SINGAPORE: IAE bullish on Asian demand for V2500

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International Aero Engines (IAE) expects demand from the Asia-Pacific region to drive its bid to win more than half of the remaining engine selections to be made for current-model Airbus A320-family aircraft, before production fully transitions to the re-engined A320neo.

The A320 family is offered with a choice of IAE V2500 or CFM International CFM56 turbofans, but IAE does not offer an engine for the A320neo, which can be equipped with the CFM Leap-1A or Pratt & Whitney (P&W) PW1100G geared turbofan.

IAE is, meanwhile, being restructured after Rolls-Royce agreed to sell its minority stake in the venture to P&W, subject to regulatory approval.

"Asia-Pacific is very large in terms of our scope," said IAE president Ian Aitken.

"Today, if you look at the fleet, we have 45% in Asia-Pacific, 30% in the Americas and 25% in Europe, so it's our biggest region.

"We've got 74 customers in the Asia-Pacific region and we expect large growth there going forwards. Last year we sold 500 engines - which is over a year's production - and of that, 63% was in Asia-Pacific."

Around half of IAE's 2011 deliveries - which totalled 187 aircraft - were to Asia, and this is expected to grow to 60% in 2012, said Aitken. IAE typically produces 400-500 engines annually.

"We're bigger than the competition in the region. We like being there because it's very active and GDPs are up. We're doing very well in Asia-Pacific and we want to maintain that," he said.

IAE announced at the show that it has created "V-Services" with the aim of expanding the scope of its fleet-hour service agreements with operators.

"V-Services defines our expanded portfolio of aftermarket service offerings beyond our traditional fleet-hour agreements," said Chris Davie, IAE senior vice-president of aftermarket and commercial.

"We have been very successful with these long-term service agreements, with more than 60% of the V2500-A5 fleet currently under contract, and now need to meet a growing demand for more variety from our customers," he added.

In addition to fleet-hour agreements, V-Services will offer fixed price maintenance, "lessor direct" options and spare engine solutions, said IAE.