Engine Maintenance Management - Aircraft Monitor

1 Presented By:Shannon AckertSVP, Commercial OperationsJackson Square AviationManaging Technical Aspects of Leased AssetsMadrid, Spain / May 12th, 2015 Engine Maintenance ManagementPage 2 Managing Technical Aspects of Leased Assets May 12th, 2015 Technical Drivers of Off Wing Maintenance Commercial Considerations of Off Wing Maintenance Lessor & Lessee Considerations of Off Wing Maintenance Flight Hour Agreement (FHA) ProgramsAmodernengineoftenoperates25,000 hoursbetween major overhauls;equivalent to13,500,000milesor flying to the moonand back over27 AEngine Maintenance Costs & reserve Rates AgendaTechnical Drivers of Off Wing MaintenancePage 3 Managing Technical Aspects of Leased Assets May 12th, 2015 Engine Maintenance ManagementTechnical drivers of off wing Engine Maintenance can bebroadlycategorized into four areas.

2 Technical Drivers of Off Wing Margin of Life Limited Parts (LLPs) Removal CausesPage 4 Managing Technical Aspects of Leased Assets May 12th, 2015 Technical Drivers of Off Wing MaintenanceExhaust Gas Temperature EGT isameasureofthetemperatureof the gas as it leaves the turbine are certified with temperature limits enforced via a limiton maximum take off EGT, referred to as theredline EGT Margin DeteriorationPage 5 Managing Technical Aspects of Leased Assets May 12th, 2015 EGT RedlineEGT850 C TO = 850 C EGT850 C RL = 950 C Technical Drivers of Off Wing MaintenanceEGT Margin (EGTM)isthedifferencebetweenthepeak EGTincurred during take off and the certified redline EGT. It is usedto evaluate and track enginetime on wing & RedlineEGT Margin = 950 C 850 C = 100 C Time Since Initiation of Take offEGT C Full Ta ke off PowerEGT Margin C = EGT Redline EGT Take off1.

3 EGT Margin DeteriorationPage 6 Managing Technical Aspects of Leased Assets May 12th, 2015 Technical Drivers of Off Wing MaintenanceEGT margins (EGTM)are at their highest levels when the enginesare new or just following EGT Margins for new CFM56 7B Engines1351101008555815840850865895 Red Line = 950 CEGT Take off CEGT Margin CEngine Model7B207B227B247B267B27 Takeoff Thrust20,60022,70024,20026,30027,3001. EGT Margin DeteriorationPage 7 Managing Technical Aspects of Leased Assets May 12th, 2015 Technical Drivers of Off Wing MaintenanceAs the Engine deteriorates, the EGT margin will rise until itreachesRedline EGT, or the absolute temperature limit whichcannot be exceeded without damaging the engineEGT RedlineEGT MarginTime Since Initiation of Take offEGT CNew EngineDeteriorated Engine1.

4 EGT Margin DeteriorationEGT Margin DeteriorationPage 8 Managing Technical Aspects of Leased Assets May 12th, 2015 Technical Drivers of Off Wing MaintenanceEGT Margin Deteriorationlargely results fromhardware distress( gradual increase in clearance between turbine blade tips &surrounding static seals or shrouds, and combustor distress)EGT Margin Deterioration Cycle SealLeakageAirfoil ErosionIncreased TipClearancesIncreasing Gas Path Flow LossesIncreases EGTMD eteriorationIncreasing Fuel BurnCompressorFouling1. EGT Margin DeteriorationPage 9 Managing Technical Aspects of Leased Assets May 12th, 2015 Technical Drivers of Off Wing MaintenanceRates of EGTM deterioration are highest during initial operation& subsequentlystabilize to reach a steady state Between EGTM Deterioration & Engine FC1.

5 EGT Margin DeteriorationPage 10 Managing Technical Aspects of Leased Assets May 12th, 2015 EGT Deterioration C Engine Flight CyclesInstallation Loss ( 25 C first 2,000 FC) 2,0004,0006,0008,00010,000 Steady Sate LossPer 1,000 FC( 5 C / 1,000 FC )806040200 Technical Drivers of Off Wing MaintenanceRate of EGTM deterioration is influenced by:Flight Operations rate of EGTM deterioration increases as: Engine thrust rating increases Engine derate decreases Average flight leg decreases Operating environment becomes more severeEngine Age (Maturity) First run engines traditionally have higher EGTM and lower EGTM deterioration rates relative to mature engines1. EGT Margin DeteriorationPage 11 Managing Technical Aspects of Leased Assets May 12th, 2015 Technical Drivers of Off Wing MaintenanceEGTM trend monitoring trend monitoring of EGTM looks atsuccessive snapshots to help analyze the wear trend of EGT Margin DeteriorationPage 12 Managing Technical Aspects of Leased Assets May 12th, 2015 Technical Drivers of Off Wing MaintenanceWithin Engine modules are certainparts that cannot becontainedif they fail, and as such are governed by the number offlight cycles parts are known asLife Limited Parts (LLP)and generallyconsist of disks, seals, spools, and are discardedonce their useful lives are Expiry of Life Limited Parts (LLPs)

