Joint Venture To
Develop Next Generation Of Aircraft Engines
By Shane Nolan
October 16, 2011 - Pratt & Whitney and Rolls-Royce, the
global power systems company, announce a restructure of
their participation in IAE International Aero Engines AG
(IAE), which produces the V2500 engine for the A320
family of aircraft.
Under the terms of the agreement, Rolls-Royce will sell
its equity and program shares in IAE to Pratt & Whitney
for $1.5 billion. Pratt & Whitney intends to discuss a
possible offer of a portion of these shares with its IAE
partners MTU Aero Engines AG (MTU) and Japanese Aero
Engines Corporation (JAEC).
addition, Rolls-Royce shall receive an agreed payment
for each hour flown by the current installed fleet of
V2500-powered aircraft for fifteen years from completion
of the transaction.
continuing leadership of Pratt & Whitney, JAEC and MTU, IAE will
continue to deliver the same high-quality product and customer
support without interruption. Rolls-Royce remains committed to
IAE and its customers and will continue to be responsible for
the manufacture of high-pressure compressors, fan blades and
discs as well as the provision of engineering support and final
assembly of 50 percent of V2500 engines.
creation almost thirty years ago IAE has become a major force in
international aviation with approximately 4,500 V2500 engines in
service and approximately 2,000 on order.
Pratt & Whitney and Rolls-Royce also announced an agreement to form a new partnership to power future mid-size aircraft (120 ? 230 passenger aircraft). The two companies will establish a joint venture company, in which each will hold an equal share, to develop new engines for the next generation of aircraft that will replace the existing mid-size fleet.
venture will draw on the most-advanced technology from two
world-class companies to drive enhanced performance for this
fast-growing segment in which worldwide demand for around 20,000
new aircraft (or nearly 45,000 engines) is predicted over the
next 20 years.
This new joint
venture will focus on high-bypass ratio geared turbofan? technology. In
addition, the venture will collaborate on future studies for next
generation propulsion systems, including advanced geared engines, open
rotor technology and other advanced configurations.
The new joint
venture between Pratt & Whitney and Rolls-Royce also benefits from the
success of the V2500 and the PurePower engine in establishing a broad
customer base. It builds on the long-standing and successful partnership
between Pratt & Whitney and Rolls-Royce in the mid-size segment. JAEC
and MTU, partners of IAE and the PurePower PW1100G-JM (Geared Turbofan?)
engine program for the Airbus A320 New Engine Option (neo), also intend
to join the new collaboration.
announcement charts a clear course for the future of Rolls-Royce in the
important mid-size aircraft segment,? said Mark King, president, Civil
Aerospace, Rolls-Royce. ?We are building on many years of successful
collaboration with Pratt & Whitney in this segment to develop advanced
aero engines, which we are confident will set new standards in aviation
technology, performance and fuel efficiency.?
position Pratt & Whitney, JAEC, MTU and IAE to best serve the needs of
their customers for all A320 aircraft family,? said Todd Kallman,
president, Commercial Engines & Global Services, Pratt & Whitney. ?We
are delighted to collaborate with Rolls-Royce with its complementary
capabilities as we look forward to the next generation of aircraft
engines that will offer even greater operational and environmental
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