The following article is from our August 2008 issue.

The Start of a New Era? Bombardier's revolutionary engine system

The decisive meeting seemed like wage negotiations between a cost conscious employer and its unions: At around 1 a.m. on a Saturday morning, Lufthansa and Bombardier finally agreed on something both were willing to sign. For the time being, it's only a letter of intent but nevertheless, the implications are far reaching.

On the eve of last month's Farnborough Air Show, the German airline ordered up to 60 Bombardier C-series jets. The purchase, yet to be confirmed by Lufthansa's supervisory board, is an important decision by the airline, a breakthrough for the Canadian aircraft manufacturer and an even bigger signal to the industry.

The order marks the formal launch of the C-series, a new aircraft family for 110 to 130 passengers. The jet, promising to use 20 percent less fuel than current models thus reducing emissions by at least the same amount, will be on the market in 2013. Even though executives at Boeing and Airbus try to play down the significance, the C-series will be a new competitor for them as it is roughly of the same size as the Boeing 737-700 and the Airbus A319.

More significantly, the launch of the C-series marks the start for a new engine technology the industry desperately needs. American aircraft engine manufacturer Pratt & Whitney signed up to build a so-called Geared Turbofan (GTF) engine to power the aircraft.

The engine's crucial advantage is a gear box enabling its center part to turn slower than the outer blades thereby saving energy and fuel. Munich-based engine specialist MTU Aero Engines is a key supplier in the program with its high-pressure compressor and the low-pressure turbine among other parts.

The launch of the GTF triggered a series of competitive reactions. Both Rolls-Royce and General Electric (GE) are now looking into a competing concept called Open Rotor. The engine's most obvious new feature is a large propeller resembling those used in smaller regional aircraft.

Manufacturers believe they can develop such an engine for larger aircraft and at a much higher speed that would save up to 20 percent fuel. GE additionally launched a second development program based on currently available technology. The advanced engine is to improve efficiency by 16 percent and should be on the market in 2016.

Efficiency gains are difficult to achieve in an industry that has already seen massive improvements over the past decades. But still the pressure on manufacturers is high: Exploding fuel prices and upcoming environmental restrictions such as the European Union's Emission Trading Scheme (ETS) lower the growth opportunities of most airlines. The operators therefore are urging suppliers to come up with something new and more efficient than current jets.

Giovanni Bisignani, the International Air Transport Association's (IATA) secretary general, has set the industry an ambitious goal: By 2020, carbon dioxide emissions need to be cut by 50 percent and by 2050, the industry needs to be completely emission free.

For Bombardier, the big picture counts too but the decision is mainly about corporate strategy. For many years, the manufacturer has been studying which new aircraft should be launched. While Airbus and Boeing enjoy good sales of their A320 and 737 families and Brazilian manufacturer Embraer is making a success story out of the smaller 70- to 120-seat E-Jet family, Bombardier's product portfolio does not ensure long-term market presence. The company currently builds the CRJ700, 900 and 1000 series (70 to 100 seats) but stopped production of the smaller CRJ200 (50 seats) due to slow demand.

Smaller regional jets have become increasingly uneconomical with fuel prices doubling over the past year. Bombardier builds more efficient turboprops and considers upgrades to them, too, although the market is less lucrative.

The launch order for the C-series reinforces Lufthansa's position as one of the industry's most important buyer of new aircraft. Not only has the German carrier bought 15 Airbus A380s and 20 Boeing 747-8 Intercontinental to renew its fleet of large intercontinental aircraft, it is also adding to its European fleet by buying more Airbus A320s and Embraer 195s. The C-series is the latest addition to its growing fleet.

- Jens Flottau