Christchurch Engine Centre

By Rob Neil

More than 50 years ago, the world-class overhaul and maintenance facility now known as the Christchurch Engine Centre began life overhauling Pratt & Whitney Wasp series radial piston engines. Originally owned by NAC (later Air New Zealand), in April 2001, the company made a kind of “full-circle” serendipitous return to its Pratt & Whitney roots when it was sold to the Pratt & Whitney Air New Zealand Services partnership (a joint venture between Pratt & Whitney (51%) and Air New Zealand Limited (49%)).

Having begun by overhauling radial piston engines, the company entered the turbine age when it began overhauling the Rolls Royce Dart turboprop engines used by NAC’s fleet of Vickers Viscounts and Fokker F27 Friendships. The venerable Dart, which first flew in the late1940s, was still being produced for the last F-27s and HS 748s built in 1987. Today, Christchurch Engine Centre remains one of only two major facilities in the world still overhauling Darts. As a result, with more than 300 Dart-powered aircraft still flying, this classic engine still comprises part of the Engine Centre’s core business. Having already overhauled more than 4,000 of them since it began, the company still overhauls around two Darts a month.

Having begun by overhauling radial piston engines, the company entered the turbine age when it began overhauling the Rolls Royce Dart turboprop engines used by NAC’s fleet of Vickers Viscounts and Fokker F27 Friendships. The venerable Dart, which first flew in the late1940s, was still being produced for the last F-27s and HS 748s built in 1987. Today, Christchurch Engine Centre remains one of only two major facilities in the world still overhauling Darts. As a result, with more than 300 Dart-powered aircraft still flying, this classic engine still comprises part of the Engine Centre’s core business. Having already overhauled more than 4,000 of them since it began, the company still overhauls around two Darts a month.

The Centre’s biggest Dart “customer” is a conglomerate of five independent Canadian operators, who own a total of around eighteen Dart-powered aircraft between them. The Engine Centre has come up with a unique “cooperative contract” with all these independent (and otherwise competitive) operators to be their exclusive overhaul facility for the next five years. Despite the challenges inherent overhauling an engine type that is now more than 60 years old, the Christchurch facility has the capability of overhauling 12 Darts a year through its Canadian contract if required.

When NAC introduced the JT8D-powered Boeing 737-200 in 1968, NAC’s engine centre added the first jet engine to its product line. The airline (later known as Air New Zealand) operated JT8D-powered versions of the 737 until late 2001.

The JT8D low-bypass turbofan was developed from the military J52 turbojet, which had a successful history powering the A-4 Skyhawk, the A-6 Intruder, the EA-6 Prowler, the Dassault Super Mystere and the North American AGM-28 Hound Dog missile. The J52’s reputation as a solid, reliable performer was only increased following its evolution into the JT8D that subsequently powered the McDonnell Douglas DC-9, the Boeing 727-100 and -200, the Boeing 737-100 and -200, the Sud Aviation Caravelle and the Dassault Mercure. Later “Dash-200” JT8Ds also powered the McDonnell Douglas MD-80 series of airliners, and have recently been selected to power the USAF’s E-8C J-STARS aircraft. In addition, Sweden’s Volvo Flygmotor developed a version of the JT8D as the Volvo RM8. Fitted with an afterburner, it was used to power Sweden’s indigenous Saab Viggen.

By the time of the Engine Centre’s April 2001 formation, the departure of the JT8D from the national carrier’s fleet was not a problem for the newly-formed Pratt & Whitney Air New Zealand Services partnership, as the Engine Centre had been attracting increasing amounts of third-party JT8D overhaul work since its first contract with a major US operator in the early 1990s. The combination of Air New Zealand’s strong international reputation (both as an airline and for its engineering work), Pratt & Whitney’s long history of performance and reliability, and the Engine Centre’s extensive experience of half a century of overhauling engines, has continued to attract JT8D customers from around the world.

International customers from around the globe continue to send their engines across the world to New Zealand, which is indicative of the regard in which the Christchurch Engine Centre is generally held. It is even more of an indication when one considers that when the Engine Centre penetrated the North American market, Pratt & Whitney was not a partner in the company and there were plenty of other Pratt & Whitney overhaul centres available in North America. No other inference can be drawn but that the quality of work and level of customer service justify the trip to New Zealand.

Bill Moeller, the general manager of Christchurch Engine Centre, said it was this kind of success that first attracted Pratt & Whitney’s interest and instigated the subsequent partnership with Air New Zealand, after Pratt & Whitney found out just what was going on down at the bottom of the world in little old Christchurch, New Zealand.

