Posted by- Neelam Mathews
Oct 15, 2011
Rolls-Royce and Pratt & Whitney have signed 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.
Rolls-Royce and Pratt & Whitney will also restructure their participation in IAE, which produces the V2500 engine. Under the terms of the agreement Rolls-Royce will sell its equity and program 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 15 years from completion of the transaction.
The new venture will cater to 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 benefits from the success of the V2500 and the PurePower engine in establishing a broad customer base. It builds on the long-standing partnership between Pratt & Whitney and Rolls-Royce in the mid-size segment. Japanese Aero Engine Corporation (JAEC) and MTU Aero Engines (MTU), partners of IAE and the PurePowerPW1100G-JM (Geared Turbofan) program for the Airbus A320 New Engine Option (neo), also intend to join the new collaboration.