansa Technik

became a member of the aftersales servicenetwork for the PW1100G engine family.As part of PW’s RRSP network, it offers arange of MRO services for the type. InFebruary 2017 LHT announced a JVcompany with MTU Aero Engines. This



Aero Norway specialises in CFM56 maintenanceand repair. It can undertake various turbine,compressor and combustor repairs in-house.



is a 50:50 investment whereby thecompanies will set up a new engine shopspecifically for the GTF engine. This shopis anticipated to undertake 300 GTF SVsevery year, once it is set up in 2020. Thelocation is yet to be determined.

This joint alliance between LHT andMTU is in addition to its JV ASSB, whichwas established in 2003. Airfoil ServicesSdn. Bhd. (ASSB) near Kuala Lumpurspecialises in the repair of LPT and HPCairfoils for the V2500 and CFM56-3/-5A/B/-7B.

LHT says that four SVs for thePW1100G were completed in 2016. Itexpects that about 10 B and C events willbe undertaken in 2017; signifyingperformance restoration and modular orLLP repair work only from 2018. Thisshould rise to about 25 scheduled B andC category workscopes in 2018. LHTsays that no major, A level SVs arecurrently scheduled.

Headquartered in Hannover, MTUMaintenance is a business division ofMTU Aero Engines. Its facility specialisesin maintenance, hi-tech repair and repairdevelopment for the PW1100G engine; inaddition to its anticipated JV with LHT.As an engine parts manufacturer, MTU isoften responsible for elements of anengine’s design, so it was established earlyon as a natural option to providemaintenance services once such an engineis in operation.

MTU has an RRSP share of 15-18%in the PW1100G engine, depending onaircraft application, and is therefore a keypresence of PW’s RRSP programme.MTU Aero Engines can act as an MROprovider as part of the OEM’s MROnetwork, either specialising on the enginesubsystem it holds the designresponsibility for, or providing servicesfor the engine as a whole.

On the GEnx and GE9X, forexample, MTU Aero Engines has thesystem design responsibility for theturbine center frame (TCF), and will actas the OEM’s TCF repair facility, carryingout all TCF repairs that are under OEMcontract.

“MTU Aero Engines has system

design responsibility for the PW1100G’sLPT and several stages of the HPC,”explains Leo Koppers, senior vicepresident MRO Programs at MTU AeroEngines. “We will also repair andoverhaul complete engines on the OEM’sbehalf.

“New engine types, such as thePW1100G-JM, typically generate smallerworkscopes related to infancy issues afterprogramme EIS which require earlytechnical removal visits,” continuesKoppers. “Scheduled repair visits onlycome years after EIS, and LLPreplacement usually only occurs duringsecond SVs and subsequent visits. Formodule MRO work, we are typicallyallocated work in the amount equivalentto our RSSP share.”

Koppers explains that there will beincreased OEM coverage for next-generation engines, so independentproviders will need to intensify theircooperation with OEMs to access bothengine MRO and IP protected repairlicences and the volume of MRO workthat will be available in time. “Whereasairline-affiliated providers can count onsome baseload volume from its parentairline, independent MROs typically needto entirely acquire their workload fromthe third-party market,” says Koppers.“Airlines potentially also get better accessto licences during engine acquisition.”

For all next generation engine modelsmentioned above, MTU will only act asan OEM network provider for now.

IAE V2500 The V2500 is a two-shaft high-bypass

turbofan engine. The V2500-A5 series isone of the main engine options for theA320ceo family. There are five mainvariants: the V2522-A5, V2524-A5,V2527-A5, V2530-A5 and V2533-A5. Itis manufactured by International AeroEngines (IAE), which is a consortiumformed of four engine OEMs: Rolls-Royce (R-R), MTU Aero Engines, PWand Japan Aero Engine Corporation(JAEC). R-R designed the HPC, whilePW developed the combustor and the

two-stage air-cooled HPT. JAEC providedthe LPC system, and MTU wasresponsible for the five-stage LPT in theV2500.

Current market “There are about 6,000 V2500-A5

engines in service,” explains GerdOckerman, programme manager at JetEngine Management Limited. “This isout of a total of more than 6,500 V2500-A5s built. A320ceo production will endby 2019, so V2500-A5 engine productionis expected to terminate around the sametime,” continues Ockerman. He estimatesthat on average, two heavy SVs areexpected within the V2500-A5’s 20,000engine flight cycle (EFC) LLP stack life.“For low and medium thrust ratingswithin non-harsh environments, it ispossible to reach LLP life within oneoverhaul run,” says Ockerman.

According to Richard Hough,executive vice president of technical atEngine Lease Finance Corporation, justunder 50% of all V2500 engines are stillon their first SV run, so a substantialportion have yet to undergo a major SV.“There are expected to be 1,000 visits peryear for the V2500 from 2017 to 2020.This is an increase of 25% from 800events during 2016,” continues Hough.

A service bulletin (SB) was issued inFebruary 2016, signifying the need forinspection and possible replacement of anHPT due to a quality issue. This wasenforced by an AD in October 2016.Because of the AD, there has been a sharpincrease in SV activity and spare enginerequirement. IAE is therefore working onincreasing shop capacity and spare engineavailability to support the in-service fleet.

PW shops for IAE V2500 enginesinclude PW Columbus, PW Christchurch,PW Shanghai, and PW Turkish EngineCentre. Other MRO providers globallyinclude Rolls-Royce East Kilbride, IAIBedek, LHT, MTU Maintenance, Iberia,Turbine Services and Solutions (TS&S)and IHI Aero Engine Maintenance.

