Business Daily from THE HINDU group of publications Monday, Aug 07, 2006 |
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Logistics
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Airlines Snecma revs up at Farnborough
At last month's Farnborough Air Show, Safran group's Snecma Services secured landing maintenance, repair and overhaul (MRO) services contracts from airlines across the world. Snecma Services' experience, close ties with the engine manufacturer, and the ability to design a customised financing arrangement were decisive factors in winning these contracts, according to a Snecma Services release. S7 Airlines (formerly Siberia Airlines) has awarded an exclusive 10-year engine service per hour (ESPH) contract to Snecma Services, covering all MRO services for its CFM56-5A engines. S7 is a privately-owned airline, based in Norvorisibirsk, and with a main hub in Moscow. Snecma Services will be in charge of MRO services for about 20 engines in the S7 fleet. Mr Jean-Lin Fournereaux, Chairman and CEO of Snecma Services, said: "This latest contract consolidates our position in the Russian market, as well as our world leadership in the CFM56-5A MRO market."
Air One deal
Snecma Services has bagged a similar contract from Air One, covering all MRO services for the CFM56-5B engines powering its recently ordered fleet of 30 A320 twinjets. The contract, worth over $500 million, will cover these engines for a minimum of 16 years, including a minimum of two restoration shop visits per engine. Air One, owned by Gruppo Toto, a construction and civil engineering groups in Italy, operates a fleet of 31 Boeing 737 aircraft, and since May has established a regional carrier, Air One CityLiner, operating six CRJ-900s.
First contract
Snecma America Engine Services a joint venture of Snecma Services and Turborreactores SA de CV (ITR) has reached an agreement with Mexicana de Aviacion SA de CV, a privately-owned Mexican airline, for an exclusive 20-year contract covering MRO services for the CFM56-5B engines powering the airline's Airbus A320 fleet. This is the first contract won by Snecma America Engine Services (SAMES). The repair shop will be located in Querétaro, about 220 km from Mexico City, and will support operators in the Americas starting in late 2007. Though a major player in MRO services in India, Snecma Services did not enter into any contract with an Indian airline at Farnborough. According to Mr Vincent Gorry, National Executive, South Asia, Safran, Snecma is in discussion with all the major airlines to offer its services. In 2005, it overhauled all the CFM56 engines of Air Sahara and half of those of Jet Airways. The rest of the CFM56 engines (of Indian, Air India, Spice Jet and Go Air) are new.
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