Pratt & Whitney has finalised an agreement with Singapore Airlines (SIA) to establish a new engine repair and overhaul joint venture, in what is the latest in a series of after sales support investments in Asia by competing powerplant manufacturers.
Eagle Services ASIA will be 51% owned by PW Eagle Services, with the remaining 49% held by SIA Engineering (SIAE). The two partners anticipate an initial annual revenue of $200 million from Asia -Pacific and Indian subcontinent work, "-and will grow to over $300 million beyond 2000."
The new company's capabilities will focus on the 2.37m and 2.53m- fan diameter PW4000 family, older JT9D series and CFM International CFM56 engines. Eagle Services ASIA expects to expand its competency in the future, to include possibly the International Aero Engines V2500 powerplant.
As part of the deal, SIAE will transfer most of its engine overhaul division staff and existing PW4056, PW4152, JT9D-7 and CFM56-5 work to the new company. Responsibility for SIA's Rolls-Royce Trent 800 engines will pass to a separate joint venture being negotiated by SIAE, R-R and the UK manufacturer's other Asia-based overhaul partnership, Hong Kong Aero Engine Services.
Eagle Services ASIA will face competition from General Electric's recently launched $50 million joint venture with neighbouring Malaysia Airlines. Kuala Lumpur-based Aero Engines Repair and Overhaul also specialises in PW4000 and CFM56-3 series engines. GE has also established a similar partnership with EVA Air of Taiwan.
Source: Flight International
