Rolls-Royce plans to sell its equity and program shares in IAE to Pratt & Whitney for $1.5 billion as part of a restructuring that would see the two companies enter a new partnership to develop an engine to power a future midsize aircraft. Under the proposed deal, the companies would collaborate on high-bypass-ratio geared turbofan technology as well as studies for so-called next-generation propulsion systems, including advanced geared engines and open-rotor technology. Rolls-Royce has also agreed to make a “modest” investment in the PurePower PW1100G geared turbofan for the Airbus A320neo.
The proposed contract calls for Rolls-Royce to receive an agreed payment for each hour flown by the current installed fleet of IAE V2500-powered aircraft for 15 years from completion of the transaction. Meanwhile, Pratt & Whitney intends to offer Rolls-Royce’s share in IAE to the joint venture’s other partners—MTU Aero Engines and Japanese Aero Engines Corp. (JAEC). Rolls-Royce will continue to carry responsibility for the manufacture of high-pressure compressors, fan blades and discs as well as the provision of engineering support and final assembly of 50 percent of V2500 engines.
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