If there is any sign of confidence in business, its when you can raise prices. Pratt & Whitney is raising list prices of its PurePower Geared Turbofan™ (GTF) engine across the product line to reflect the significant value these engines are expected to provide customers following entry into service. The new pricing is scheduled to go into effect in 2015.
“We are more confident than ever that the PurePower engine is the most fuel efficient engine in its category. Airlines already see the benefits of our technology, which will save millions of dollars in fuel expenses and maintenance costs year after year,” said Greg Gernhardt, president, Pratt & Whitney Commercial Engines. “As a result of the exceptional customer demand and great test results on our PurePower engine, we are implementing increases to the engine pricing across our product range.”
No price increase guidelines were announced. But the increase for each model and type will become effective at different points throughout 2015.
If they raise prices for the particular models used exclusively on the CSeries, E2-Jets and MRJ, this should also raise the price of these aircraft, which will make them harder to sell, which could reduce the number of engines that P&W will supply for these models.
In addition, there is an alternate engine available for the A320neo if P&W gets too greedy.
Kudos to Pratt. They took a huge gamble, and it’s paying off.