Rolls-Royce and Pratt & Whitney announce new partnership and IAE collaboration is restructured
13 October 2011
Rolls-Royce and Pratt & Whitney have formed a new partnership to power future mid-size 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. This new joint venture will focus on high bypass ratio geared turbofan technology, and future studies for next generation propulsion systems.
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 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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