The technology for Pratt & Whitney's geared turbofan engine was 20 years in the making. Now there's a buyer.
Mitsubishi Heavy Industries of Japan picked the geared turbofan to power its twin-engine, single-aisle regional jet, currently in development, Pratt said Tuesday. The deal was announced in Tokyo with Pratt's president, Stephen N. Finger, on hand.
Mitsubishi is both the first aircraft maker to adopt the geared turbofan -- which has been especially promoted for its fuel efficiency -- and the first Japanese company to develop a new commercial jet from scratch in more than 30 years. The plane would seat 70 to 90 passengers. First deliveries are expected around 2013.
Pratt envisions a family of geared turbofan engines that could power single-aisle aircraft of various sizes. Single-aisle aircraft make up the biggest part of the airplane market. Mitsubishi has selected an engine that develops 15,000 to 17,000 pounds of thrust, Pratt said.
In a geared turbofan, a gear system allows the spinning fan at the front of the engine to operate independently of the rear compressor and turbine, resulting, the company says, in lower levels of engine noise, emissions and maintenance and fuel costs.
Rolls-Royce and General Electric -- Pratt's major competitors in the jet engine business, and sometimes its partners -- are also trying to develop new types of ultra-fuel-efficient jet engines for the next generation of single-aisle aircraft. Given the high cost of fuel, which shows no sign of falling, airlines are eager for savings.
Pratt and Mitsubishi did not disclose the terms of their deal. A Pratt spokeswoman said it was not for a fixed number of aircraft or fixed dollar amount.
Mitsubishi predicts demand for about 1,000 of its regional jets over 20 years, but the company has just begun trying to sell them and will face stiff competition from established players in that market, including Bombardier of Canada and Embraer of Brazil.
Analysts speculated that Mitsubishi picked Pratt's geared turbofan engine -- which is still in its test phases -- partly to distinguish its product from those of competitors.
``They need a technological discriminator,'' said Richard Aboulafia of Teal Group, who called the Mitsubishi deal ``a nice endorsement'' for Pratt's geared turbofan.
But analysts also cautioned that the market for next-generation, single-aisle aircraft is up in the air. Neither Boeing nor Airbus, the goliaths of the airframe industry, has committed to replacing their incumbent 737 and A320 models. Through a partnership, Pratt offers the V2500 engine for the A320; it does not make an engine for the 737.
Mitsubishi, meanwhile, is counting on the Japanese government to help underwrite the development of its regional jet but doesn't have a commitment in hand yet, according to Japanese news reports.
Mark Bobbi, an aerospace consultant based in Prospect, also questioned whether the 12 percent fuel efficiency improvement Pratt claims for the geared turbofan will be enough.
``I don't think the geared turbofan -- as good as it is -- gives the airline customers enough of a reason to want a new airplane,'' he said.
Boeing's 737 and Airbus' A320 are still selling in great enough numbers that they are not under pressure to develop replacements. Bobbi doesn't expect the airframe makers to start developing replacements until 2010 or 2012, which means the aircraft wouldn't enter service until 2015 or 2017.
A unit of Hartford-based United Technologies Corp., Pratt has not yet decided where to manufacture its geared turbofan engines, Todd Kallman, president of commercial engines, said Tuesday.
UTC shares rose 1 percent Tuesday to $81.20. The company plans to disclose its third-quarter earnings on Oct. 17.
Contact Eric Gershon at [email protected]
