By Marcus Leach
Rolls-Royce, the global power systems company, and Pratt & Whitney, a United Technologies Corp. (NYSE:UTX) company, are pleased to announce 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.
The new 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 collaboration brings together complementary technological resources and is designed to offer the best, most competitive response to customer demand for the next generation powerplant in the mid-size segment. The collaboration could bring about significant value for customers as both parties are able to benefit from each other’s strengths.
As well as establishing the new partnership, Rolls-Royce and Pratt & Whitney will restructure their participation in 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 programme shares in IAE to Pratt & Whitney for $1.5 billion and in addition 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.
Under the 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 per cent of V2500 engines.
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