Mass Grounding of Chinese A320neo Fleet Sparks $3 Billion Payout from Pratt & Whitney Over Engine Defects

Faulty GTF Engines Ground 40% of PW1100-Powered Jets, Disrupting Airlines During Peak Travel Season

SHANGHAI—Chinese airlines are grappling with an unprecedented operational crisis as nearly 40% of Airbus A320neo jets equipped with Pratt & Whitney’s PW1100G-JM engines remain grounded due to critical safety defects, according to data from aviation analytics firm Flight Master. The fallout has forced the U.S. engine maker to commit to $3 billion in compensation and accelerated repairs, prioritizing Chinese carriers amid mounting pressure over flight cancellations and fleet shortages.

Crisis at Scale

In February 2025, 108 out of 274 PW1100-powered A320neo aircraft in China—operated by nine airlines, including Air China, Sichuan Airlines, and West Air—were idled for inspections. Air China, the hardest-hit carrier, saw over 50% of its affected fleet grounded, while Sichuan and West Air reported grounding rates exceeding 35%.

The disruptions stem from a September 2023 disclosure by Pratt & Whitney (RTX.N) of a manufacturing flaw in the engine’s high-pressure compressor, linked to defective powder metallurgy materials. The issue, which can cause abnormal vibrations, accelerated component wear, and even midair engine failures, requires affected engines to be removed and shipped to maintenance facilities for inspection—a process taking 250–300 days per engine.

Globally, an average of 350 aircraft daily are projected to remain grounded through 2026, Pratt & Whitney estimates, as the industry scrambles to address what analysts call one of the most costly technical crises in modern aviation history.

Operational Chaos

The grounding has severely dented fleet utilization rates, particularly during China’s Lunar New Year travel peak. PW1100-powered A320neo jets averaged just six hours of daily flight time in February—below the 6.5-hour average for China’s domestically produced COMAC C919 jets and far short of the 9.8-hour utilization rate for Boeing 737 MAX planes (powered by CFM’s LEAP-1B engines). Competitor A320neo jets using LEAP-1A engines, by contrast, maintained a 9.5-hour daily rate, with only 5.5% of China’s 465 LEAP-powered aircraft grounded.

“This isn’t just a maintenance problem—it’s a systemic bottleneck,” said Zhang Wei, an aviation analyst at CITIC Securities. “Airlines face cascading delays, crew scheduling nightmares, and revenue losses during the busiest travel period.”

Root Cause: A Bet Gone Wrong

The PW1100G-JM, part of Pratt & Whitney’s Geared Turbofan (GTF) series, was marketed as a breakthrough for fuel efficiency and emissions reduction. However, its reliance on advanced powder metallurgy components—intended to reduce weight and improve durability—has backfired. Cracks in the high-pressure compressor rear casing and premature part degradation have plagued the engine since its 2016 debut, prompting repeated airworthiness directives.

While Pratt & Whitney has vowed to upgrade its metallurgy processes and expedite inspections, airlines remain skeptical. “The 300-day turnaround per engine is untenable,” said a senior engineer at Air China, who declined to be named. “We’re leasing older A320ceos and delaying retirements to fill gaps.”

Financial Fallout

Pratt & Whitney’s parent company, RTX Corp., has earmarked $3 billion to cover compensation and repairs, with Chinese carriers receiving priority support. Yet the payout barely offsets the operational havoc: Air China’s shares fell 2.3% last week amid warnings of Q1 profit erosion, while budget carrier West Air canceled 15% of its scheduled flights in February.

The crisis has also handed an unexpected advantage to CFM International, the joint venture between GE Aerospace and Safran SA, whose LEAP engines now dominate China’s A320neo fleet. “This debacle underscores the risks of over-reliance on a single engine supplier,” said Li Ming, a Shanghai-based aerospace consultant. “Carriers will diversify their fleets—good news for Boeing and COMAC.”

Long Road Ahead

Pratt & Whitney insists it has “mobilized global resources” to resolve the issue by 2026, but airlines brace for prolonged turbulence. With travel demand in China projected to grow 8% annually, the pressure to restore capacity—and passenger confidence—has never been higher.

As one airport manager in Guangzhou put it: “Every grounded plane is a stark reminder that innovation without reliability is just a empty promise.”