Pratt & Whitney has signed a preliminary agreement to invest in Singapore Airlines' (SIA) engine service-and-overhaul capability and develop it as a regional joint-venture business.
Under the memorandum signed, P&W plans to take a 51% stake in the joint venture, with SIA's engineering subsidiary holding the rest. The yet-to-be named company will focus on supporting the P&W PW4000 family, JT9Ds and CFMInternational CFM56 series, all of which are operated by SIA.
SIA will transfer its existing work to the new company, which is estimated to be worth around $185 million a year. The airline will initially account for some 70% of the new venture's business, but this will be gradually reduced as new work comes in from other carriers.
P&W's new investment in a regional engine-overhaul capability follows similar moves by other manufacturers. Rolls-Royce has joined with Hong Kong Aircraft Engineering to form a local engine overall company, specialising in Trent, RB.211 and V2500 engines. General Electric has signed joint ventures with Malaysia Airlines, Philippine Airlines and EVA Air of Taiwan to support its CF6 and CFM56 powerplants.
Source: Flight International