With the introduction of more modern, fuel-efficient engines around the world, it is inevitable that JT8D business will eventually reduce. However, as Moeller points out, just as few people expected the Dart to remain in service as long as it has, he is confident that the JT8D will be similar. He believes there will still be significant JT8D business for at least the next 10–20 years.

Not long after it was formed in 2001, Christchurch Engine Centre added the International Aero Engines (IAE) V2500 to its existing Dart and JT8D product lines. Why the V2500 and not the CFM56, which powers Air New Zealand’s current fleet of 737-300s? While the choice of V2500 instead of CFM56 might seem unusual at first glance, in fact, it is a very sensible one, as the V2500 powers the globally popular Airbus A320 family of aircraft—of which Air New Zealand also operates 12.

There were already a number of existing CFM56 overhaul facilities elsewhere, and it simply wouldn’t have been economically viable for the Engine Centre to introduce two entirely new tooling, training and test programmes into its product line. Indeed, according to Bill Moeller, Christchurch Engine Centre is already rather unique among engine overhaul facilities in having as many different product lines as it does—most others specialise far more.

Pratt & Whitney already operates has a number of CFM56 overhaul facilities around the world and with the close ties between the two companies, Pratt & Whitney encourages Air New Zealand to use these for its CFM56 overhauls.

Upon introducing the V2500, the Engine Centre entered an agreement with International Aero Engines to service these engines for its customers who operate them under a “fleet hour agreement” (FHA) “pool” system. The Christchurch Engine Centre is one of six “partner shops” used by IAE for overhauling its FHA engines; others are owned variously by MTU, Rolls Royce, IHI (Ishikawajima-Harima Heavy Industries) and Pratt & Whitney.

In addition to its FHA work, the Centre also overhauls V2500s for others who do not operate their engines under fleet hour agreements. Some of these include major operators in Asia and the Middle east, and others in South East Asia. The business has also made inroads into the Chinese market, overhauling V2500-A5 and V2500-D5 engines from there in the past three years.

Regardless of engine type, the overhaul process is basically divided into three stages. The first stage—referred to as “Gate 1”—is the tear-down and inspection stage. “Gate 2” is the maintenance and repair stage, and “Gate 3” is the re-assembly and finishing stage. Gate 2 involves the greatest amount of work and the faster the engineers can strip engines in Gate 1, the faster they can progress to the important overhaul phase. At any one time, there can be as many as 15 engines progressing through Gate 2, so the logistic and supply chain issues are quite complex and must be managed carefully.

Its remoteness from much of its global market is one of the biggest challenges facing Christchurch Engine Centre because it means that its competitors overseas can potentially be working on an engine a day or two before the Kiwis. “Therefore,” says Moeller, “we need to be super-competitive in turnaround time and supply chain to make up for it…which we are. And we believe we are certainly competitive in terms of quality.”

Modern engines are far too expensive for airlines to have extra engines lying about as “spares”. Their overhauls are planned well in advance and Moeller says there is understandable commercial pressure and competition to reduce turnaround times to a minimum. Obviously, the larger and more complex the engine is, the longer it takes to overhaul it. With the V2500 being the biggest and most complex of the engines the Centre overhauls, Moeller says they constantly strive to improve their efficiency in turning these around for customers in order to remain competitive. “It is an ongoing process, like all good systems, of course,” he says.

Moeller says that in addition to its distance from the market, the Christchurch Engine Centre’s biggest challenges are fuel prices, transportation costs and utility prices. He stresses the necessity of understanding their cost structure completely and constantly looking for more efficient ways of operating.

Having been with Pratt & Whitney for 11 years, Moeller has a highly practical background and lots of engineering experience to balance his academic qualifications. A one-time active-duty US Coast Guard officer, he also has a significant amount of maritime engineering behind him.

He says he believes that the Centre’s continuing success in the global market comes down to three main factors. The first of these is what he describes as the company’s impeccable customer service. “If we expect a customer in another country to put an engine on a truck, drive past one of our competitors, put that engine into a plane and fly it all the way to New Zealand just so we can overhaul it, our customer service has to be impeccable…and it is!” He adds that the long involvement by Air New Zealand has engendered an innate understanding throughout the organisation of the need to keep aeroplanes flying and prevent AOG situations. Not surprisingly, customers appreciate this.

