Engine supply issue may affect Cebu Pacific fleet, growth
Cebu Pacific reported that an engine servicing issue with supplier Pratt and Whitney (P&W) may affect its fleet availability next year and will result in a downgrade of its growth targets.
In a disclosure to the Philippine Stock Exchange (PSE), Cebu Pacific said it has been informed by P&W of a condition that will further affect maintenance plans for its engines.
“There is no immediate impact on our operations, but we expect that this will affect our fleet availability in 2024,” the carrier said. The P&W engines power A320NEO and A321 NEO aircraft worldwide.
In June, Cebu Pacific explained that it is facing capacity issues due to the lack of repair and overhaul slots at the workshops of P&W for the engines of A320NEO and A321NEO planes.
This is because the time on wing of P&W GTF engines turned out to be much shorter than expected. The engines are being removed from service well before there is a risk of failure.
Because these engines are coming off wing earlier than expected, there is now a backlog in the shops. There are so many engines coming in for repairs and maintenance that P&W is facing a supply chain issue in terms of materials, parts and manpower.
Then, on Sept. 11, P&W said it would need to increase the number of engines that need to be inspected due to an engine flaw stemming from several parts being manufactured with contaminated metal powder which makes them more susceptible to corrosion and can cause cracks throughout the geared turbofan engines.
Over the next three years, nearly 3,000 engines will need to be removed and inspected.
At the end of 2023, Cebu Pacific’s fleet will total 76 aircraft and growing to 91 during 2024. It is the youngest fleet in the Philippines and includes 25 P&W powered Airbus aircraft.
“We anticipate that a number of the aircraft will be affected next year by the recent announcement and as such the growth rate for 2024 will be revised downwards,” Cebu Pacific said.
It noted that, “we would like to assure our passengers that this is not a safety issue. The accelerated fleet inspection will ensure the continued safe operation of the P&W fleet.”
Cebu Pacific said, “P&W understands the importance of its partnership with Cebu Pacific and has committed to work closely with us to minimize any potential impact that this issue may have on our operations.
“Given the complexity of the situation in the near-term, P&W assured us that it has aligned the expertise and resources needed and will work with its partners to resolve things as efficiently as possible,” it added.
The airline said it has already taken a “focused approach to proactively manage supply chain and operational challenges facing the industry.”
In recent months, it has put in place substantial contingency measures with current on-time-performance (OTP) levels reaching “as high as 90 percent.”
“This reflects our commitment to providing our customers with a safe, reliable, and affordable travel experience,” Cebu Pacific said.