Pratt completes IAE buyout

written by australianaviation.com.au | July 4, 2012
Pratt & Whitney has closed its buyout of Rolls-Royce's stake in IAE. Pictured is an IAE V2500 engine.

Pratt & Whitney has closed its buyout of Rolls-Royce’s shares in the International Aero Engines consortium.

“This strategic deal strengthens the presence of Pratt & Whitney and the IAE shareholders now and well into the future,” Pratt & Whitney president David Hess said. “Rolls-Royce will continue to support IAE as a strategic supplier for the V2500 engine and continue to perform its key responsibilities for IAE, including the manufacture of parts and engines.”

The other joint venture partners in IAE, Japan Aero Engines and Germany’s MTU, will maintain their interest in the company, but it is understood that Pratt will largely control the company by mid 2013.

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Pratt says that it will reveal more details about its plans for IAE at the Farnborough Air Show next week.

IAE’s  V2500 engines power MD-90s and are one of two current options on the Airbus A320 Family, while a variant has also been selected to power the Embraer KC-390 military tanker/transport.

Locally, both Jetstar and Tiger Airways’ A320s are powered by IAE engines.

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