This is a transformational time for Pratt & Whitney, with new engines under development that will define the company for the next 20-30 years, says P&W President David Hess.
The company’s $13 billion in annual revenue should almost double in size to $24 billion by 2020, “based on programs we’ve won and on aircraft delivered, not what we might win,” Hess says. “We’re seeing double-digit growth in all three engine sectors – military, commercial and Pratt & Whitney Canada, as well as aftermarket.”
The company’s resurgence can be attributed to an aggressive posture both in attitude and technology, as well as the culmination of long-term engine development that spans more than a decade.
So far this year P&W has won sole source on theJoint Strike Fighter; captured its biggest commercial order in more than 50 years with IndiGo signing up for 300 geared turbofan (GTF) engines for its fleet; and bought out ’s share of the International Aero Engines consortium that produces the turbofan.
“Now we will double our revenues from IAE with the Rolls-Royce share,” Hess says. “We’ll book another 1,000 V2500s by 2018 [when A320NEO production will be in full swing and the classic V2500-powered A320 almost phased out] for a total of 8,000 IAE engines in service.” This installed base will support strong growth in aftermarket sales, which today represent more than half of P&W’s revenues.
But the PurePower geared turbofan is the company’s shining star.
“It’s been 15 years since we sent a new large commercial engine to test,” says Hess. “We’ve sent two to test this year [for theand ], and later this year we will run the engine for the NEO. We’re building the future for our large commercial engine business.”
Buying out Rolls-Royce from IAE brought marketing firmly into the hands of P&W. This allowed it to leverage deals for V2500s with GTFs, as customers ordered both to transition their fleets from conventional-engined A320CEOs to NEOs. This, says Hess, leveled the playing field as rivalcountered with traditional and new Leap engines.
The IAE deal also brought to P&W another 100 potential GTF customers with which it had no previous relationships, as sales efforts at IAE and P&W were firewalled. “The deal really strengthens our brand and reach,” says Hess.