IAEA 2nd Aircraft Engine World China Summit 101812

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

http://www.linkedin.com/e/vgh/1613297/

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.org 2

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


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


Supply Chain Board of Advisors TBD TBD TBD

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


http://career.turbineengine.org/

http://www.turbineengine.org/events

Professional Development Programs


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

http://daytonabeach.erau.edu/cob/degrees-programs/professional-development/index.html





Fan Drive System

Gearbox on LEAP’s Architecture? Open Rotor?


Fan Size trend

FAN DIA , Nacelle DIA , Engine Weight , Landing Gear FOD , Transportation Cost , Maintenance Cost


Fan - Propulsor Architecture

Success Story: GE90 Implementation Result: Fundamentally Different Fleet Management


Higher T4 & Fan DIA = CMC & TiAl


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


$22B+ Global MRO Market OEMRO


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

Cost Of Ownership


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

Modular Intermix Design Management

TUI’s -7B 50K First Run – Legacy Architecture Design Challenge: Tracking time/cycles/config on each module


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


THANK YOU!

QUESTIONS?

Email: [email protected] Telephone: +1 (310) 266-5514 IAEA on @IAEA1, International Aircraft Engine Association


mailto:[email protected]




Documents

IAEA 2nd Aircraft Engine World China Summit 101812