IAE International Aero Engines and Etihad Airways today signed an Aftermarket Services Agreement covering the airline’s existing fleet of V2500s. The contract covers 30 engines, including spares, that power 14 Airbus A320 Family aircraft currently in service and is valued at up to $200 million.
As part of this agreement, all of these engines will be upgraded to the latest
V2500 SelectOne™ build standard during their scheduled overhauls. This will allow Etihad to benefit from a reduction in fuel burn and increased time on wing, resulting in much lower operating costs.
James Hogan, Chief Executive Officer of Etihad Airways, said: “The decision to incorporate the V2500 SelectOne™ upgrade is a natural progression in our relationship with IAE. Transferring engine maintenance responsibility to IAE allows us to focus upon our core strengths. The engine deal will deliver significant cost benefits for Etihad, especially in terms of lower fuel consumption, reliability and increased flying time between maintenance overhauls.”
IAE President and CEO, Jon Beatty added: “As the only engine manufacturer to offer a complete engine management service on the A320 family, we give our customers the option to transfer maintenance risk so they can concentrate on their core business. Etihad’s decision to extend its aftermarket coverage to its existing fleet demonstrates that customers recognize the value this brings to their operation.”
Earlier this year, Etihad selected V2500 SelectOne™ for its new fleet of 20 A320-family aircraft, and also opted for a long term aftermarket agreement to cover these engines, in a deal worth
$575 million.
The V2500 is available in seven different thrust settings, from 22,000 to 33,000lb, to power the Airbus A319, A320 and A321 Family of aircraft as well as the Airbus Corporate Jetliner. There are more than 5,500 V2500s in service or on firm order with more than 180 customers around the world.
The V2500 SelectOne™ build standard delivers an additional one percent fuel burn advantage, along with a corresponding reduction in CO2 emissions. It improves time-on-wing by up to 20 percent, and will be compliant with the most stringent CAEP/6 NOx standards. It entered service on time in October 2008.
IAE is a multinational aero engine consortium whose shareholders comprise of Pratt & Whitney (NYSE: UTX), Rolls-Royce (RR.L.), Japanese Aero Engines Corporation and MTU Aero Engines.
