Pratt & Whitney and Rolls-Royce have announced a restructure of their participation in IAE International Aero Engines, which produces the V2500 engine for the A320 family of aircraft.
Under the terms of the agreement, Rolls-Royce will sell its equity and program shares in IAE to Pratt & Whitney for $1.5 billion.
Pratt & Whitney intends to discuss a possible offer of a portion of these shares with its IAE partners MTU Aero Engines and Japanese Aero Engines Corporation.
In addition, Rolls-Royce shall receive an agreed payment for each hour flown by the current installed fleet of V2500-powered aircraft for fifteen years from completion of the transaction.
Under the continuing leadership of Pratt & Whitney, JAEC and MTU, IAE will continue to deliver the same high-quality product and customer support without interruption.
Rolls-Royce remains committed to IAE and its customers and will continue to be responsible for the manufacture of high-pressure compressors, fan blades and discs as well as the provision of engineering support and final assembly of 50 percent of V2500 engines.
Since its creation almost thirty years ago IAE has become a major force in international aviation with approximately 4,500 V2500 engines in service and approximately 2,000 on order.
Pratt & Whitney is a subsidiary of a United Technologies.