Pratt & Whitney Share of Jetstar Airways Order Potentially Valued in Excess of $1 Billion
Jetstar Airways, a subsidiary of Qantas Airways, has awarded International Aero Engines (IAE) an order for V2500 engines to power a new fleet of 50 Airbus A320-family aircraft, with the option to purchase V2500 engines for up to 40 more aircraft. The airline also signed a 15-year aftermarket services agreement with IAE covering these new engines, as well as V2500 engines installed on 44 aircraft the three Jetstar airlines currently operate. The value to Pratt & Whitney of the order and aftermarket agreement could exceed $1 billion if all options are exercised. Pratt & Whitney is a United Technologies Corp. (NYSE: UTX) company and a major participant in IAE.
The agreement is for the latest V2500 SelectOne™ build standard. The aircraft will be distributed among the mainline Jetstar fleet and the airline's joint ventures with Qantas, Jetstar Pacific in Vietnam, and Jetstar Asia in Singapore.
The V2500 is available in seven different thrust settings, from 22,000 to 33,000 lbs., to power the Airbus A319, A320 and A321 family of aircraft as well as the A319 Corporate Jet.
The V2500 SelectOne™ build standard delivers an additional 1 percent fuel burn advantage, along with a corresponding reduction in CO2 emissions, and it improves time on-wing by up to 20 percent, compared to a standard V2500-A5. It is compliant with the most stringent CAEP/6 NOx standards. It entered service in October 2008.
IAE is a multinational aero engine consortium comprised of Pratt & Whitney, Rolls-Royce, the Japanese Aero Engines Corporation and MTU Aero Engines. Nearly 6,000 V2500 engines are in service or on firm order with more than 190 customers around the world.
Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. United Technologies, based in Hartford, Conn., is a diversified company providing high technology products and services to the global aerospace and building industries.
This release includes "forward looking statements" concerning anticipated business opportunities that are subject to risks and uncertainties, including with regard to the contract described in this release. Important factors that could cause actual results to differ materially from those anticipated or implied in forward looking statements include changes in the health of the global economy and the aerospace industry. For information identifying other important economic, political, regulatory, legal, technological, competitive and other uncertainties, see UTC's 10-K, 10-Q and other reports filed with the SEC.