MRO & specialist repairs LHT performed 110 V2500-A5 SVs

in 2016. About 70 of these were major‘A’ category visits involving engineoverhaul, while the rest required lightermodular or repair work. The LufthansaTechnik EPAR division has a broad rangeof high-tech repairs for the V2500. Theseare in addition to the CFM56-5A/-5C/-5B/-7B, which will be expanded on later.“For engines overhauled on behalf of theOEM, the OEM assigns all correspondingwork to LHT in accordance with ourcapabilities,” explains Wilken. “Workrelated to disassembly, assembly andtesting for these engines is performed inour DAT shops. All repairs are performed

ESTIMATIONS FOR MARKET SHARE - NARROWBODY ENGINE MRO SPEND

CFM56-5B CFM56-7B V2500Engine OEM 35% 44% 32%

Airline Third Party 16% 15% 8%

Independent 16% 19% 43%

Joint Venture 10% 4% N/A

Airline In-House 9% 9% 2%

Unknown 14% 9% 15%

Total 100% 100% 100%

Source: Guide estimations provided by ICF for 2016

in the EPAR Network, which consists ofLHT-affiliated as well as OEM-affiliatedEPAR shops, and is managed by LHT.”

Unlike its role for the PW1100G,MTU Maintenance acts as both anindependent and OEM MRO providerfor the V2500-A5. It performs an averageof 300 SVs per year for the engine out ofMTU Maintenance Zhuhai and MTUMaintenance Hannover, which offerMRO services, complemented by ASSB,which specialises in repairing LPT andHPC airfoils.

“MRO work on current, but not fullymature programmes, such as the V2500-A5 or CM56-5B/7, sees an increasingnumber of major or overhaul visitscompared to smaller fixes,” explainsKoppers. “These increasingly involve LLPreplacement as the programmes mature.

“Mature engines are morecomplicated in this regard,” continuesKoppers. “MRO work will either involvefull overhaul workscopes including LLPexchange (typically for longer termoperations), or ‘minimised’ workscopes.These are then tailored to very specificneeds (typically for shorter termoperations). Whereas the focus of anoverhaul visit is a long on-wing time, the‘minimised’ workscopes are aimed atlowering cost and matching a pre-definedoperational timeframe where investing inan overhaul visit is no longer deemedeconomic,” adds Koppers. “On theV2500, we typically perform one-quarterof SVs under OEM contracts, which canvary from year to year. Furthermore, weprovide a range of specialised repairs forV2500 parts, such as the LPC, HPC,combustor, HPT and LPT.”

Headquartered at Ben GurionInternational Airport, Israel AerospaceIndustries Ltd Bedek Aviation Group (IAIBedek) is an example of a non-airlineaffiliated MRO provider. In this sense, itis deemed an independent MRO business.“IAI has technical and supportagreements in place with major OEMs,”says Jacob Rozman, vice president andgeneral manager, at IAI’s Engine Division.IAI has additional agreements in placewith the OEMs to perform maintenanceof narrowbody and widebody engines, onbehalf of the OEM.

IAI Bedek performs about 15 V2500-A5 SVs per year and expects to reach 25-40 SVs per year over the next three years.80% of these visits involve major repairor overhaul work. IAI has a

comprehensive list of in-house repairs itcan perform on the V2500-A5 includingfan casings, LPC, HPC, combustor, LPT,HPT and seals and casings). Rozman saysthat blade and vane repair work is oftensub-contracted back to the OEM shops.

“Lately it has been more difficult toobtain access to IP for new engine types,”continues Rozman. He also discloses thatthere are few DER repair optionsavailable for the V2500-A5.

Evergreen Aviation Technologies(EGAT) had been a JV between EVA Airand GE. Based in Taiwan, EGATperforms a limited number of up to 20V2500-A5 shop visits per year, most ofwhich are overhauls. While it carries outthe overhaul workscope within its engineshop, EGAT subcontracts repair work tothird-party vendors such as Chromalloy.

Primarily focused on GE’s CF6 andGEnx engine services, its repair shop istargeted at widebody engines.Agreements that EGAT holds with GEare included in an engine JV, which is GEEvergreen Engine Services, coveringtraining, parts procurement, andmanuals, all of which requires access toIP. EGAT explains that securing access toany engine IP is extremely difficult forany airline-affiliated MRO, even atengine purchases during fleet renewals, incurrent times. At best, MROs may securean agreement that provides MRO servicesto specific engine types limited to thoseoperated by airline affiliates.

FL Technics is an MRO based inLithuania. Its base maintenance facilitiesare in Vilnius and Kaunas in Lithuania,and Jakarta, Indonesia. Its network ofline maintenance stations covers morethan 25 locations in the UK, Russia, theCIS, Norway, Sweden, Baltic States, SaudiArabia and Bangladesh.

FL Technics performs lightmaintenance services for the V2500-A5,servicing at least one engine per year todate. It performs a large part of lightworks within the EMM, including QECLRU swap, engine model re-configuration, fan blade change, engineremoval or installation, NDT andborescopes at its hangars in Kaunas andVilnius.

Its main narrowbody expertise is onthe CFM56 family, and regional CF34engines. “Our primary focus is ageing,sunset and mature engine types,” saysAsta Albrichte, head of engines andcomponents management department atFL Technics. “Our tailored solutionsinclude on-wing maintenance services,DER/PMA repairs, engine exchange,green-time lease practice and surplusmaterial usage.”

