GUY NORRIS / LOS ANGELES

Cost-cutting and marketing reasons cited for decision to transfer engine to MTU

Pratt & Whitney is transferring final assembly and test of production PW6000 engines to MTU in Germany as part of cost-cutting and marketing efforts to improve its sales potential on the Airbus A318. While MTU assembles several military engines for the German air force, including the Eurofighter Typhoon's Eurojet EJ200, the PW6000 will be the first civilian engine it has assembled.

P&W says its "business decision" reflects the tough marketing position of the long-delayed engine, the revamped version of which is scheduled to fly for the first time on the A318 in the fourth quarter of 2004. The rival CFM International CFM56-equipped version of Airbus's smallest product entered service last year.

"The PW6000 will enter the market at one of the most difficult times in commercial aviation history," says P&W, adding that assembly in Germany will improve "our position in the vital European Union market. The EU's growing economic strength means European content is vital to selling our engines there." MTU says it has a line that will be used for the PW6000 work, allowing it to undercut P&W itself for final assembly.

P&W says: "MTU came to us with a very competitive offering." It says assembly represents only around 5% of the value of the engine.

The German manufacturer already has a 33% share of the PW6000 including the six-stage high-pressure (HP) compressor and the low-pressure turbine. P&Wadds that it is "MTU's compressor that allows us to bring the engine into service a year and a half earlier than we could have done on our own".

The UScompany was forced to switch to a new compressor design after the initial engine failed to meet ambitious performance targets.

MTU will assemble the engines at Hanover, on a "flowline" now used for engine disassembly, maintenance and reassembly. Initial production rate will be 20-30 engines a year, MTU says. Production of the initial engines is due to start in Germany in late 2004. America West is the only airline customer.

Source: Flight International