PW1100G engine recall (2023)
The powder metal defect RTX disclosed on July 25, 2023 in the disks of Pratt & Whitney GTF (Geared Turbofan) engines. It grounded hundreds of A320neo aircraft without any physical damage, and so fell outside the scope of hull policies.
This recall is the removal and inspection campaign for Pratt & Whitney's geared engines, some of whose disks were made from contaminated powder metal. On July 25, 2023, presenting its quarterly results, RTX disclosed that contaminated powder metal had been used to make high-pressure turbine disks in the PW1100G, the geared engine of the A320neo. On September 11, the numbers followed: 600 to 700 engines to be removed for inspection through 2026 and a charge of about $3 billion in the third quarter. An average of 350 aircraft would be grounded each year from 2024 to 2026. IndiGo, Wizz Air and Spirit parked nearly new aircraft for lack of spare engines. For a hull underwriter this is a short read. No disk failed in flight on these aircraft, so there is no accidental loss or damage, and the hull policy does not respond to a precautionary inspection or to wear. Non-damage business interruption barely exists in commercial aviation. The bill is settled between airline and engine maker, through credits and negotiated compensation, and between lessor and airline under the lease return conditions. The insurance market keeps one angle of exposure: had a defective disk burst before removal, the uncontained failure would be a hull loss, and the engine maker would face a recovery under its product liability. Hence the close watch lead underwriters on the aviation products line keep on the removal schedule. In scale the episode matches the 737 MAX, except that no accident preceded the measure.
In 2024, several European and Asian airlines wet-leased aircraft to replace A320neos parked for lack of engines. Those costs fall outside the hull policy, for lack of accidental damage, and the airlines turned to Pratt & Whitney, which negotiated compensation case by case.
GTF powder metal issue, PW1100G recall, Pratt & Whitney GTF groundings, geared turbofan inspections
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