PAS Technologies is a specialist repairprovider for the V2500-A5. As exploredpreviously (see Narrowbody engine hi-tech and specialist parts repair providers,Aircraft Commerce, August/September2015, page 62), PAS Technologies’ repaircapabilities for the engine include theHPT stage 1 cooling (TOBI) ducts andbearing housings, seals and supports.These repairs are granted under a PWdesignated service provider (DSP)agreement, which affords PAS the right tooperate under the PW brand, with accessto PW engineering resources. Thisincludes engineering documentation andEA/IEN in support of repair developmentrequirements for customers. PAS alsorepairs LPT shroud seal segments andinner duct segments. These repairs needhigh-tech specialist processes, such asthermal spray coatings, honeycombbrazing, EB welding, and machining.

Iberia Maintenance is headquartered



IAI Bedek offers MRO capabilities for the V2500and CFM56 families. It is a fully independentMRO provider, that maintains various technicaland support agreements with engine OEMs.

in Madrid, Spain. A subsidiary of IberiaAirlines, it performs independent third-party maintenance in addition tomaintenance of its in-house fleet ofengines. Iberia’s fleet consists of A320ceo,A330 and A340 family aircraft. It cantherefore provide MRO services for theengines powering these aircraft types,including the V2500-A5 for the A320ceo.

Iberia Maintenance acquired thecertification to repair V2500 engines in2014. V2500 SVs are ramping up, with12 engines in 2016, and double thisnumber expected in 2017. IberiaMaintenance can provide in-house repairsacross each main engine module.

CFM56 family Both GE Aviation and Safran Aircraft

Engines produce components for theCFM56 family. GE produces the HPC,combustor and HPT. Safranmanufactures the fan, gearbox, exhaustand the LP system, including the LPT.Some components are made by Avio ofItaly. The engines are assembled by GE inEvendale, Ohio and by Safran inVillaroche, France. The completedengines are subsequently marketed byCFM.

The CFM56 first ran in 1974. Itsdesign includes a fan and three-stageLPC, followed by a nine-stage HPC,annular combustor and single-stage HPT,four-stage LPT. The three series thatmake up the CFM56 family include theCFM56-3, the CFM56-5 and theCFM56-7. Applications include theCFM56-7B-powered 737NG, and theCFM56-5B-powered A320 family. The -5C series is the only engine used topower the A340-200 and -300 series. TheCFM56-3 meanwhile powers a declining

fleet of 737-300s, -400s and -500s. Given the longevity of the engine

variants in the CFM56 family, it isunsurprising that it has so many optionsfor MRO and specialist repair services, inaddition to OEM-owned facilities.

GE-owned overhaul sites for CFM56engines include: GE Celma, Brazil; GEStrother, Kansas USA; GE Malaysia; andGE Wales. Safran-owned overhaul sitesfor CFM56 engine includes SafranAircraft Engines Services Brussels; SafranAircraft Engines Services Americas(Queretaro); Safran Aircraft EnginesServices Morocco; and Safran AircraftEngines, Saint-Quentin, France. OtherOEM shops that provide maintenanceservices for the CFM56 include PWShanghai, and the Turkish Engine Centre(CFM56-7B only).

Aside from the OEM shops listedabove, CFM says there are a further 34overhaul shops that provide services forthe CFM56 family. Including the OEMshops, this totals 42 MRO providersglobally for the engines.

Some of these are detailed in thefollowing sections. The remaining shopsinclude Air India, Alitalia, All NipponAirways, American Airlines, ChinaAirlines, Ethiopian, GA Telesis Finland,Global Engine Maintenance, GMF AeroAsia, Jordan Airmotive, Lockheed MartinCommercial Engine Services (LMCES),Korean Air, Pakistan InternationalAirlines, Saudia Airlines and StandardAero.

Current CFM56 market CFM says there were about 2,300

SVs in 2016 across all CFM56 modelscombined, minus the CFM56-2 engines.Compared to the 2014 market survey,

activity has increased by about 10%. In2014 an estimated top-end figure ofabout 2,100 SVs were forecast for theyear across CFM56-3/-5A/-5B/-5C and -7B series.

Hankins estimates that GE will carryout about 700 SVs in 2017. These will bedivided across its shops accordingly: GEWales, 130-140 events; Malaysia, 100;Strother, 100-150; and Celma, 300.Meanwhile it is predicted that Safran willperform 250-350 SVs this year.

In 2016, ICF estimates that there werefewer than 250 SVs for the CFM56-3.The engine is gradually declining innumbers (see table, page 58). There are1,720 engines in operation according toCFM. By 2020, SV activity is expected tohalve to about 120 SVs worldwide,declining at a rate of about 10% per year.There are now not enough engines for allthe MRO providers offering SV services.

As described, the workscope forCFM56-3 engines is likely to shift fromperformance restoration and LLPexchange, to remedial maintenance, suchas minor repair work. Many of theoriginal MRO shops have also left theoverhaul market. “The -3 series is gettingto the point where few people can justifyrefurbishment,” confirms Hankins.“Operators are instead swappingmodules and relying on USM or green-time engines. The lessor GECAS has alsobeen retiring its -3 engines, opting to parkits 737 Classics and sell the engines toairlines to use up the green time, or tobrokers for part-out.

“Market demand has dropped furtherin the last couple of years,” addsHankins. “Developing regions such asAfrica have developed a bit more appetitefor the engines, however. The demand fornew-generation types in other areas willinevitably mean more of these engines,and the airframes they equip, moving todeveloping regions.” In essence, theCFM56-3 is a near run-out engine series,albeit with a market that is still evident20 years after the production lines ceasedto produce new engines.

