Pratt & Whitney Share of China Southern Order Valued at $132 Million
China Southern Airlines has awarded International Aero Engines (IAE) an order for V2500 engines to power a new fleet of 20 Airbus A320-family aircraft. The agreement includes a long-term IAE aftermarket services agreement. The value to Pratt & Whitney of the order and aftermarket agreement is approximately $132 million. Pratt & Whitney is a United Technologies Corp. (NYSE: UTX) company and a major participant in IAE.
China Southern Airlines is one of the largest operators of the V2500 engine with 136 aircraft in service. They operated their first V2500 engine in 1996 and since that time have logged more than three million flying hours.
All of the airline's V2500 engines are covered by a long-term IAE Aftermarket Services agreement. As part of its existing aftermarket agreement, China Southern has opted to upgrade its existing V2500-A5 fleet to the new V2500 SelectOne™ build standard. Since the retrofit was introduced in late 2008, the airline has completed 26 upgrades.
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. There are more than 5,500 V2500s in service or on firm order 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.