737MAX/LEAP vs A320neo/GTF

CFM International looks like it will snare a bulk of the engine orders on the A320neo family where customers have yet to make a selection.

That it has taken almost nine months after certification for Airbus to hand over the first A321neo powered by the PW1100G-JM engine speaks immense volumes. Such a gap between certification and first delivery of this magnitude is simply unprecedented.

There is no escaping the fact that the A320neo program is inextricably linked and marred by the GTF woes. CFM International’s monopoly on the 737 MAX and widening lead on the A320neo in orders and deliveries means that Pratt & Whitney has more than just an engine family to fix – it is losing sales to the tune of billions.

Look no further than the last couple of Paris Air Show and Farnborough Air Shows for evidence.

Pratt & Whitney parent United Technologies (NYSE: UTX) is now concentrating on its planned acquisition of Rockwell Collins. Airbus is right be concerned that the deal could mean UTX taking its eyes off the GTF ball.

Either way, CFM International’s commanding market leadership in the narrowbody market is going to get bigger – paced only by its ability to deliver on its unending and growing LEAP engine backlog. And of course, Boeing can capitalise on Airbus’ production dithering with the 737 MAX.

Image Courtesy Of Boeing.

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