According to Flight Global’s FleetAnalyser, there are about 7,000 CFM56-5B and -5C engines in service for theA320ceo family. SV activity is buoyantfor the CFM56-5B, which is still areasonably young variant in the family.ICF forecasts an overall increase in SVsfrom about 600 to 800 per year in the



Iberia specialises in V2500, CFM56 and RB211-535 maintenance services. Based inMadrid, its facilities include five basemaintenance hangars, an engine workshop, testbench, component workshop and NDT centre.

next 10 years. This is compared to the400-500 SVs that are estimated to havetaken place in 2014.

Removal intervals for the CFM56-5Baverage 10,000EFC, or about five years,assuming normal utilisation in a non-harsh environment. “In a non-harshenvironment an operator operating atlow to medium thrust might be able toreach the first LLP limiter of 20,000EFCbefore needing a removal. In a harshenvironment, however, this can drop to3,000-5,000EFC between SVs, meaningintervals of two to three years,” explainsHankins. “For non-harsh environmentoperators, averaging 3,000EFC a yearequates to five to six years between SVs.

“The growth of regional and short-haul operations in the Middle East, theAsia Pacific, Africa and India which areconsidered harsher environments thanEuropean and North Americanoperations, is likely to lead to more -5Bengines flying with shorter intervals,”adds Hankins. “This would naturallylead to more SVs. If more 737NGs moveto these regions with the 737MAX’sservice entry, then the market will see alevel of revitalisation. Overall, however,the CFM56-5 MRO market remains in aperiod of growth for service providers.

Flight Global’s Fleet Analyser showsabout 12,000 CFM56-7B engines inservice today. This number has grownfrom the 9,166 installed engines in 2014.SV activity has increased to almost 1,100events per year according to ICF.

It forecasts that over the next 10 yearsactivity is expected to peak at about2,000 SVs by 2022, before commencing agradual decline. Second and third runsare expected for the later -7B modelsbefore they are phased out. This meansthat -7B engines should be generating SVactivity for MRO shops into the 2030s.

“Large -7B operators can be groupedinto two categories,” explains Hankins.“There are those with their own engineshops, such as KLM and Lufthansa, andthere are those that use one of the largerMROs.

“For everyone else there remains a

wide choice, with in excess of 20 shopsoffering a substantial range of services, allcompeting in this field,” continuesHankins. “The bulk of -7B volume isunder maintenance-cost-per-hour(MCPH) contracts, however, which areissued by GE.” He also observes thatMROs will cease investing in the CFM56once the LEAP becomes more prevalent.

It is the sudden emergence of used,commercially available 737NGs, broughton by the adoption of new-generationaircraft by operators, which could impactSV activity for the CFM56-7B. The oldest737NGs are now almost 20 years old, soretirements are inevitable. It is expectedthat retirements for the 737NG willincrease significantly over the next four tofive years; 15 NGs have reportedlyalready come on to the market so far in2017. If this number increases to 50 ormore used 737NGs, for example, it coulddramatically change the dynamics of theCFM56-7B market.

MRO & specialist repairs LHT provides MRO services for the

CFM56-5A/-5B/-5C and -7B at itsHamburg engine shop. It performed arange of A, B and C category SVs for theCFM56-5A/-5B in 2016. These totalled184 visits. It undertook 64 shop visits forthe CFM56-7B. “LHT offers repairs onthe entire gas stream on the CFM56,except HPT blades,” explains Wilken.“Airfoil Services (ASSB) is a specialistrepair source for the HPC and LPTblades, whereas LTTS focuses on the HPTshrouds and LPT vanes. The Hamburgshop carries out HPT vane repairs.

“EPAR also provides repairs on allthe cases, stationary and rotating parts,for these series,” continues Wilken.

MTU Maintenance Canada, situatedin Vancouver, offers MRO servicesspecifically for mature engines, includingthe CFM56-3. Its Zhuhai facility offersMRO for the -5 and -7 series, in additionto the -3. Its Hannover facility alsoprovides services for the -7B. LPT andHPC airfoil repairs for these variants are

again performed at ASSB. While -3activity has declined to irregular SVs,MTU Maintenance carries out about 50CFM56-5B SVs per year, in addition to100 CFM56-7B visits.

MTU Maintenance provides fullrepairs on the CFM56-3/-5B and -7Bvariants from fan to LPC and HPCairfoils, through to the combustor, andLPT airfoils and remaining enginecomponents. MTU Maintenance hasdeveloped MTUPlus repairs, a full set ofrepairs approved by the EuropeanAviation Safety Agency (EASA) and theFederal Aviation Administration (FAA) asan alternative to both OEM repairs andOEM new parts for the CFM56-7.MTUPlus repairs focus on scrapreduction through higher parts durability,increased engine efficiency, andsignificantly lower maintenance costs.

AFI KLM E&M is licensed to carryout the full scope of maintenance servicesfor the CFM56-5A/-5B and -7B series. Itprovides MRO services for the CFM56-5A and -5B from its Paris facility, whereit performs about 80 SVs per year.

CFM56-7B maintenance is carriedout from its Amsterdam location, whereabout 100 SVs occur annually. Most ofthese visits are performance restorations.“For the CFM56 series no specialbranded agreement is necessary,” saysMike Bezuijen, technical sales directorengines at AFI KLM E&M. “For theCFM56 series, AFI KLM E&M canperform repairs on behalf of the OEM,and we frequently receive offloads fromthe OEMs for those series. AFI KLME&M is also an official warranty repairstation for the engine family.”

