Pratt & Whitney has opened negotiations to purchase Indonesia's Universal Maintenance Centre (UMC) from IPTN to complement its joint venture with Singapore Airlines (SIA) and join the US manufacturer's planned global engine overhaul and maintenance network.
Cash-strapped IPTN is looking to sell its Bandung-based subsidiary as part of a wider effort to restructure the state-run aerospace company. General Electric, which helped establish UMC and Rolls-Royce, are believed to have also looked at the engine repair and overhaul facility.
"We're talking to them now," confirms P&W president Karl Krapek. " First we would try to help them make it more productive, just as GE did, and we would love to buy it, but negotiations have just barely started."
Krapek adds that the attraction of UMC to Pratt & Whitney would be as a regional shop, building on its existing JT8D engine overhaul capability.
UMC would complement the company's newly established joint venture with SIA Engineering (SIAE), Eagle Services Asia. The company, in which P&W owns a controlling 51%, is focusing on PW4000, JT9D and CFM International CFM56 engines.
The East Hartford, Connecticut-based company already has three smaller component joint ventures with SIAE and Singapore Technologies and is looking for additional business opportunities in Asia. "This is just the start, this is the centrepiece for Asia. From here we go to other airlines in Asia, besides going after third party work. SIA will be our partner throughout Asia," says Krapek.
As with Eagle Services Asia, P&W is insisting on owning at least 51% of any new joint venture to make it an integral part of its worldwide network. Other on-going regional discussions, reveals Krapek, include "-talking to at least three airlines in China as to how we can put together a couple of their shops and how we can make this part of the Asian network".
Beyond that it is planning to establish a presence in Africa, Europe and South America. "Within the year we will announce a similar venture in Europe with a major carrier and you'll see a lot of activity in the USA," he says.
Source: Flight International
