Technical issues with the Pratt & Whitney PW1100G engine are causing a ripple effect in the Asia-Pacific airlines, reevaluating their growth plans, and aerospace suppliers are bracing for financial hits. One such supplier, Japan-based IHI, is already warning of an impact on its operating income for the financial year ending March 31, 2024.
Financial Uncertainties for IHI
IHI holds a 15% share in the PW1100G engine program, while the majority 51% share is held by Pratt & Whitney’s parent company, RTX. IHI stated that it’s hard to gauge the exact impact on their financial forecast for the current fiscal year. They plan to make another announcement as soon as they have clearer information. In the meantime, the company is working hard to minimize the fallout from the engine issues.
Airlines Adjust Their Plans
On September 11, RTX announced that between now and 2026, around 600-700 engines that power the Airbus A320neo family must be removed and inspected. The inspections are for defective high-pressure turbine and compressor discs. This problem is expected to cost RTX more than $3 billion and involves a defect in the powdered metal used to manufacture certain engine parts.
Several airlines in the Asia-Pacific region, including Air New Zealand and Scoot, have already warned of near-term operational disruptions. Cebu Pacific, a low-cost operator whose A320neo fleet uses PW1100G engines, announced on September 15 that it would revise its fleet growth rate for 2024 downward. The airline expects a number of its aircraft to be impacted, although there is no immediate effect on operations. Cebu Pacific is also taking steps to manage supply chain and operational challenges proactively.
More Airlines to Feel the Impact
Air New Zealand is planning “significant” adjustments to its schedules in the coming months due to additional engine shop visits. The airline has 16 A320neo and A321neo aircraft powered by PW1100G engines in its fleet. Low-cost operator Scoot also expects to adjust its schedules, as four engines in its fleet are affected by the latest technical issues. Other airlines like China Airlines and All Nippon Airways are still assessing the situation and haven’t made any significant operational changes yet.
Technical issues with the Pratt & Whitney PW1100G engine are causing both financial and operational challenges for aerospace suppliers and airlines in the Asia-Pacific region. Companies are still assessing the full impact, but it’s clear that adjustments and changes are on the horizon.
Source: FlightGlobal
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