AFI KLM E&M also develops certaininspection and repair methods on behalfof the OEM. “For example, we havedeveloped an NDT inspection of HPCblades after blending with a borescope,”continues Bezuijen. “This was developedin-house, and was already approved forthe CF6 engines by GE. This process willnow be introduced for the CFM. Thiswill remove the need for a compressortop case removal, and prevent the one-offborescope inspection needed a certainamount of cycles after the blend repair,”explains Bezuijen.

AFI KLM E&M in general performsin-house repairs on all modules for theCFM56-5A/-5B/-7B, except for bladesand vanes. Some airfoil repairs such asHPT blades and vanes are contractedback to the OEM. AFI KLM E&M alsodevelops in-house repair capabilities forsome major parts. In-house hi-tech repaircapabilities provided by the companyincludes inlet gearbox (IGB) shaft threadreplacement (electron beam weldingrepair). AFI KLM E&M was the first tosuccessfully perform the repair and offerit on the market, ahead of GE and CFM.It also offers high technics developed by



SHOP VISIT ESTIMATIONS - DECLINING NARROWBODY ENGINES

Year CFM56-3 JT8D-200 PW2000 RB211-535

2016 245 163 110 72

2017 224 138 89 72

2018 212 128 88 94

2019 162 129 94 107

2020 120 78 83 99

2021 91 48 64 57

2022 99 14 55 27

Source: estimations and forecasts provided by ICF

its repair network such as plasma deposit,3D printing (LMD) or laser drilling.

IAI Bedek undertakes about 90CFM56 SVs per year, of which 25 are forthe CFM56-3, while 50 are for CFM56-5B engines. Last, IAI performs an averageof 15 CFM56-7B SVs each year. IAI hasseen a marked increase in CFM56 SVsover the past few years, and expects toperform 110-130 SVs per year over thenext five years. “For widebodies, IAIperforms a large percentage of work forthe OEMs, including being appointed atDP by Pratt & Whitney for JT9D seriesengines, while for narrowbodies most ofthe engines are being overhauled for theairlines,” explains Rozman. “We expectthe percentage of work performeddirectly for the OEMs to rise in thecoming years.” While IAI performs acomprehensive in-house OEM portfoliocovering the main CFM56 enginemodules, some blade and vane repair isOEM-contracted. It is able, however, toprovide DER repairs for CFM engines asand when required by customers.

Aero Norway AS is an MRO that isactively focused on CFM56 maintenance.Having acquired the Norway EngineCentre from PW in 2013, the facility isgeared specifically toward MRO servicesfor the engine family. Aero Norway sees ahigh volume of SVs for each series. Itperformed 58 CFM56-3 SVs in 2016, andit expects a similar number this year. Itexpects about 17 CFM56-5B and -7B SVsto be carried out in 2017.

Aero Norway sees an equal dividebetween light workscopes, such asmodular inspections; and major repairsand overhauls for the engine. While it canprovide turbine, compressor, andcombustor repairs in-house, certainrepairs for blades, vanes and casings areundertaken by the OEM.

A business unit of TAP Portugal, TAPMaintenance and Engineering (TAPM&E) holds no OEM-brandedagreements, yet undertakes a significantamount of CFM56-3/-5 and -7B engineoverhaul and inspection work. 75% of itsMRO activity is third-party MRO work,

while the remainder relates to TAPPortugal’s fleet. Since 2014, it hasperformed 25 CFM56-3 SVs, 64 -5B SVs,and 14 -7B SVs. Most of these haveinvolved major repair, performancerestoration and overhaul workscopes.TAP M&E provides in-house parts repairacross the CFM56-3/-5 and -7B series,although it does sub-contract certain LLPand specialist repairs, including repairs tothe fan disk, HPT disk, front rotatingseal, and to specific parts of the fan blade,bearing and turbine blade.

FL Technics provides a range ofengine repairs for the CFM56-3, -5 and -7B series, and remains dynamic in themature engine market. In addition toOEM, DER and PMA provisions, FLTechnics manages its own inventory ofengines for pool support. This inventoryincludes 10 CFM56-3 engines. Via thisservice it also offers engine lease, materialtrading, exchange and sale services to itsCFM56-3 customers. It can also providemodular exchange services for theCFM56-3 series. Last year FL Technicsundertook 20 CFM56-3 SVs, three -5A/-5B SVs, and a -7B visit.

“At FL Technics, SVs make up 40%of all cases,” explains Asta Albrichte,head of engines and componentsmanagement at FL Technics. “In themature engine market, workscopesdepend on the demand for low buildstandard and cost optimisation, inaddition to other factors such as OEMsupport in authorising special procedures.This includes allowing Quick Turnactivities in certain cases.

“Major repairs account for 25% ofthe projects, while light inspections takeup 20%,” continues Albrichte. “Thelatter is especially the case in the CFM56-3 market, since there is high demand forre-delivery services, engine model changeservices to fit specific aircraft, firedetection system change, pre-purchaseinspections, QEC change, andmodification services. The remaining15% are overhauls/LLP changes.”

While Albrichte explains that it is rarefor OEMs to order work from third-party

MROs like FL Technics, typically 10-15% of all its engine teardown activity iscompleted in cooperation with themanufacturer. In such a case, FL Technicspre-agrees surplus material with theOEM. OEM surplus inventory isreplenished by pre-checked materials withknown vendors at the same time,ensuring a smooth process and stablesales impact for FL Technics.

