SIA Engineering, Pratt & Whitney Forge PW1000G Partnership
SIA Engineering (SIAEC) and Pratt & Whitney have signed a partnership deal that will see the Singaporean MRO provider participate in the PW1000G risk-revenue sharing program, SIAEC announced today. Under the terms of the deal, SIAEC will take a 3-percent stake in the PW1000G engine development for the Bombardier C Series and a 1-percent stake in the PW1000G variant under development for the Mitsubishi MRJ. SIAEC said it has incorporated two special-purpose subsidiaries to hold the investments in the respective programs.
The contract also calls for Pratt & Whitney to designate Eagle Services Asia–a joint venture between SIAEC and P&W–as the first engine center in the global MRO network planned for the PW1500G engine (the version of the PW1000G slated to power the C Series). Furthermore, the arrangement will supply business to the SIAEC/P&W engine component repair joint ventures in Singapore, SIAEC said.
“By scaling up the MRO value chain through our investments in the development of the PW1000G engine, our P&W joint ventures will benefit from the downstream MRO work,” said SIAEC chief executive William Tan. “The acquisition of new engine capabilities will also enable SIAEC to access the markets of next-generation aircraft powered by the new engines.”
SIAEC said it did not expect the transaction to materially affect its financial performance in FY2009/2010.