AirBaltic takes Pratt to task for engine issues

There are few airlines in the world as bullish about the A220 as airBaltic. The company committed to the type in 2012, when it was still the Bombardier C-Series. Since then the Latvian flag carrier has repeatedly increased its order book, most recently extending to 80 firm orders, plus 20 options.

The [GTF] engine itself is perfect because it delivers what it’s supposed to deliver. It just doesn’t stay on the wing long enough.

– Martin Gauss, airBaltic CEO

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The planes are delivering the operating efficiencies the carrier needs, having replaced older 737s and Q400s. But, like all other operators of the Pratt & Whitney GTF engine, the airline faces challenges tied to reliability and time on wing. CEO Martin Gauss is generally optimistic about the engine performance overall, and notes that the problems are “getting much better; the engines are much more reliable, they stay on wing longer.” But the carrier still faces an uncertain winter, with a larger number of aircraft expected to be grounded pending engine repair. And, with that, additional negotiations with Pratt for compensation.

To Gauss, those conversations are not going well, “Pratt after years now says ‘okay, that’s the risk of doing business.’ And actually we disagree because RTX group said we will make customers whole for the damage and they don’t.”

Perhaps it is just negotiations happening in public, but Gauss continued with his complaint:

There’s some friction now in the discussions, of course, because Pratt is a big company. We’re a small company. And they’re using the power of being a big US military complex company and basically telling us where we are from. I don’t like it, but I have to live with it…

We have a very good relations especially at the leadership level. But it is always different as a small airline to deal with these large conglomerates because they they always tell you who you are in a very interesting way.

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Overheard at AIX

It would be easy to dismiss Gauss’s comments as an airline CEO kvetching about a supplier. Wandering around Aircraft Interiors Expo 2024 last month, however, offered a confirmation of his position in an unlikely and unintended manner.

An attendee wearing a badge identifying them as an Airbus employee was overheard in a phone call on the floor sharing some similar concerns. Among other things, they suggested that Pratt was pushing – and Airbus was being dragged along in the process – to determine the absolute “minimum, minimum, minimum” number of aircraft needed for an airline to operate.

Read more: IndiGo faces major setback in A320neo service due to GTF PW1100G engines

For very small airlines, who would be out of business without their planes, as well as larger airlines with stronger leverage, those numbers were generally more reasonable. For mid-sized airlines including airBaltic, however, the squeeze is more challenging.

Similarly, that same conversation included mention that Airbus found itself working harder to sell the engine reliability than any facet of the aircraft comfort or capabilities. Finally, there was concern expressed by the Airbus employee regarding Pratt’s ability to meet publicly stated time-to-repair goals, with airlines occasionally not getting engines back as quickly as promised.

Future fleet plans

Despite the engine issues, airBaltic is doubling down (literally) on its A220 bet. The carrier will add another 50 aircraft to its fleet by the end of the decade (30 firm orders, 20 options Gauss 100% expects to convert), with Gauss noting that the engine issues with the A220s are better than those A320 operators are experiencing. Along with this, however, airBaltic must also consider the changing landscape of its potential route network.

Gauss is clear that the carrier will keep its focus in the Baltics, but he also sees potential for other opportunities. While he declined to name specific future bases, Gauss highlighted the success of its winter operations based from Grand Canary, serving Nordic destinations. Similarly, he expects to build additional capacity at smaller northern hubs, akin to its Tallin operations.

Read more: Delta’s massive new aircraft order is not all about the planes

Notably, however, Gauss expects to continue the carrier’s split between in-house and wet-lease operations. The carrier operates 30% of its fleet today on behalf of other airlines. He expects to maintain that ratio going forward. Today those planes operate exclusively for Lufthansa Group; in the future Gauss expects that to expand to other airlines “all over the globe.”

Demand for that service is high, he claims, with airBaltic able to deliver a more comfortable and environmentally-friendly passenger experience. That comes from operating new aircraft with lower fuel costs and lower emissions, rather than the typically older generation planes that make up ACMI fleets.

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Ultimately airBaltic does not have a lot of flexibility in its approach to the market. Given its desired aircraft size and existing fleet, the A220 – and the GTF engine – make too much sense to switch away from today. But that does not mean the next several years will be easy for the carrier, for Pratt, for Airbus, or for passengers as the engine reliability issues are (hopefully) resolved.

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