Under its Part 145 approval, FLTechnics can complete standard works inaccordance with aircraft maintenancemanuals, including, but not limited to,NDT (including full borescope); quickengine change (QEC); and LRUcheck/swap/changes; engine re-configuration; waterwash; engine leaktests; engine MAP runs; engineremoval/installation; and preparation forshipment for the CFM56-5A, -5B, -3 and-7B. It can also provide these services forthe V2500-A5 series.

Within its Part M approval, the MROcan provide further services includingAD, SB and LLP tracking, and enginecondition trend monitoring (ECTM) forthe PW2000, RB211-535E4, CFM56-3,CFM56-5A, CFM56-5B, CFM56-7B, andV2500-A1/A5.

“We often see that due to the costsaving trends in mature engine types, it isuseful to have the whole LPT/HPTmodules or stator assemblies certified andready for installation,” adds Albrichte.“This is often in demand, because itallows quick turnaround times (TAT) forcustomers, and minimises costs whilelimiting scrap rates and workscopeextensions. This is typical for theCFM56-3 HPT stator module, LPTmodule, LPT rotor-stator, LPT NGVsstage 1 module, and AGB module.

Due to its involvement with theCFM56-3, FL Technics sees a steadydemand for DER repairs and PMA.

“During engine SVs where DERrepairs are allowed, and duringteardowns that are traced historically toPMA/DER, FL Technics actively usesDER repairs and also works closely withDER vendors for second-chance



inspections,” says Albrichte. “For enginessuch as the JT8D, CF6, CF34-3 andCFM56-3, where numerous technologiesfor DER/PMA were historicallydeveloped (including DER/PMA solutionfor turbine and compressor blades,shrouds and vanes) a DER repair issometimes the only cost-effectivesolution, especially when the engine hasalready undergone DER and PMA SVs.

“This is managed on a case-by-casebasis,” continues Albrichte. “In ourexperience, using DER and PMA formature engines is sometimes the bestoption, even if the engine has OEM-traced airfoils.”

Iberia has been overhauling CFM56engines since 1992. It now providesMRO services for the CFM56-5A,-5Band -7B series, undertaking 85 SVs in2016. Much like its capabilities for theV2500, Iberia can perform hi-tech repairsfor each module of the CFM56-5 and -7series. 80% of its SV volume fornarrowbody engines is for overhauls andLLP exchange work.

Singapore Technologies AerospaceLtd (ST Aerospace) has the capability toservice the full CFM56 engine series. ItsJV with the Xiamen Aviation Industry, STAerospace Technologies (Xiamen)Company Limited (STATCO), is able toperform MRO services for CFM56-7Bengines.

On average, ST Aerospace performsMRO services for 150 CFM56 SVs ayear. “We have a licensing agreementwith CFM International that allows us toprovide extensive maintenance and repairservices for the CFM56-3/-5B/-7B seriesengines,” says Choo Han Khoon,executive vice president, Engine TotalSupport at ST Aerospace. “Ouragreement with the OEM is based on a

win-win arrangement that includesinvestment in machinery.”

While all OEM proprietary repairssuch as LPC, HPC, HPT and LPT bladesand vanes are again contracted back tothe OEM network of shops, STAerospace retains an extensive in-houseparts repair capability for the CFM56family. It is able to perform OEM-endorsed hi-tech repairs across all majormodules for CFM56 engines.

SR Technics has two active locationsthat provide services for the CFM56-5and -7B series. Its Zurich facilityperforms primary MRO services, whileSR Technics Airfoil Services Ltd in Corkdoes hi-tech repairs on various partsincluding LPT airfoils.

SR Technics is approved for severalOEM source controlled repairs. “Wehave more than 84% in-house repaircapabilities, including ESM repairs andOEM source controlled repairs for theCFM56-5 and -7B series,” says RobertoFurlan, vice president of engine servicesengineering at SR Technics. The companyis an authorised CFM and PW MROengine shop, and performs about 200 SVsper year. While SR Technics’ hi-techrepair capabilities include plasma andHVOF coatings, laser-drilling, -weldingand cladding, electron-beam (EB) weldingand LPT airfoil repairs, applied acrosseach main CFM56 engine module, it alsosub-contracts HPC blade repair and HPTblades and vanes repairs back to theOEM.

As established in previous AircraftCommerce surveys (see Narrowbodyengine hi-tech & specialist parts repairproviders, Aircraft Commerce,August/September 2015, page 62), PASTechnologies also provides repair servicesfor the CFM56-7B and -7BE series. Its

portfolio includes in-house OEM hi-techrepairs for the LPT Case, HPC rear case,LPT stationary outer airseals, HPT aftouter airseals, HPT shroud hangars,compressor stator shrouds, HPC vanesectors, and fan outlet guide vanes.

Rolls-Royce RB211-535 The RB211-535 has a fan diameter of

74.1 inches, a six-stage intermediatepressure compressor (IPC), a six-stageHPC, a single-stage high pressure turbine(HPT), a single-stage intermediatepressure turbine (IPT), and a three-stagelow pressure turbine (LPT). The -535E4entered service in 1984, and powers anageing and decreasing 757-200 and -300fleet.

The current market According to Rolls-Royce, there are

448 RB211-equipped 757s in activeservice as of February 2017. There is alsoa significant number of spare engines inairline use, giving a total RB211-535active fleet of about 1,000 engines.

