Pratt & Whitney and Rolls-Royce have announced plans to restructure International Aero Engines (IAE). Under this agreement, Rolls-Royce will sell its shareholding in IAE to Pratt & Whitney.
A possible offer of a portion of these shares to IAE partners MTU Aero Engines AG (MTU) and Japanese Aero Engines Corporation (JAEC) may be in the future. Pratt & Whitney will establish IAEâ€™s future strategic direction with partners JAEC and MTU, and IAE will remain its own brand.
Rolls-Royce shall receive an agreed payment for each hour flown by the current installed fleet of V2500-powered aircraft for 15 years from completion of the transaction.
Rolls-Royce 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.
â€œThis agreement positions IAE to best serve the needs of its current and future V2500 customers,â€ said Ian Aitken, president and chief executive officer of IAE.
Jim Guiliano, executive vice president of IAE, said, â€œThe new structure allows for a more unified approach to market for the entire A320 family of aircraft.â€
Pratt & Whitney and Rolls-Royce also announced an agreement to form a new partnership to power future mid-size aircraft. This collaboration will bring together the two companiesâ€™ complementary strengths and capabilities to offer the most competitive response to customer demand for the next generation powerplant for mid-size aircraft.
IAE is a multinational aero engine consortium whose shareholders comprise of Pratt & Whitney (NYSE: UTX), Rolls-Royce (RR.L.), Japanese Aero Engines Corporation and MTU Aero Engines. There are more than 6,000 V2500s in service or on order with nearly 200 customers around the world.