CRJ100/200 Engine Overhaul Bill Could Top $1bn

June 27, 2012
Three of every four of the General Electric CF34-3 engines that power 50-seat regional jets will need to be overhauled within the next three years at a total expected cost of more than $1 billion, according to data compiled with Aviation Week Intelligence Network’s MRO Prospector tool.
The CF34-3 powers Bombardier CRJ100 and CRJ200 aircraft, and more than 1,300 of the engines are in service.
The biggest impact will be at U.S.-based SkyWest Airlines, where essentially all of the 284 engines currently listed as in-service are projected to require overhauls within the next three years at an expected cost of nearly $300 million.
Such maintenance costs do not fall solely on regional carriers as their major-airline partners often cover those costs directly or indirectly. That explains why Delta Air Lines—one of SkyWest’s affiliates—is so eager to speed up reduction of the 50-seater fleet operated by its regional airline partners.
It also explains why some friction has developed among U.S. major carriers and their regional airline partners about maintenance payments or fixed-fee adjustments.
Pinnacle Airlines, which operates its CRJ100/200 fleet only for Delta, is approaching overhauls on nearly 75% of its CF34-3 engines at a projected cost of $180 million. Delta subsidiary Comair also faces overhauls on slightly more than 50% of its 50-seaters’ engines at a projected cost of $50 million.
Air Wisconsin Airlines, which operates its CRJ200s for US Airways, is projected to spend $114 million to overhaul 82% of the engines.
Outside of the U.S., Canada-based Jazz Air is approaching overhauls on 75% of its CF34-3 engines at a cost of more than $75 million, and Spain’s Air Nostrum may need to spend more than $62 million to overhaul nearly all of its CRJ200 engines.

 

SkyWest has already been paid money to cover this cost.. About 20 mill a year from United.. It was a agreed "pre-payment".. Not saying this isn'nt going to hurt us. The Q1 call said by next year this cost wont factor in much..were almost over the engin overhual hump...

 

True, and according to higher ups, There's more flying coming down the pipes. But people will continue to hate on OO.

 

There will be more flying when we see more flying. Until then, keep calm and dream on.

 

And youll keep beer bonging that SLC kOOl aid. I guess once it hits your lips its so good, eh Frank the Tank? You sure know alot for just being hired. Not saying what you say is false but you act as if youve been hired at FDX or wherever your dream Major is.

 

Hey going through training and IOE you meet and talk to a lot of the people in the know. Could they be selling a rah rah juice? Sure, but I've known guys here for years and they agree that the higher ups don't just say things to say them.

But..... I am a newb, so what do I know

 

Those 44 new jets that show up at SKW next year?

The NxxxCA painted on the tail is the ComAir of which I speak. Tell your children when we're gone.

 

I sent my app in on Monday, how long should I wait to expect a call?

 

Well being that they're backed up, I'd say 3-4weeks...

 

The new domicile vacancy report is out, looks like 45 upgrades come September.