In a recent disclosure, US company RTX, formerly known as Raytheon, has unveiled a rare manufacturing flaw that could lead to the grounding of hundreds of Airbus jets in the coming years, prompting concerns from multiple airlines and aerospace suppliers. RTX has announced the need to remove between 600 and 700 Pratt & Whitney Geared Turbofan engines from Airbus A320neo jets for quality inspections spanning from 2023 to 2026.
These inspections, aimed at detecting the elusive manufacturing flaw by RTX, may result in an annual average of 350 grounded jets through 2026, with a peak of 650 idled aircraft in the first half of 2024. Initially projected to take 60 days, repair work on the affected engines is now anticipated to extend to a staggering 300 days per engine, according to RTX CEO Greg Hayes.
As a consequence, major carriers such as Air New Zealand, Singapore Airlines’ Scoot unit, and Hungary-based Wizz Air are bracing for capacity cuts. Air New Zealand, boasting a fleet of 16 A320neo jets, foresees a “significant” disruption to its flight schedule commencing January 2024, due to potential engine unavailability. Similarly, Scoot expects to grapple with issues impacting four of its A320neo engines, requiring adjustments to select flights. Meanwhile, Wizz Air has projected a potential 10% reduction in capacity for the latter half of fiscal 2024.
The predicament extends beyond airlines, casting a shadow on aerospace suppliers entwined with the beleaguered engine program. London-listed Melrose Industries approximates a potential cash impact hovering around 200 million pounds, while Japan’s IHI and Kawasaki Heavy Industries have also acknowledged forthcoming earnings setbacks, owing to the prolonged quality inspections.
This latest revelation exacerbates the already formidable challenges faced by the airline industry. Analysts on Wall Street opine that the situation appears to be more dire than initially assessed, compounded by persistent staff shortages, the introduction of new aircraft, and persistent supply chain disruptions. With the specter of 600 to 700 engines potentially withdrawn from service, airlines are poised to weather a substantial blow to their operational capacity, necessitating flight adjustments and potentially enduring significant financial setbacks.
Source: Reuters
