Jacques Chausse, GE Aviation's marketing manager of services, illustrates: "One customer says, 'I'm leasing this engine for three years, so I want a solution that's going to give me a return within three years.' Other customers are cash-strapped and have a different view. Another customer says, 'I'm going to keep this engine for 15 years.'" Chausse said engine aftermarket companies must provide solutions for each different business model, whether it's short or long term. "You need to find out what they want at the end of the day."

Take the CFM56-3 advanced upgrade kit, which CFM pares down into a partial kit focused on compressor improvements if operators primarily are concerned with fuel savings, said Chausse. But if operators want fuel savings, better durability and longer time on wing, CFM adds three-dimensional, high-pressure compressor aerodynamics and new high-pressure turbine hardware, too. Chausse said about 20% of customers have purchased the full CFM56-3 upgrade kit that is designed to improve specific fuel consumption up to 1.6% and increase exhaust gas temperature margins up to 25 degrees, which should reduce maintenance costs and lead to longer on-wing time.

British Airways wants the whole package, as evidenced by the CFM announcement on Nov. 17 that the airline ordered 20 CFM56-3 advanced upgrade kits valued at $33 million for its Boeing 737 Classic fleet. British Airways should save about 280,000 gallons of fuel annually after the upgrade, which will start occurring early next year. (The order could grow to as many as 44 of the engine upgrade kits.)

When it comes to performance requests from operators, engine MROs agree that most requests they receive relate to fuel burn. Fuel prices have decreased since their peak earlier this year, but the quest to achieve the best operating costs tops operators' concerns.

The reason is simple. "We are seeing more of a short-term focus on costs and expenditures. People are thinking about just surviving until next month," said an Iberia Maintenance spokesman.

To get them there, engine MROs and OEMs are focusing on material costs, including creating more repairs; customized workscopes; on-wing services including engine washing; trend monitoring, prognostics and diagnostic services; and technology insertions, which include modifications and upgrades. (Because almost every engine has an upgrade available, we are not going to cover them in this space.)

One common theme is "operators ideally look for ways to maintain reliability, minimize risk to their operation, maximize fuel burn efficiency and maximize time on wing," said Mark Kerr, head of marketing services-civil for Rolls-Royce.

And the other is, "get an engine out of the shop as inexpensively as possible without comprising the quality," said Jan Butzmann, deputy manager for Ameco Beijing's engine services subdivision.

Material Costs