The announcement of the new joint venture between Rolls-Royce and Pratt & Whitney was hardly a statement of marriage, but the vows made by the two aero-engine giants on October 12 nevertheless marked the securing of their long-term future in the huge market for mid-sized aero-engines up to 2030.
The deal provides for future joint development of engines to power the forthcoming replacements for the Airbus A320 and Boeing 737 and aircraft up to the size of the Boeing 757. It also includes the sale of Rolls-Royce’s stake in International Aero Engines (IAE), at once providing a useful $1.5 billion payment from P&W for R-R’s share in the venture. Long-term support of the V2500 engine for existing operators is now covered, and Rolls-Royce receives an agreed payment for each hour flown by the current installed fleet of V2500-powered aircraft for 15 years from completion of the transaction.
