A320neo Source: Airbus A320neo Source: Airbus Close

Triumph’s Fabrications business based out of Hot Springs, Arkansas will produce structural skins for the thrust reversers using metal-forming techniques. Triumph’s extensive experience in metal-forming techniques will support Bombardier’s supply chain throughout the program from test panels to full-rate production.

SPU300[BA] APU for Bombardier 7000/8000 bizjets Source: Safran SPU300[BA] APU for Bombardier 7000/8000 bizjets Source: Safran Close

Airliners and medium-size to large business jets are the two primary markets for APUs. Production of airliners - which includes both mainliners and regional jets - is forecast to increase through 2020, though deliveries of regional jets will grow much more slowly than deliveries of large commercial transports. While widebody airliners remain an important source of demand, production of APUs for just two narrowbody airliner families - the Boeing 737 and Airbus A320 - will account for almost 45 percent of the APU market overall.

Production of large and long-range business jets is forecast to increase in 2019 and beyond, driving up demand for APUs.

Production in both segments will decline in 2021-2022 due to an anticipated cyclical decline in the civil aviation market, but will return to growth in 2023.

In contrast to the civil sector, production of APUs for military aircraft will remain stable during 2019-2023, exceeding 500 units per year. After that, production will begin a slow decline due to shrinking demand for military fighters, military transports, and fixed-wing trainer aircraft. The military segment of the market accounts for only about 15 percent of demand for APUs, so sharply lower demand from military customers will have a relatively limited impact on the overall APU market.

The APU market is heavily concentrated. Just two companies - Honeywell and United Technologies through its Pratt & Whitney subsidiaries - will account for over 95 percent of production in the APU market during the forecast period. France's Safran also has a small piece of the APU market, but it may grow in the future. Safran and aircraft manufacturer Boeing are creating a new joint venture that will work on designing, building and servicing aircraft APUs. The two manufacturers received required regulatory approvals for the venture in November 2018, and the new company could expand Safran's share of the APU market should Boeing launch a new middle-of-the- market aircraft program in the near term. It could also produce a replacement for the APUs that currently equip the 737 MAX family, giving it a hefty chunk of the narrowbody market.

Source: Vallair Source: Vallair Close

The engine was delivered to Sojitz Aerospace in December and forms part of an ongoing partnership which has seen Vallair sell three engines for disassembly into the Sojitz Aerospace parts pool with more in the pipeline for 2019. The V2500 engine type is installed on half of Vallair’s A321 fleet, and unserviceable or run-out engines currently transition to third party shops for repair to support the fleet ongoing, or get sold for tear down. "A mature engine market often creates an increased supply of spare engines and used serviceable material, which can be fed into cost-effective solutions for owners of mature aircraft like Vallair," said Anca Mihalache, Head of Trading & Leasing. "Higher lease rates mean the V2500 engines will remain in service for longer. Our fleet of A321s, which predominantly carry this engine type, will need first class support for many years to come particularly as we develop our A321 Cargo Conversion programs and we anticipate more engines will be put through repair procedures rather than teardown for part-out in order to sustain value in these important assets." This year will see Vallair’s own Engine Business Unit, which actively markets engines and spare parts, invest in tooling and training to expand its portfolio of MRO and teardown expertise which is presently centered on the CFM56-5A engine type.

NOTICE TO USERS

Warranty: Forecast International makes no guarantees as to the veracity or accuracy of the information provided. It warrants only that the information, which has been obtained from multiple sources, has been researched and screened to the best of the ability of our staff within the limited time constraints. Forecast International encourages all clients to use multiple sources of information and to conduct their own research on source data prior to making important decisions. All URLs listed were active as of the time the information was recorded. Some hyperlinks may have become inactive since the time of publication.

Technical Support: Phone (203)426-0800 e-mail support@forecast1.com

Subscription Information: Phone (203)426-0800 or (800)451-4975; FAX (203)426-0223 (USA) or e-mail sales@forecast1.com

Aerospace/Defense News Highlights is published by Forecast International, 22 Commerce Road, Newtown CT 06470 USA. Articles that list Forecast International as the source are Copyrighted © 2019. Reproduction in any form, or transmission by electronic or other means, is prohibited without prior approval from the publisher.

Forecast International invites all interested companies to submit their announcements and press releases for review and inclusion in our Intelligence Letters.

Contact: Ray Peterson, Director of Research
E-Mail: Ray.Peterson@forecast1.com
Phone: 800-451-4975
FAX: 203-270-8919