CFM LEAPs As GTF Angst Continues

Airbus’ A320neo is inextricably linked to the troubled GTF engine family. That its biggest customer, IndiGo, had to come out and explain the difficulties it was having tarnishes them, the engine and Airbus.

Airbus may well miss delivery targets for 2017 as more and more engineless A320neo’s continue to pile up. The impact on production rates, the ceo-to-neo transition, as well as delay-related compensation payments will damage Airbus’ earnings and its wafer-thin margins.

It makes Boeing’s move to solely power the 737 MAX with CFM International’s LEAP-1B even more an astute and de-risked move.

Most telling from the GTF woes is that the IndiGo President, Aditya Ghosh, noted that it would “be another year or so before the design changes are implemented by Pratt and Whitney” to get the engines to perform as advertised.

This is in stark contrast to Pratt & Whitney’s statement that it would resolve all GTF engine issues by next month.

So who is telling the truth? The airline or the engine maker?

Image Courtesy of Airbus.

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