CFM56 Decline Still Chased

Established in 2005 with headquarters in Paris, Safran is a French multinational aircraft and rocket, engine, aerospace-component and security company. Working world-wide, Safran has just about 58,000 employees and logged sales on 18.6 billion dollars in 2016. It is a partner in the CFM point venture which builds the CFM56 for the Airbus A320 and Boeing Airplane 737 Max, as well as he Leap for the A320new, 737 Max and Comac C919.

Safran turned over 147 The CFM International Leap engines during the first half, but the figure has yet to depart the drop in CFM56 deliveries. The specialist’s statistics show that it provided 81 engines in the first quarter but only 66 in the following one.

In fact, it expanded CFM56 production, supplying 365 engines in the second quarter opposed to 345 in the first. The total was 710, whereas last year it was greater with 176.

The output of leap engines are increasing. The company has order for nearly 13,100 leap powerplants including more than 1,000 registered in June at Paris air show. "Demand for the engine ensures that the production ramp down will be more gradual than expected," says Safran. However, the decrease in CFM56 production, let to a collapse in the original equipment profit for the company’s civil engines operations.

The decreasing in CFM56 production and the negative margin of leap engine output and distribution affected the propulsion margin. In spite of increasing, the civil aftermarket performance did not entirely counterbalance the impact.

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