July 9, 2012

Aero CT's orders in billions on British air show's 1st day

Contributed photo
Contributed photo
Pratt & Whitney Commercial Engines President Todd Kallman (center left) with Candice Iyog, vice president of marketing for Cebu Pacific. Cebu will purchase Pratt's PurePower engine for up to 40 Airbus A321neo narrowbody aircraft.

Connecticut's aerospace industry struck it big Monday during the first day of Britain's Farnborough Air Show, as several major aeroparts makers announced 18 new orders and agreements totaling several billion dollars.

Hartford conglomerate United Technologies Corp. aerodivisions, such as East Hartford's Pratt & Whitney, Stratford's Sikorsky Aircraft and Windsor Locks' Hamilton Sundstrand and their partners, racked up 12 orders.

The aerospace division of Fairfield conglomerate General Electric Co. announced six orders of its own.

Farnborough is the show site every other year, and aerospace companies announce their new deals during the event, even though they work on finalizing the deals throughout the year. The Paris Air Show is held in alternating years, and aerospace companies make announcements there as well.

GE Aviation made the first big announcement of the show. CFM – the company's partnership with French engine designer Snecma – scored a $1.9 billion deal with the Air Lease Corp. to provide CFM's LEAP for 75 Boeing 737MAX narrowbody aircraft.

CFM and Pratt are rolling out competing engines for narrowbody passenger aircraft, such as Boeing 737MAX and Airbus A320neo. Both engines – using different technology – increase fuel efficiency, decrease emissions and reduce noise. The market for these competing engines is expected to be $336 billion over the next 10 years.

Pratt made several announcements of its own during the opening moments of Farnborough for its narrowbody engine – PurePower, a version of its geared turbofan design.

Pratt finalized an agreement with IndiGo for 300 PurePower engines and a long-term maintenance agreement. Pratt finalized another agreement with the CIT Group for 60 PurePower engines. Norwegian Air Shuttle ordered PurePowers for 50 Airbus A320neo aircraft. Cebu Pacific Air of the Philippines ordered PurePower engines for up to 40 Airbus A320neos and a long-term maintenance agreement. None of the financial terms were disclosed for these deals.

Other UTC and GE deals announced on Monday include:

- Pratt signed a three-year engine management program agreement with Shanghai Airlines for engine on 10 Boeing 757s. Financial terms were not disclosed.

- Pratt delivered the first engines for the Boeing C-17 Globemaster III transportation aircraft, slated to be delivered to India's Ministry of Defense in 2013. Financial terms were not disclosed.

- Pratt signed a 10-year agreement with Israel Aerospace Industries to designate the Israeli company as a service provider for Pratt's JT9D engine family maintenance. Financial terms were not disclosed.

- International Aero Engines – Pratt's consortium with Japan Aero Engines Corp. German manufacturer MTU Aero Engines AG – signed a $90 million deal to provide V2500 engines to ICBC Financial Leasing Co. for five Airbus A320s.

- IAE signed a $250 million maintenance agreement to support the 16 Airbus A321s in Monarch Airlines' fleet.

- Hamilton Sundstrand expanded its operations and supply chain to support Boeing's production of the 787 Dreamliner. Hamilton already has delivered 60,000 parts of 85 sets of aircraft. The 787 is expected to generate more than $15 billion for Hamilton over the life of the program.

- Hamilton signed a long-term, $33.2 million agreement with Fokker Services to provide spare parts to support components repaired by Fokker through 2016.

- Sikorsky signed a memorandum of understanding with INAER Maintenance SAU of Spain to explore aircraft maintenance and support opportunities.

- GE Aviation signed a 12-year, $300 million agreement with EVA Airways to provide maintenance, repair and overhaul of engines on the Boeing 777-300ER.

- GE Aviation signed a 10-year, $150 million agreement with Jet Airways to provide maintenance, repair and overhaul of engines on the Airbus A330-200 aircraft.

- GE Aviation signed an agreement to the Royal Air Force of Oman to provide engines on 12 Lockheed Martin F-16 Block 50 aircraft. Financial terms were not disclosed.

- GE Aviation announced its plans to study advanced technologies for the next generation of engine to power Boeing's next generation 777 aircraft.

- CFM launched a new product to allow leasing companies to control maintenance costs over the life of an aircraft. GE will partner with SMBC Aviation Capital on the product.

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