The second factor that Moeller says contributes to the Centre’s success is the consistently high quality of its work, which he believes is equal to the very best in the world. “It has to be,” he insists. “If we are receiving an engine all the way from Europe or America, and sending it all the way back when we’ve finished, it simply has to be right the first time.” Not only would a “return” alienate a valuable customer, it simply wouldn’t be cost-effective for the Engine Centre. “Our quality allows us to secure business ahead of our competitors, even though we might not always be the cheapest.”

Moeller believes that the third important factor is the Centre’s process of continuous improvement. Its programme of “Achieving Competitive Excellence” (ACE) is how it constantly attempts to improve and be more efficient. The programme covers every aspect of the company’s operation: improving operational methods on the shop floor, mistake-proofing, improving business processes and reducing waste (at every stage—from office to shop floor). “If we aren’t looking at ways to improve—all the time—our competitors will overtake us.”

To an outsider, the precision involved in the workshop operation is truly impressive to see. The obvious practicality of the existing systems and infrastructure enable an unqualified observer to understand exactly what is happening throughout the overhaul process. Every single item in the workshop has a place and everything is in its place. When an engine is stripped, a series of itemised shadow-boards, cabinets and shelves are used to store and record every component. There is no possibility of “forgetting” something or having any bits “left over” at the end of an overhaul. Every trolley or moveable tray has a place marked on the floor and there is a colour-coded and clearly labelled system of markings on the floor to indicate things like workflow direction.

To anyone with even a mild interest in things mechanical, the whole operation is a visual “symphony” of organisational excellence.

The Engine Centre currently employs around 400 permanent employees. The company has a long-term commitment to future recruitment and a desire to foster a new generation of Kiwi aerospace workers. With an average annual attrition rate of around five percent, it needs to recruit around 20 engineers in total each year. The Centre supports the “Gateway” programme run by the ATTTO (Aviation, Tourism and Travel Training Organisation), and its robust apprenticeship programme already adds around 10–15 apprentices a year.

Before 2007, there had been some difficulty recruiting enough new engineers. However, with the introduction of a dedicated “Corporate Identity Team”, whose job is to raise the company’s public profile, this changed. One tactic used successfully by the Centre to raise its public profile and attract future apprentices has been to establish a presence at major air shows like Warbirds Over Wanaka.

In days gone by, aircraft engineering, particularly for NAC or Air New Zealand, was widely accepted as a career to aspire to. The reasons this was so, and the justification for it hasn’t changed: it is a career that still justifies high aspirations. However, other things have changed and a proliferation of alternative technologies have evolved to interest young people. It is obvious from speaking to Bill Moeller that increasing and maintaining a high public profile through its Corporate Identity Team and a long-term recruitment strategy that includes commitment to programmes like “Gateway” are as essential to the Christchurch Engine Centre’s future viability as the quality of its engineering. Moeller talks of a commitment to a “partnership” with prospective employees that will encourage them to become interested and remain interested in aviation.

Staff retention is important for an industry with such highly qualified specialists; aircraft engineers cannot be produced overnight. Nevertheless, Moeller understands that there will always be people wanting to leave—even if only temporarily. In this regard, the Pratt & Whitney connection is a significant asset for the company in that it provides opportunities for qualified staff wanting to move around the world. By having facilities in places like China, Turkey, Norway, Canada and Australia, as well as the US, it means Pratt & Whitney (and, by association, the Christchurch Engine Centre) does not “lose” the investment it has made in training a staff member who relocates.

Another big advantage that the Christchurch Engine Centre has in terms of staff retention is its location and the lifestyle that New Zealand and Christchurch offers. As Moeller says, there will always be people who want to be there just because of where it is. It is always good to hear such comments—especially from a non-Kiwi.

The Engine Centre’s staff specialise to some degree, but in such a relatively small organisation, it is important for them to be able to switch between product lines. This is not only in case of an upsurge in business in any one type, but also, in event of a downturn in one type, so that they are able to re-deploy and keep working. As well as safeguarding staff, the flexibility helps to maximise efficiency and profitability.

In addition to its core business of overhauling aircraft engines, the Engine Centre does a small amount of engineering support work as well. It also conducts some external NDT (non-destructive testing) work, including around 100 hours a month for the general aviation community. Occasionally, it also does some industrial work, such as complex machining, for those external customers who understand that aerospace quality costs aerospace prices. However, such work is not the Centre’s core business, and it can’t afford to get “bogged down” or have the engine overhaul process disrupted.

After more than half a century of operation, the Christchurch Engine Centre has evolved from an “in-house” engine shop for NAC/Air New Zealand into a globally recognised engine overhaul facility that is second to none.

Pacific Wings would like to thank Bill Moeller and the team at Christchurch Engine Centre.