It is not only scheduled airlines that are affected by delivery problems at engine manufacturer Pratt & Whitney, but business aviation is also increasingly affected. For example, the Austrian company GlobeAir AG has been unable to use an average of six to seven aircraft for over a year.
This situation is causing the company increasing concern, as it has been waiting a long time for urgently needed replacement engines. However, Pratt & Whitney Canada cannot deliver these quickly, which is why Globe Air AG is unable to use an average of six to seven aircraft, according to company boss Bernhard Fragner.
Staff levels had to be adjusted
This also had consequences for the staff: "In fact, we have major concerns with our engine manufacturer. We have had 6-7 aircraft on the ground for over a year because we don't have any engines. Sadly, we also had to adjust the crew accordingly, which is very unfortunate but unavoidable. At the same time, however, we decided not to adjust the entire non-flying organization because we will still need it later on, but we are currently somewhat overstaffed in terms of overhead. For me, however, it turned out to be the best decision because we are moving a number of other things forward," Fragner told Aviation.Direct.
This affects not only the delivery of brand new engines, but also the overhaul of existing ones. After a certain number of take-offs and landings or flight hours, these engines must be extensively serviced in order to ensure reliability and flight safety. Globe Air AG has contractually obliged the manufacturer, Pratt & Whitney Canada, to carry out this work. This is actually the best solution, because it can be assumed that the company that manufactures a product also has the most expertise. However, Pratt & Whitney Canada has not seemed to be able to meet its contractual obligations to Globe Air AG and other customers for some time.
GlobeAir AG demands compensation
"In the contract, PWC promised us a turnaround time of 50 days for an engine overhaul, from dispatch by us to return. We based our planning of engine overhauls on this part of the contract and also bought 4 replacement engines as a buffer," says Globe Air boss Bernhard Fragner. "The fact is that since Corona, PWC has had a massive personnel and quality problem (see also the airlines' engines) and we are now averaging 225+ days of turnaround. This means that the whole thing is no longer manageable and aircraft are grounded without engines for a long time."
The management of the Austrian on-demand airline does not want to let the matter rest. You do not need to know much about aviation to realise that GlobeAir AG cannot generate any revenue with those aircraft that are on the ground. Only aircraft that are booked by customers for on-demand flights and can fly generate revenue. This is precisely why the Upper Austrian company has filed a claim for damages against Pratt & Whitney Canada. Specifically, it is about being compensated for lost revenue due to the breach of contract.
"At the same time, there are a few technical problems with PWC and the SBs that are only being resolved very slowly. We are in a legal dispute with PWC involving eight-figure sums. Of course, we would have the entire fleet in use, but PWC is preventing us from doing so," explains Fragner.
Stable finances, new hangar and fleet renewal
When asked whether the current situation poses any threat to the company, the GlobeAir CEO reassured: "GlobeAir's financial position is stable, just as stable as it has been in recent years. We have no external liabilities, nor have we ever had any, all aircraft belong to us and are not financed. We have solid cash flow and are paying discounts. We have had a good 2024 so far, even better than planned, and the summer season (June - September to today) was really very good."
GlobeAir AG is clearly not burying its head in the sand, as the largest infrastructure project in the company's history is continuing and is due to be completed shortly. Among other things, GlobeAir AG will be putting its own maintenance hangar into operation at Linz Airport.
"We are currently finishing our own maintenance hangar, complete with workshop, our own apron and offices at Linz-Hörsching Airport. We will be moving in in a few days, which we are all very excited about. I dare say it is one of the most beautiful and highest quality hangars in Austria for this purpose," announces Fragner.
In contrast to other business jet operators, all of GlobeAir AG's aircraft are owned by the company. No jets are under management. A fleet renewal is due to take place soon: "We are also beginning to reduce our Mustang fleet, we have already sold two aircraft, and another 3-5 are to be sold in the next few months. We are under no pressure, only if the price is right. At the same time, we are expanding the fleet of the next GlobeAir platform. Here we have chosen the Citation M2G2 and are very much looking forward to it. This project is very comprehensive and requires a lot of internal personnel resources, which we do not have unlimited, so we are giving the project enough time."
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