In the lawsuit by Rolls-Royce against Pratt & Whitney for alleged infringement over the fan blade design of the PW-GE GP7200 vs the RR 900 (both engines on the Airbus A380), we get a rare glimpse into the engine pricing.

Here’s one article that gives detail. RR says it had to discount its 900 more than 87% compared with a normal discount of 77%.

Consider the persistent rhubarb over Airbus vs. Boeing discounts, which are routinely 25%-33% sometimes rumored to be 50% or more, the revelation about the current state of engine discounts is remarkable…but not unprecedented.

We remember one Delta Air Lines deal in the 1990s in which the engine was given, as in free, to Delta with the follow-on maintenance spare parts contracts being where the forthcoming profits were expected.

It was generally thought that in recent years, deals such as Delta’s weren’t necessary, but as we can see from this lawsuit, deep, deep discounts continue.

The judge’s ruling over reduction in damages is a clear win on this point for PW; the merits of the case, PW’s counter-lawsuit, have yet to be addressed.

 

Please follow like us:
Pin Share
%d bloggers like this: