Pratt & Whitney, a unit of diversified conglomerate
United Technologies Corp.
), has finalized several contracts to deliver engines exclusively
to Azul and Philippine Airlines, and via the International Aero
Engines (IAE) consortium to SaudiGulf Airlines and International
The Azul & Philippine Contracts
Pratt & Whitney, a leading aircraft engines manufacturer, will
supply exclusive power for 30 firm Embraer E-Jets E2 aircrafts
under a contract proposed by
) and Azul Brazilian Airlines. Azul, the third largest airline in
Brazil and a favored low-cost carrier in Latin America, has
witnessed remarkable growth in the past six years. The company
chose Pratt & Whitney's PurePower engines to gain considerable
operational and cost benefits.
Separately, Philippine Airlines inked a Letter of Intent to use
Pratt & Whitney's PurePower engines to power its 10 Airbus
A320neo aircrafts. In the process of modernizing its fleet, the
73-year old airline has chosen these engines to improve fuel
efficiency and reduce operational expenses. The Letter of Intent
includes a long-term maintenance service agreement.
Shareholders of IAE, a multinational aero engine consortium,
include Pratt & Whitney, Pratt & Whitney Aero Engines
International GmbH, Japanese Aero Engines Corporation and MTU Aero
IAE's contract with SaudiGulf Airlines requires the former's V2500
engine to power four A320ceo aircrafts and includes an eight-year
V-ServicesSM maintenance service agreement. SaudiGulf, a new
airline set to start operations in 2015, has selected IAE to
develop a quality fleet with state-of-the-art technology.
Further, IAE signed a memorandum of understanding with
International Airlines Group wherein it will supply V2500 engines
to power 30 A320ceo aircrafts for Vueling Airlines, a subsidiary of
International Airlines. A premium low-cost carrier, Vueling
Airlines seeks to leverage the engines' low carbon-emission
capability and fuel efficiency to trim costs and generate
In order to meet the escalating demand for its engines, United
Technologies recently signed a 10-year deal valued at over $1
billion with Firth Rixson, wherein it will supply engine and system
components for Pratt & Whitney and UTC Aerospace Systems - two
operating segments of United Technologies.
United Technologies is planning a global-scale ramp-up in its
commercial and military production, so as to capitalize on robust
growth opportunities foreseen in the aerospace industry.
United Technologies currently has a Zacks Rank #2 (Buy). Other
stocks that look promising include
Noble Group Ltd.
), sporting a Zacks Rank #1 (Strong Buy), and
Hutchison Whampoa Limited
), carrying a Zacks Rank #2 (Buy).
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