Rolls Royce and Pratt & Whitney have restructured their participation in International Aero Engines, and will pursue a new agreement to develop the next generation of engines for mid-sized commercial aircraft between 120-230 seats.
Under the arrangements, Pratt & Whitney will purchase Rolls Royce share of IAE for $1.5 billion, plus an agreed by the hour payment for the next 15 years for the current installed fleet. PW may, in turn, offer a portion of these shares to MTU and JAEC, other IAE partners.
The more exciting news is that PW and RR will form a new partnership to develop the next generation of engines for 120-230 passenger aircraft. The two companies will hold equal shares in this new JV.
The new JV will focus on high bypass ratio geared turbofan technology, and will collaborate on future studies, including advanced geared engines, open rotor concepts, and other advanced configurations.
The collaboration is expected to bring together complimentary technical resources and expertise, and enable the JV to benefit from each company’s relative strengths. JAEC and MTU, collaborators in the Pure Power engine for the A320 neo family, also plan to join the collaboration. Rolls Royce will also invest in the Pure Power 1100G-JM engine as a part of this transaction.
This new venture builds on the success of IAE, and enables further cooperation between Pratt & Whitney and Rolls Royce in the medium sized engine market. The selection of the PurePower Geared Turbofan architecture for the new venture is another vote of confidence in this innovative Pratt & Whitney design, now earning the endorsement and investment of Rolls Royce.
We wish them well as they move forward with innovative technology.