Whereas the 2014 survey showed that150 SVs were performed for the RB211-535, ICF has estimated demand for about70 SVs performed in 2016. This activityis forecast to stabilise for 2017. ICFpredicts that SVs will slightly increase to100 visits per annum until 2021, whenactivity will then steeply decline to abouthalf this number. ICF estimates that 27RB211-535 SVs will take place in 2022.

Some big shops have closed in recentyears, which has removed some avenuesfor RB21-535 MRO services. Texas AeroEngine Services LLC (TAESL), which wasa JV between American Airlines and RR,closed in early 2016, leading someproviders to turn to Rolls-Royce’s Derbylocation instead.

According to Rolls-Royce, the onlyRolls-Royce owned maintenance shopcurrently with RB211-535 capability isEngine Overhaul Services, Derby, UK. Itsother narrowbody locations are Rolls-Royce Canada in Montreal; and Rolls-Royce Inchinnan, Glasgow, UK. Theseprovide services for the AE3007A andV2500 respectively. Each of these shopshas some specialist repair capabilities forits own engines, but most Rolls-Roycerepair work is contracted to third-partysuppliers. Meanwhile, none of the Rolls-Royce JVs (N3EOS, SAESL and HAESL)has any narrowbody engine overhaul



As part of the IAE consortium, MTU performsMRO for the V2500. SVs are carried out at itsZhuhai and Hannover facilities, while ASSBprovides LPT and HPC airfoil repairs as needed.

capability. SAESL, however, has specialistnozzle guide vane and compressor statorrepair capability for the RB211-535.TRT, Derby, UK which is a 50:50 JVbetween RR and Chromalloy, repairsRB211-535 turbine blades in addition toNGVs.

Most RB211-535 SVs are conductedeither by Iberia Maintenance, Madrid orAmeco Beijing. These two businesses arefully independent shops that are able toperform SVs for engines covered byRolls-Royce TotalCare and SelectCareservice contracts. Rolls-Royce explainsthat there are no RB211-535 repairs thatonly it, as the OEM, can perform.

A wide range of companies is able toperform RB211-535 repairs. Otherindependent repair facilities includeStandard Aero, and various Chromalloysites such as: Tilburg (Netherlands);Somercotes (UK); Windsor (Connecticut);Newnan (Georgia); Dallas (Texas); SanAntonio (Texas); and Guaymas (Mexico).

MRO & specialist repairs Iberia Maintenance is the largest

independent MRO shop for the RB211-535 series. It performed 48 shop visits forthe -535 in 2016. The MRO shopconsists of five hangars, capable ofaccommodating 15 narrowbody andwidebody positions. Hi-tech repairservices that Iberia Maintenance canprovide for the RB211-535 series in-house includes CNC shot peening, lasergrinding, HVOF plasma spraying, andHPC airfoil repairs such as laser weldingand robotic machining.

JT8D-200 The JT8D family includes older model

engines that power the DC-9, 737-200and 727-200 along with later JT8D-217/219 series engines that power theMD-80 fleet.

The JT8D-217 series is installed on 86in-service MD-80s, while the -219 seriespowers 277 aircraft. The -200 also has asingle stage LPT module, a single- stagehigh-pressure turbine (HPT) and the samelow-pressure compressor (LPC) boosteras its JT8D baby predecessor.

The current market While Aircraft Commerce established

that about 300 SVs took place during2014, the JT8D-200 is now in significantdecline. ICF estimates that about 160 SVs

took place in 2016, and this is expectedto fall further to 140 visits during 2017.By 2026, this is expected to decrease toabout 20 events. These visits are likely toderive from business in developingcountries that may continue to prolongthe serviceable life of this sunset engine.

Pratt & Whitney continues to fullysupport JT8D fleet operations from asafety, technical and material perspective.The company maintains two designatedservice providers (DSPs) that providemaintenance services for the JT8D-200fleet.

MRO & specialist repairs MRO providers offering services for

the JT8D-200 series include; DeltaTechOps, Aerothrust, FJ Turbine Power,HAECO Americas, ITR, Turbine EngineCentre and Summit Aviation.

PW2000 The PW2000 also powers the 757-

200 and -300 fleets, entering service inthe mid-eighties. The PW2000 consists ofa two-shaft turbofan engine, with a 78.5-inch-wide fan, a four-stage LPC, 12-stageHPC, two-stage HPT and five-stage LPT.The main difference to the RB211-535 isthe two stage HPT, where the -535 issingle stage. It powers all models of the757 family, alongside various militaryaircraft. The engine is overhauled at PW’sColumbus Engine Centre.

The PW2000 engine entered revenueservice in 1984 as the first commercialengine with full authority digital enginecontrol (FADEC) technology. PW laterintroduced a revised version of thePW2000, with reduced temperatureconfiguration (RTC) in 1994.

The current market Although it is an ageing engine that is

declining in activity, PW2000maintenance demand has plateaued inrecent years. In 2014 100-130 SVs wereanticipated, while ICF’s market summaryhas estimated demand for 110 SVs for thePW2000 in 2016. This is expected toreach a gradual decline to about 55annual SVs by 2022.

