This document provides an overview of the 2nd Annual Aircraft Engine World China Summit held in Shanghai on October 18-19, 2012. It summarizes the current and projected growth of the global commercial aircraft engine market. It also outlines the vision and activities of the International Aircraft Engine Association (IAEA), including professional development programs, an aircraft engine career website, and proposed programs in collaboration with academic institutions.
International Aircraft Engine Association Charter Feb 6 2012
IAEA 2nd Aircraft Engine World China Summit 101812
1. 2nd Annual Aircraft Engine World China Summit
Shanghai, October 18-19, 2012
Dr. Hooman Rezaei
IAEA Founder & President
@IAEA1, : International Aircraft Engine Association
www.turbineengine.org
2. Commercial Engine Industry Overview
World Regions
Africa 2,045 4%
Asia Pacific 6,634 15%
China 3,599 8%
Eastern Europe 2,115 5%
India 770 2%
South America 2,965 7%
Middle East 2,456 5%
North America 14,951 33%
Western Europe 9,728 21%
Total (2012) 45,263
Total (2022) 62,544 +38%
OEMs 2012 2022
CFMI 16,658 26,951
GE Aviation 9,860 13,085
Rolls Royce 6,134 7,775
Pratt & Whitney 7,441 7,638
IAE 4,118 5,405
EA = GE + P&W 120 824
Power Jet 8 592
Honeywell 924 276
ACAE - TBD
CFMI Fleet Largest Share of 37% , +15
RR’s Fleet Overtake P&W’s Fleet by 2022
Source Fleet Data: Ascend
An Industry With 150,000+ Professionals
www.turbineengine.org2
3. Association’s Vision
Founded Jan 2012 - 7000+ Social Media Professional Members
Platform to Promote Global Collaboration Among:
Manufacturers Lessors & Financiers
Operators Maintenance Providers
Consulting Services Providers Academic Institutions
Comprehensive & Standard Industry Wide Solutions Such As:
Common MRO/Trade Contracts Lease Return/Non-incident
Global Ecommerce Platform – Wikipedia & Ebay of Aero Engine Industry
Define Industry’s Academic and Professional Development Curriculums
Develop Exclusive Publications & Core Engine Event Content Globally
www.turbineengine.org3
4. Board of Directors
Lease & Finance
Board of Advisors
Ray Sisson – President & CEO, AWAS
Dr. Hooman Rezaei – Founder & President, IAEA
Jon Sharp – President & CEO, ELFC
Dave Johnson – SVP, Willis Lease Finance
Mark Drechsler – SVP, Bank of America Leasing
MRO
Board of Advisors
Rod Blake – VP, American Airlines TAESL
Frank Walschot – SVP, SR Technics
Mark Mounsey – VP, United Airlines
OEM
Board of Advisors
TBD
TBD
TBD
Consulting
Board of Advisors
Academia
Board of Advisors
Dean Maj Mirmirani – Embry Riddle
TBD
TBD
Media & Events
Board of Advisors
Phil Seymour – President & COO, IBA
TBD
TBD
Stephen Bray, EVP UBM Aviation
TBD
TBD
Association’s Boards
www.turbineengine.org4
Supply Chain
Board of Advisors
TBD
TBD
TBD
5. Launched First Global Aircraft Engine Exclusive Career Site
Partnership with Zylog Systems (Canada) LTD
http://career.turbineengine.org
Confidential, Retained Search, Public Job Postings, Cloud based
Manpower solution across spectrums
C-Level, Executives, Managers, Engineers, Financiers, Mechanics
Airlines, OEMs, MRO, Lessors, Academia, Supply Chain
Proposed MS in Aircraft Engine Engineering & Management
Collaboration with Embry Riddle
Global Aircraft Engine Industry Integrated and Sponsored Curriculum
Balanced Engineering Sciences & Management Skills Curriculum
Generate Interest in Aero Engines & Eliminate Excessive Turnovers
Quarterly Aircraft Engine Webinars
Collaboration with Airfinance Journal
Update community with latest development in the industry
www.turbineengine.org/events for schedule
Phase I Execution
www.turbineengine.org5
6. Professional Development Programs
www.turbineengine.org6
Managing Airlines in Challenging Environments
Three-day Short Course in Organized by Embry Riddle
February 2013 @ Daytona Beach Campus
http://daytonabeach.erau.edu/cob/degrees-programs/professional-development/index.html
