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Rolls Royce buys Pratt Whitney
Rolls Royce announced today (7 May 2010) it would buy Pratt Whitney large commercial engines division for US$500 million, because of low sales of Pratt Whitney large commercial engines & serious financial loss since 2004.
The other divisions of Pratt Whitney, would not be purchased by Rolls Royce.
Most analysts found that Pratt Whitney's decison of producing PW6000 engines for exclusive use by Airbus A318 instead of producing lower power versions of V2500 by Inernational Aero Engines (Rolls Royce, Pratt Whitney, MTU of Germany & Japanese Aero Engines Corporation joint venture) for Airbus A318 makes no airline chooses PW6000 engines due to lack of commonality with V2500 engines & high operational cost.
They said the GP7000 engine made by Engine Alliance (General Electric & Pratt Whitney joint venture) for Airbus A380 has design totally different to other Pratt Whitney & General Electric engines, compared to commonality design of Rolly Royce Trent 900 engines with other Rolls Royce Trent engines, so making very few airlines choose the engine option (100 GP7000 engines vs 1200 Trent 900 engines ordered.)
Both makes the sales of Pratt Whitney engines very low & hence serious financial loss for the company.
Rolls Royce announced all Pratt Whitney large commercial engines orders, except V2500, would not be accepted since tomorrow (8 May 2010). The Pratt Whitney engines ordered before the date, however, would be produced.
Rolls Royce also announced that it would produce a new type of 20000-35000lb thrust class very high bypass ratio turbofan called R3000 to replace the existing V2500. The orders for V2500 engines would be accepted until 31 Dec 2012. The orders for the R3000 engines are accepted now onwards, and the first engine would be delivered in late 2013. The International Aero Engines company would have its business stopped from 1st Jan 2014 when the 30-year collaboration agreement for the consortium is ended.
Pratt Whitney would still be responsible for customer support of existing Pratt Whitney large commercial engines.
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