757 Power By The Hour Ends

[BoeingBoy]

It's been so long since this came up, I'm not even going to bother trying to find the old thread.....

US and Rolls-Royce have severed the 757 engine overhaul contract (usually called "power by the hour"). The company has filed the motion to reject the contract and (according to the motion) is currently putting out bids for a replacement overhaul service.

Jim

The more I thought about it, the more I think a recap is in order since it's been so long.

Early in the BK, RR filed a motion asking that US be forced to accept or reject the "power by the hour" contract, citing the potential financial harm of having to perform their obligations with no assurance of being paid. At that time, they apparently had 4 spare 757 engines in various stages of being overhauled.

US & RR worked out a temporary deal for RR to release one overhauled engine in return for payment of Sept's post-BK bill.

Apparently, subsequent agreement(s) were reached which resulted in RR releasing the remaining overhauled engines. In return, US paid post-BK bills for Oct, Nov, and Dec.

That brings everything up to date.

 

[ringmaruf]

Maybe US will bring the work inhouse.



Sorry, I couldn't resist.

 

[justaumechanic]

US does not want to have RR do the work anymore.. They don't want to pay for the long on wing time they are getting with the overhauled engines..

The company intends to send the engines to Abul's Engine Overhaul in Baghdad Iraq.. This will help the people of Iraq and will be offset with American Dollars to help get the Iraqi economy back on track.

The FAA has agreed and will not perform any type of Audits or inspections for 5 years and US will not send any QA people for 5 years.. If the engine blows up on the wing it is a small sacrafice to help get a nation back on its feet..

Bruce Lakefield and USA320 commented that "ITs a great day for US Airways and the Iraqi people".. For the sun of $500 american US Airways will get an engine overhaul. Its a bargain.. Much better than the million we were paying the lousy Canadians for our overhauls.. Lakefield has stated that if the engine overhauls are done in a timely manner of about 200 days they will consider sending the Airbus overhaul to Baghdad as well. The Iraqi'a have stated they could do an S check in about 180 days for $1000 which we consider is a great deal.

 

[BoeingBoy]

they will consider sending the Airbus overhaul to Baghdad as well. The Iraqi'a have stated they could do an S check in about 180 days for $1000 which we consider is a great deal.

[post="250327"][/post]​

Does that include the cost of the cans of spray paint they use when they pull off a component, paint it, yellow tag it, and put it back on?

Jim