Pratt & Whitney purchases Rolls-Royce’s IAE shares; companies also form new next-gen engine partnership

  • 19-Oct-2011 02:51 EDT

The V2500 engine, produced by IAE International Aero Engines AG (a multinational consortium led by senior shareholders Rolls-Royce and Pratt & Whitney, together with JAEC and MTU Aero Engines), is available for the A319, A320, A321, and Airbus Corporate Jetliner aircraft.

Pratt & Whitney and Rolls-Royce have restructured their participation in IAE International Aero Engines AG, which produces the V2500 engine for the A320 family of aircraft. Under the terms of the agreement, Rolls-Royce will sell its equity and program shares in IAE to P&W for $1.5 billion. P&W intends to discuss a possible offer of a portion of these shares with its IAE partners—MTU Aero Engines AG and Japanese Aero Engines Corp. (JAEC). P&W and Rolls-Royce also announced an agreement to form a new partnership to power future midsize aircraft (120-230 passenger aircraft). The two companies will establish a joint venture company, in which each will hold an equal share, to develop new engines for the next generation of aircraft that will replace the existing midsize fleet. This new JV will focus on high-bypass ratio geared turbofan technology. In addition, the venture will collaborate on future studies for next-generation propulsion systems, including advanced geared engines, open rotor technology, and other advanced configurations.

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