Procurement News Notice |
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| PNN | 6631 |
| Work Detail | Pratt & Whitney is ready to move beyond problems with its new engine programs and to shift into high gear on both the commercial and military side of its business. That’s the assessment of Richard Pettibone, aerospace and defense company analyst for Newtown-based Forecast International. The recent boom in commercial aircraft orders — driven by airlines’ desire for more fuel-efficient airlines — has started to taper off, Pettibone said in his Aug. 31 analysis. The aerospace industry now is turning toward fulfilling the “tremendous backlogs” of engine orders accumulated at Airbus Industrie and The Boeing Co., he said. Pratt had strengthened its commercial operations, which in the past had not been as robust as its military engine business, Pettibone said. In 2012, he noted, Pratt bought out Rolls-Royce’s one-third share of its International Aero Engines partnership, giving Pratt majority ownership of IAE, which makes a V2500 engine line for the Airbus A320. IAE also involves minority partners Japanese Aero Engines Corp. and Germany’s MTU Aero Engines. With Pratt’s new PW1100G geared turbofan engine, the company could offer customers two options for engines, Pettibone said. That helped Pratt to compete with CFM International, a partnership of GE Aviation and Snecma of France, its major rival in the A320 market. The geared engine is the “cornerstone product” of Pratt’s commercial strategy, Pettibone said. The engine offers double-digit improvements in fuel consumption, lower environmental emissions, less engine noise, and lower operating costs. That program now is in “high gear,” he said, with five variations in development, one each for Mitsubishi’s MRJ, the Bombardier CSeries, Airbus’ A320neo, Embraer’s E2 family, and Russia’s Irkut MC-21 jet. Pratt estimates that the geared turbofan line could earn as much as $325 billion over time. That has guided Pratt’s management to set a goal of doubling revenue to $24 billion over the next eight years, Pettibone said. The emerging success comes only after what he called “teething issues” that are being resolved through hardware and software updates and that now have deliveries starting to “ramp up.” Issues with the new geared engine included “temperature-induced” engine shaft bending, which initially meant extended start-up times. A second issue was “false warning indications sent to the pilots’ displays” by the engine control software. Now that those have been dealt with, he said, Pratt also stands to benefit “further down the line” when the engines will require maintenance, or what the aerospace industry calls “aftermarket” service and parts. “As airlines keep flying at a steady pace, the need for maintenance and spares will remain solid,” Pettibone said, adding Pratt “has been investing in partnerships and joint ventures worldwide” to meet that need. On the military side, Pratt continues to be in a strong position, he said. The company’s F135 military engine is the sole power source for the F-35 Joint Strike Fighter, which is the U.S. Air Force’s largest new engine program. Added to that is Pratt’s position as sole provider of engines for the new KC-46A refueling tanker plane as well as for the planned B-21 Long Range Strike Bomber. “These opportunities will be critical for Pratt’s military engine operations,” Pettibone said, as its older engine programs for existing military planes end production and move into strictly maintenance and repair status. |
| Country | United States , Northern America |
| Industry | Defence |
| Entry Date | 15 Oct 2016 |
| Source | http://www.journalinquirer.com/business/analyst-pratt-shifts-into-high-gear-with-commercial-engines/article_243c26e4-7140-11e6-890a-83f28c267c40.html |
