Pratt & Whitney Becomes Majority Program Shareholder in IAE

FARNBOROUGH AIRSHOW - Today, Pratt & Whitney and IAE International Aero Engines (IAE) shareholders, Japanese Aero Engines Corporation and MTU Aero Engines GmbH, announced details of the June 29 closing of Pratt & Whitney’s agreement to purchase Rolls-Royce’s program share in the IAE Collaboration. Pratt & Whitney has increased its program share to 61 percent and MTU Aero Engines has increased its program share from 11 to 16 percent via a separate risk revenue sharing agreement with Pratt & Whitney. In addition, IAE announced that the IAE board of directors has named Pratt & Whitney President David Hess Chairman of the board of directors and Jon Beatty as the new IAE president.

The program share purchased from Rolls-Royce is held by a Pratt & Whitney wholly-owned subsidiary named Pratt & Whitney Aero Engines International GmbH (P&WAEI) headquartered in Luzern, Switzerland. P&WAEI will assume responsibilities and obligations in the IAE collaboration for most parts and sourcing previously handled through Rolls-Royce.

Click here to read the Pratt & Whitney press release. 

Pratt & Whitney and Rolls-Royce Close on Deal for Program Share in IAE

Pratt & Whitney, a United Technologies Corp. (NYSE: UTX) company, closed June 29 on its agreement to purchase Rolls-Royce’s program share in IAE International Aero Engines (“IAE”). More information about the closing will be announced by IAE at the Farnborough Air Show on July 9.

Click here to read Pratt & Whitney's press release. 

Coverage:

• R-R Divests IAE Holding, Unveils Partners For New Joint Venture (Aviation Week)
• Rolls-Royce Sells Stake In IAE Collaboration for $1.5 Billion (Dow Jones)
• Pratt & Whitney closes on buyout of Rolls-Royce’s IAE shares (Air Transport World)

ATW: IAE V2500 - The Engine of Choice

Air Transport World features a video overview of International Aero Engines. The video reports that IAE was due to assemble its 5,000th V2500 engine in January. Click here to view the video via ATW online.

American Airlines Selects IAE’s V2533-A5 to Power New A321 Fleet

International Aero Engines has entered into an agreement that will enable IAE to play a key role in American Airlines’ fleet transformation. As a part of this pact, IAE will provide American’s future fleet of new Airbus A321 aircraft with its V2533-A5 engines. The financial terms and conditions of the transaction have not been disclosed.

This engine selection supports American’s July 2011 fleet order for 130 current-generation A320 family aircraft. American expects to take delivery of the A321 aircraft that are part of that order between 2013 and 2017.

Read the International Aero Engines presss release here.

Coverage:

• Dallas Morning News: American Airlines picks A319s and A321s as part of its Airbus deal
• ATW: American selects CFM56-5B-powered A319s and A321s with V2500-A5s
• Dallas Business Journal: American selects Airbus models for order
• Tulsa World: American Airlines' order for 130 Airbus aircraft launches massive fleet renewal plan