Airlines

CFM says redesigning some LEAP jet engine parts

French-American jet engine producer CFM International announced on June 17 that it was modifying some components of its LEAP engine to increase durability in hostile environments, to be available for retrofit on Airbus and Boeing aircraft in next year.

It is the most recent example of how growing stress in regions like the Middle East and India has exacerbated a maintenance capacity constraint brought on by post-COVID labour shortages, particularly for CFM’s rival Pratt & Whitney.

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The company stated in a briefing before to the Paris Airshow that the action is CFM’s response to its investigation of high-pressure turbine blades and turbine nozzles when operating in severe and hot environments.

The Airbus A320neo family is powered by CFM, which also competes with Pratt & Whitney to power the Boeing 737 MAX. Analysts claim that all engines require some time to reach the longer intervals between maintenance visits promised to airlines, intended to lower repair costs, but Pratt & Whitney has received the most attention so far because it has the most out-of-service jets.

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CFM reported that engine utilisation had rebounded to 92% of pre-pandemic levels, and that manufacture of new LEAP engines would grow by 50% this year to 1,700 units.

CFM, which was established in the wake of a summit between the leaders of French and the United States that took place 50 years ago, announced that it was ready to begin ground and flight testing in the middle of the decade for its newest open-fan engine project, known as RISE, which is scheduled to be released in 2035. CFM officials claimed that the technology would reduce emissions by 20% and that it was being enhanced through access to supercomputers.

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Airlines

German Carrier Lufthansa Plans for 20% Job Cuts in Administration

Lufthansa Airlines is reportedly planning significant job cuts in its administrative workforce. According to Manager Magazin, the German carrier intends to reduce administrative positions by 20% as part of its cost-cutting measures amidst an anticipated decline in earnings.

This reduction could impact approximately 400 jobs, the report revealed. While Lufthansa has not directly commented on the layoffs, the airline confirmed its goal of cutting administrative costs by 20% by 2028.

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The strategy involves leveraging digital technologies, including artificial intelligence and automation. “A hiring freeze is currently in place for administrative roles at Lufthansa Airlines,” said a company spokesperson.

The staff reduction is expected to occur through natural attrition and age-related turnover, rather than forced layoffs. The internal projection cited by the magazine warns that Lufthansa could face an operating loss of €800 million ($843.92 million) by 2026 if no corrective measures are taken.

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The report highlights the challenges companies face in aligning workforce requirements with current and future demands. Failure to adapt could necessitate drastic actions, such as restructuring and layoffs, which carry significant repercussions for both the organization and its employees.

As Lufthansa navigates these challenges, the airline appears committed to balancing cost efficiency with digital transformation to maintain its competitiveness in a rapidly evolving industry.