DaimlerChrysler, former parent company of MTU Aero Engines, has paid $250 million to United Technologies (UTC), which owns MTU's long-term partner Pratt & Whitney. UTC says that in return for the money, it "has released DaimlerChrysler from certain commitments previously made in support of MTU" and will use the money to restructure and cut costs. Neither MTU, new owner KKR, DaimlerChrysler nor UTC have given details of the commitments, but analysts believe that the payment was connected to Pratt & Whitney's development of industrial power-generating turbines based on the JT8Daero-engine, in which MTU is a 12.5% risk-sharing partner. Were MTU's new owners to decide to scale back participation in the JT8D project, P&W could have to take the work in house, at some expense, they believe.
Source: Flight International
