Delta TechOps signs engine support deal with Virgin Australia

[topDawg]

ATLANTA, Dec. 09, 2015 – Delta TechOps—Delta Air Lines’ (NYSE: DAL) maintenance division—will perform maintenance, repair and overhaul services for Virgin Australia’s fleet of CFM56-7B engines through a 13-year exclusive agreement.
 
link 
 
​MRO services keeps getting deals done. Its been a while since we have had this many deals announced in such a short time. Hopefully some of the Airbus work (including more 330 checks) they have been going after will be announced soon. Congrats to 289 and all the support shops that go with it! 

 

[eolesen]

Seems to be a long way to ship an engine off the wing...

 

[metopower]

Pays to get it done right the first time

 

[Kev3188]

What dept. is 289?

 

[700UW]

Engine shop

 

[topDawg]

Seems to be a long way to ship an engine off the wing...

not these days. 
DL, for example, sends its Trent 800s to SAESL (SIN) and its V2500s to the Christchurch engine center (PW/NZ)
 
And, not to sound like a cheerleader, the guys in the CFM56 shop are very good at what they do. Last I heard they were beating the industry average in TBOs and TATs by a pretty good margin. Judging by VAs previous moves they aren't looking for the cheapest vendor but quality.
 
Would not be shocked at all if DTO ends up getting more 737 work (components/APU) and A330 work (c-checks and components)  

What dept. is 289?

CFM56 shop. 
 

Pays to get it done right the first time

oddly enough Virgin was sending their CFM56s to a JV between them and............QF 
but QF wants out of the maintenance business. I will never understand why some airlines think revenue is stupid. *shrug*    
 

Engine shop

FWIW the engine shop has several different departments
282 is the large and small test cells (ATL)
283 is the PW2000 shop
284 is the GE CF6 and GE90 shop
286 is the APU shop/gearbox
287 is the PW4000 shop
288 is the JT8D shop
289 is the CFM56 shop
299 is the CF34 shop 
 
and then you have all the support shops (ie case shop, blade and vain,T/Rs, wire harness, fuel shop etc) that have all their own dept. numbers. (some are 200s, some are 300s and some are 400s.) 
I do not know the dept. number for the BR715 shop yet. 

 

[eolesen]

oddly enough Virgin was sending their CFM56s to a JV between them and............QF 
but QF wants out of the maintenance business. I will never understand why some airlines think revenue is stupid. *shrug*

QF seems to want out of the domestic airline business. It wouldn't surprise me to find within ten years everything that is QF domestic today to become Jetstar, and all of the short-haul international also moving to Jetstar or a similar JV like they've done in Japan.

If QF won't be operating narrowbodies for the long term, why keep the JV with VA going?

The business is a good win for DL.

 

[Kev3188]

not these days. 
DL, for example, sends its Trent 800s to SAESL (SIN) and its V2500s to the Christchurch engine center (PW/NZ)
 
And, not to sound like a cheerleader, the guys in the CFM56 shop are very good at what they do. Last I heard they were beating the industry average in TBOs and TATs by a pretty good margin. Judging by VAs previous moves they aren't looking for the cheapest vendor but quality.
 
Would not be shocked at all if DTO ends up getting more 737 work (components/APU) and A330 work (c-checks and components)  

CFM56 shop. 
 

oddly enough Virgin was sending their CFM56s to a JV between them and............QF 
but QF wants out of the maintenance business. I will never understand why some airlines think revenue is stupid. *shrug*    
 

FWIW the engine shop has several different departments
282 is the large and small test cells (ATL)
283 is the PW2000 shop
284 is the GE CF6 and GE90 shop
286 is the APU shop/gearbox
287 is the PW4000 shop
288 is the JT8D shop
289 is the CFM56 shop
299 is the CF34 shop 
 
and then you have all the support shops (ie case shop, blade and vain,T/Rs, wire harness, fuel shop etc) that have all their own dept. numbers. (some are 200s, some are 300s and some are 400s.) 
I do not know the dept. number for the BR715 shop yet.

Thanks!

 

[topDawg]

QF seems to want out of the domestic airline business. It wouldn't surprise me to find within ten years everything that is QF domestic today to become Jetstar, and all of the short-haul international also moving to Jetstar or a similar JV like they've done in Japan.

If QF won't be operating narrowbodies for the long term, why keep the JV with VA going?

The business is a good win for DL.

I don't think they will be out of the narrowbody world till its time for the 737s to be replaced. In that case i don't see why they wouldn't keep doing the CFM56s in the JV. 
 
Of course that isn't nearly the only thing QF has sent out. IIRC they don't do any engines in-house at all anymore. 
 
but my problem is airlines like that(and AA/UA) that have a very good history in MX get a CEO that "doesn't want to be an MRO". If i was a stock holder watching Delta add nearly 1B in revenue to the balance sheet (as well as lowering its own costs due to economies of scale) while my airline is paying other airlines large amounts of money to do that work I'd be pissed. 
 

Thanks!

Fwiw you can find out some of the DTO departments here

 

[southwind]

Can't speak for other shops but turn time, in the particular shop I work in was approx. 2 days a few years ago. It's now 18 hours.
I commend all my fellow co workers for stepping up and proving, day in and day out, that a reliable product is put out , safely and compliantly!

 

[topDawg]

Can't speak for other shops but turn time, in the particular shop I work in was approx. 2 days a few years ago. It's now 18 hours.
I commend all my fellow co workers for stepping up and proving, day in and day out, that a reliable product is put out , safely and compliantly!

Last I heard the CFM shop was about 3-5 days (depending on work scope) ahead of industry average on turn times. Also think they have added about a year on to the TBOs compared to industry average. 
 
My understanding is they are trying to find a way to bring the CFM56-5A fleet in-house on the little buses. The overhaul agreement with Snecma ends in 2020 but space is a big issue.