Before the PW1000G entered service,the PW2000 series and V2500 were theactive narrowbody products offered byPW. The repair facilities owned by PWprovide repair services for all PW models,and are mainly located in Asia andAmerica. These are:

l Asian Compressor TechnicalServices, Taiwan: Its repair capabilitiesfocus on the engine compressors, stators,shrouds and HPC seals.

l Component Aerospace Singapore:CAS’s repair services extend to thecombustion chambers, fuel nozzles, andfuel NGVs.

l Connecticut Rotating Parts, USA:repair focus is on PW2000 and V2500major rotating parts.

l Connecticut Stators andComponents, USA: a sister facilityspecialising in HPC stator andhoneycomb seal repair.

l Dallas Airfoil Repair Operations,USA: components in the exhaust gas pathform the repair basis here, includingHPT/LPT blades and vanes, alongsideairfoil coatings.

l International Aerospace Tubes,Singapore: repairs tubes, ducts andmanifolds.

l North Berwick Part RepairOperations, USA: capabilities includeairseals, shrouds, ducts, vane supports



AFI KLM E&M develops various engine repairsin-house via its repair subsidiaries, such asCRMA. AFI KLM E&M is able to perform repairson all modules for the CFM56-5 and -7 series.

and bearing components. l Pratt & Whitney Auto Air, USA:

repair of thrust reversers, nacellecomponents and composites.

l Pratt & Whitney ComponentSolutions, Singapore: PW’s facility in Asiafocuses on stators, variable vanes, ducts,airseals, split cases.

l Repair Supplier Logistics, USA:provides repair logistics.

l Turbine Overhaul Services,Singapore: HPC, HPT and LPT airfoils,and transition ducts.

l 1-Source Aero, Greece: main focusis accessory repair.

PW2000 engine parts repairs are alsoperformed at the PW engine overhaulfacility Columbus Engine Centre,Columbus, Georgia, USA.

MRO & specialist repairs MTU Aero Engines both developed

and designed critical elements of thePW2000. As such, it holds more than a21% stake in the PW2000 and createdrepair solutions for it. MTUMaintenance, Hannover offers fullmodule and parts repair capability for thePW2000, including: the fan, LPC andHPC airfoils, the combustor, specialisedrepairs for the HPT, and LPT airfoils,cases, gearbox, and accessories. Itperforms about 25 shop visits per year.

Delta’s designated maintenancefacility, Delta Tech Ops, is headquarteredin Atlanta. As previously highlighted (seeNarrowbody engine hi-tech & specialistparts repair providers, AircraftCommerce, August/September 2015, page62) it provides modification, repair andoverhaul, and full restoration across all

engine modules for the PW2000. It alsocarries out performance restoration tocertain components, including those usedin the gas path. Delta Tech Ops canperform repairs for the fan, bearinghousings, LPT seal segments, HPT shroudhangers, liners, engine mounts, HPCairfoils, LPC airfoils, combustor, frames,gearboxes and cases, among others.

Delta uses a wide range of OEM-endorsed hi-tech repair techniques, suchas plasma spray, anti-friction and thermalbarrier coatings, laser welding, tipwelding, electron beam welding, lasercladding, heat treatment, high pressurewaterjet stripping, high-velocity oxygenfuel (HVOF) coating, computernumerical control (CNC) shot-peening,and silver-, chrome-, and nickel-platingcapability. As and when DER repairs arerequested or PMA is used, uniquestripping, welding, coating andmachining techniques can all be applied.

Summary It is clear that a cultural shift is in

progress within engine MROs,encouraging closer alliances with theOEMs so that MRO shops can optimisetheir presence in the aftermarket. “OEM-aligned shops that use OEM hardware,and do not use PMA parts or DERrepairs, are likely to maintainrelationships with the OEMs in thefuture,” says Hankins. “While demandfor CFM capacity will continue into2030, big MROs often struggle to caterfor a range of workscopes, soindependents are probably better placedto offer this service for maturing engines.

“Flexibility in offering creative ways

of keeping -5B/-7B engines flying, such asshops offering core exchanges andmodule swaps, will be attractive tooperators as the asset values start todrop,” continues Hankins.

Airline-owned MRO subsidiaries,understandably have leverage with OEMsdue to aircraft orders. These businessestherefore have an advantage overindependent shops, in addition tocompanies that manufacture and designelements for new engines. Hankins alsothinks that independent shops will beable to take advantage of new-generationengine MRO activity, however. “Thehuge increase in numbers of LEAP andGTF engines, together with the currentCFMI portfolio and the trend forworldwide growth mean that demandwill stay high, so significant opportunitieswill remain for airline and non-airlinenon-OEM shops,” adds Hankins.

“In time, market pressure to increasecapacity might force OEMs to be moreopen to relaxing their requirements. Thekey factor for MRO providers will be thewillingness and ability to cover the costsrequired to be OEM-aligned, so that theycan be considered as an offload avenuefor the OEM shops,” says Hankins.

“There is still a future for these legacyengine types, with another 20 years or soof SV activity. Workscopes will change inthe last 10 years of these engines’ lifefrom performance restorations andoverhauls to repair activity. I anticipatethat OEMs will not want to get asinvolved in repair workscopes becausethe LEAP will be starting to thrive, sothere will be significant opportunity forMRO shops to get involved in repairworkscopes. The question is whether thiswill last as long as older engines have. Itwill also hinge upon shops’ willingness tobe aligned to OEMs,” concludesHankins.

“OEMs will need partners to copewith the expected SV volumes,” confirmsOckerman. “Few new aircraftacquisitions between airlines and OEMsare signed without an OEM maintenancecontract nowadays, so the OEMultimately becomes the customer of theengine shops in time.”



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SR Technics performs maintenance and repair forthe CFM56-5 and -7 series. Its Cork facility, SRTechnics Airfoils Services Ltd, performs hi-techparts repairs on LPT blades and vanes.

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