Course Content
Air Transport Trend and Outlook
Airline Pricing & Revenue Management
Crew resource management
Labor Negotiation
Network Development
Fleet Planning
Airline Finance/Fuel Hedge
Aviation Insurance
Airline Operation Simulation
Irregular Operations Management
Air Cargo Operations & Hub Strategies
Cargo Revenue Management
8. Fan Size trend
FAN DIA , Nacelle DIA , Engine Weight , Landing Gear
FOD , Transportation Cost , Maintenance Cost
www.turbineengine.org8
9. Fan - Propulsor Architecture
Success Story: GE90 Implementation
Result: Fundamentally Different Fleet Management
www.turbineengine.org9
10. Higher T4 & Fan DIA = CMC & TiAl
www.turbineengine.org10
11. Manufacturing Technology:
Direct Metal Laser Sintering (DMLS)
• Cobalt Chromium
• Inconel 718
• Inconel 625
• Titanium-6Al-4V
• Titanium-6Al-4V ELI
• Aluminum 6061-T6
• Stainless 316L
• Stainless 17-4PH
• EOS Stainless GP1
• EOS Stainless PH1
• EOS Aluminum AlSi10Mg
• EOS Maraging Steel MS1
• EOS Direct Metal 20
Rapid Prototyping & Smaller Parts
Challenge: Expensive Powder Supply
www.turbineengine.org11
12. $22B+ Global MRO Market OEMRO
www.turbineengine.org12
Airline Shop OEM Shop Independent
LHT
5A/5B/5C/7
Snecma
all models
Finnair
5B/5C
SR
Technics
5B/5C/7
TAP
3/5B/5C
Iberia
5A/5B/5C
GE Strothers
all models
Air France/KLM
3/5A/5B/5C/7
China
Airlines
5B/5C/7
GE Wales
all models
NEC
3/5B/7
MTU
Zhuhai
3/5B/7
Alitalia
5B
ACTS
5A/5B/5C
GE Celma
3/5A/5B/5C
AeroThrust
3/7
American
7
CEES
3
Delta
Tech Ops
3/7
ESA
5C
GAMCO
5A
GE
Malaysia
3
GMF
3
IAI
3/7
IHI
3/5A
LTAI
3/7
MTU
Hannover
3/7
JTS
3
Snecma
Morocco
3/7
Snecma
Sichuan
5B/7
STA
3/7
Turkish
3/5C/7
Timco
3
United
3
Ameco
3
Snecma
Brussels
3
ANA
5A
PIA
3
GE Varig
3
Avio
3
Olympic
5C
KAL
7
JAT
3
SAMES
3/7
MTU Vancouver
3
7000+ GTF and LEAP Sold – Non Available For 3rd Party
PBH Coverage – Source TEAMSAI
CFMI: ~35% Installed
Trent: ~90% Installed
V2500: ~43% Installed
V2500: ~ 80% Future Deliveries
13. Cost Of Ownership
www.turbineengine.org13
Majority Future Fleet Lessors Owned
Fuel Consumption, Noise, Emission and $/Flight Hour
EIS Part Out
$Z
TSN = 0 Hr TSN = X Hr
SV1
$Y1
SV2
$Y2
SV3
$Y3
$/Flight Hour =
$𝑌1+$𝑌2+$𝑌3
𝑋
14. Modular Intermix Design Management
TUI’s -7B 50K First Run – Legacy Architecture Design
Challenge: Tracking time/cycles/config on each module
www.turbineengine.org14
15. Fleet utilization & module hard time tracking – Excel spreadsheet or modern live tracking systems
Health monitoring – EGT and Condition considerations, ACARS utilization pros & cons
Removal & Staggering forecast – LLP expiration, AD/SB, Cost of ownership analysis, UERs
Lease vs. owned fleet – lease return considerations including work scope and installation
Time & Material vs. Power-By-Hour – Pros & Cons with respect to the fleet condition & ownership
Service Provider Selection – Capability for true Nose-To-Tail coverage airframe+ engine + APUs
Industry standard metrics to measure service providers – Performance, Repair & Part Supply Chain
Contract interpretation and negotiations – Standard language & coverage comparison template
What definition zeros the clock on engine modules? Changes in work scope definitions & req’ts
Module swap vs. own module complete teardown concept
Removal lease engine support – Lessor’s lease pool vs. MRO lease supply pros & cons
PMA & DER Incorporation - True Engine Concept, Return to OEM Configuration at redelivery time
PMA & DER’s System Impact – Time for Reliability Data & 10 year cost of ownership improvement?
Repair vs. replace (new or serviceable) decisions - Invoice assessment, next shop visit decisions
Test cell modular performance expectation vs. work scope performed – Expected on wing time
OEM’s role in the process – MRO player, consultant, reference, part and repair supplier, …
Design For Optimum MRO
www.turbineengine.org15