In Jan 2019, FADEC Alliance signed a 25-year agreement with Lufthansa Technik to provide Full Authority Digital Engine Controls (FADEC) availability services for LEAP engines globally. LEAP engines are high by-pass turbofan engines which are highly reliable and high performance, enabling 15% lower fuel consumption as well as life cycle maintenance costs in comparison to the best CFM56 engines.
FADEC Alliance is a joint venture of GE Aviation and FADEC International. In this joint venture, GE Aviation provides turboprop engines, components, and integrated systems for military, commercial, business, and general aviation aircraft. FADEC International, which is a 50-50 joint venture between a subsidiary of BAE System Control Inc. and Safran Electronics & defense (Safran Group), provides design, and produces and supports full authority digital engine controls for commercial aircraft engines.
The agreement between FADEC Alliance and Lufthansa Technik would use the engine controls systems to provide the best support for asset management services to the commercial transport industry. The agreement includes logistics & Maintenance, Repair, Overhaul (MRO) and asset management among others as supports. Lufthansa Technik is expected to provide a global pool of Line Replaceable Units (LRUs) for customers with the establishment of a certified repair station in Hamburg, Germany for the LEAP FADEC services, whereas FADEC Alliance is expected to provide technical assistance from the FADEC Alliance MRO network located in France and other parts of Europe. FADEC Alliance and Lufthansa Technik, both have their global footprint in their specific fields, which makes this agreement very attractive for the airline industry across the world.
MarketsandMarkets™ Point of View
Vaibhav Dixit – Associate Vice President : Aerospace & Defense, at MarketsandMarkets™, shares his Point of View as mentioned below:
Leap Engine equipped with FADEC Systems are used on Boeing 737 MAX, Airbus A320neo, and COMAC family 919 aircraft. It replicates that FADEC Alliance gain a competitive edge over its competitors across every product line through technological innovations and agreements with various world leading manufacturers and services in their ecosystem. This agreement would bring high performance asset services and efficiency for airline industry. Furthermore, the leading expertise of Lufthansa Technik in MRO services and asset logistics and FADEC alliance’s technical expertise in LEAP Engine control would provide a big boost to airlines industry, globally. FADEC innovations and various strategic alliances in their ecosystem will help achieve inorganic growth to further increase revenue, expand customer base, and enhance its leading position in the airline industry globally.