Engine Maker Thinks Airbus Should Build An Entirely New Aircraft

Both Airbus and Boeing have made noises over the last year about re-engining their popular single-aisle mid-range airliners ... the A320 for Airbus and the 737 for Boeing.

But Rolls-Royce, the primary engine supplier for the A320, doesn't think that's the best course of action for Airbus, saying an entirely new airplane design would take greater advantage of improvements in efficiency. The Wall Street Journal reports that R-R's vice president for strategic marketing said there is "no net benefit" to hanging newer engines on the wings of A320's set for delivery beginning in 2015. "We can't make the business case work," he told the paper.

When Airbus CEO Tom Enders talked about the re-engining plan at Farnborough, he said the business case was "very convincing."

A320 Production Line

The paper reports that both GE and Pratt & Whitney have told Airbus they can offer new engines for the A320. The current powerplants cost about $10 million per airplane, and then generates a revenue stream for Rolls-Royce in maintenance and parts that can exceed that initial cost by several times over the life of the aircraft.

Airbus has said that the improvements in materials and technology that would justify a clean-sheet airplane are not on the horizon, and that it sees offering new engines as a way to provide the updates airlines are demanding for older-design aircraft. But Nutall said the needed advancements are about 10 years away.

New engine developments by Pratty & Whitney are already apparently making Rolls-Royce nervous. Pratt has developed a "Geared Turbofan" and has hinted it might break away its International Aero Engine partnership with R-R.

Southwest Airlines COO Mike Van de Ven said at an industry conference in June that planemakers need to start thinking about new designs to replace their workhorse single-aisle jets. He said any re-engining plan would offer only "marginal improvements" that would not justify investment on the part of airlines. Boeing, for its part, reportedly is leaning towards waiting another 10 years and then introducing an all-new replacement for the 737.

FMI: www.rolls-royce.com, www.airbus.com