While Pratt & Whitney last week purchased Rolls-Royce’s equity share of the V2500 program, it does not mean that Rolls-Royce is abandoning its involvement with the program.
Rolls-Royce will continue to be involved with the V2500 with the same level that they had prior to the buy-out. Rolls-Royce will continue to manufacture parts, assemble engines, and provide customer support.
As we understand the agreement, there will be a 12 month transition period over which management of the IAE program, currently jointly managed with individuals seconded from Rolls-Royce and Pratt & Whitney will transition to Pratt & Whitney leadership. There will likely be increased management involvement from MTU and JAEC, who are current IAE partners and being offered an opportunity to further invest in the partnership.
From a customer perspective, however, IAE will continue to provide support via Rolls-Royce facilities, and Rolls-Royce will continue to produce parts and assemble engines, as demand for the V2500 will remain strong prior to the introduction of the neo.
Changes in aerospace take time, and in this case, IAE will slowly transition its management while ensuring that the key elements to continue to produce and maintain engines, to which Rolls-Royce makes significant contributions, remain intact.
Why PW pay B$1.5 if there is no change?
@Nicolas: Of course if it does not make business sense, P&W won’t go for it. It’s the change of Rolls-Royce from owning the program to working for the program. For P&W, more shares mean more control in the decision-making process and more profit?
PW needs the RR capabilities and global span to make their GTFs a success. RR missed out on NB’s and secured a partner with a promising technology. A win-win & good deal for both.
Good point Kees