6 Page 13 Managing Technical Aspects of Leased Assets May 12th, 2015 Technical Drivers of Off Wing Maintenance2. Expiry of Life Limited Parts (LLPs)Page 14 Managing Technical Aspects of Leased Assets May 12th, 2015 LLPs account for ahigh proportionof mx costs onshort haulmissionsdue to lower avg. flight legs & higher cycle accumulationLLPs account for alow proportionof mx costs onlong haulmissionsdue to higher avg. flight legs & lower cycle accumulation CFM567B SHOP VISIT FORECASTER RATING 7B26/ETOW (FH) 25,495 TOW (FH) 12,600 TOW (FH) 16,200 FLIGHT LEG (FC) 14,164 TOW (FC) 7,000 TOW (FC) 9,000 DERATE10%BUILD GOAL (FC)7,000 BUILD GOAL (FC)9,000 BUILD GOAL (FC)9,000 REGIONT emperateWORKSCOPE LEVELPRWORKSCOPE LEVELPR+WORKSCOPE LEVELPR SUMMARY DATA PR : $ M LLP : $ M SV : $ MSV : $ MSV : $ MSV : $ M PR ($/FH) : ($/FH) : ($/FH) : ($/FH) : Stub Loss : Loss : Loss : Loss.

7 SHOP VISIT 2 SHOP VISIT 3 SHOP VISIT 1 SUMMARY64%36%PR : $ MLLP : $ M67%33%PR : $ MLLP : $ M64%36%PR : $ MLLP : $ MTechnical Drivers of Off Wing MaintenanceAll Engine components are exposed to different kinds ofdeterioration mechanisms. These include amongst others: Low and high cycle fatigue, Thermo mechanical fatigue, Erosion / Corrosion / OxidationOther removal causes include amongst others: Foreign Object Damage (FOD), Oil Leak / High Oil Consumption, Vibration, Airworthiness Directives3. Hardware Deterioration4.

8 Other Removal CausesPage 15 Managing Technical Aspects of Leased Assets May 12th, 2015 Engines operating onshort haul flightsexperience higherremovals due to: a.) EGTM deterioration & b.) LLP expiry. Engines operating onmedium to long haul flightsexperiencehigher removals due to deteriorating: a.) hardware & b.) Drivers of Off Wing MaintenanceShop Visit Removals %EGTMS hort haul OperationMedium/Long haul OperationEGTMLLPLLPH ardwareHardwareOtherOtherTechnical Drivers of Engine Removals by OperationPage 16 Managing Technical Aspects of Leased Assets May 12th, 2015 Page 17 Managing Technical Aspects of Leased Assets May 12th, 2015 Commercial Considerations of Off Wing MaintenanceEngine Maintenance ManagementCommercial Considerations of Off Wing MaintenanceCommercial considerations are often influenced based onwherean Engine is in its economic lifecycleEISG rowth0 8 20 > 20 1 Phase 2 Phase 3 Entry Into Service (EIS) Engine first enters into service.

9 Growth Engine gaining acceptance & orders are increasing, Stabilization Engine sales are at a consistent, steady level. Dispersion Engine sales drop to a low level & are being sold forspare parts or 18 Managing Technical Aspects of Leased Assets May 12th, 2015 EISC ommercial Considerations of Off Wing MaintenanceWorkscope Considerations : Phase 1 2 (Growth + Stabilization) Build for minimum number of SVs, which allows one to achievelower shop DMC ($ / FH) but higher SV costs. Use OEM parts & repairs, Invest / Benefit from latest SB modifications & technology Build to maximize EGTM recovery and time on wingGrowth + StabilizationPhase 1 Phase 2 Page 19 Managing Technical Aspects of Leased Assets May 12th, 2015 EISC ommercial Considerations of Off Wing MaintenanceWorkscope Considerations.

10 Phase 3 (Dispersion) Maximizing usage of LLPs, which often leads to lower SV costs buthigher DMC ($ / FH) Weigh benefits of purchasing replacement Engine in lieu ofperforming a shop visit Weigh benefits of PMA parts and DER repairsDispersionPhase 3 Page 20 Managing Technical Aspects of Leased Assets May 12th, 2015 Commercial Considerations of Off Wing MaintenanceExample Workscope Consideration:Growth & StabilizationDispersionWorkscopeFull OverhaulCore RestorationLLP ReplacementFan + Core + LPTCore ModulesBuild Goal20,000 FC 8,000 FC Restoration Cost $$ $ Cost $$ $ Shop Visit Cost $$ $ $ / FH @ FL$ / FH$ / FH1333813 20 20 830 20 20 25 Engine Enters Shop Engine Exits ShopLLP Stub lives remainingPage 21 Managing Technical Aspects of Leased Assets May 12th, 2015 Page 22 Managing Technical Aspects of Leased Assets May 12th, 2015 Lessor & Lessee Considerations of Off Wing MaintenanceEngine Maintenance ManagementLessor & Lessee Considerations of Off Wing MaintenanceEnginesinstalledonleasedaircr aftoftentimeshave moreconstraintsand will depend on the.