2007-12-16 - MTU plans investmentsMTU sees growth in engines for new regional aircraft
Triebwerkshersteller will in neue Projekte investieren<br /> MTU Aero Engines Holding AG's supervisory board in its December 14, 2007, meeting authorised the MTU management, given certain launch conditions for MTU, to take shares in envisioned engine programs for business and regional aircraft.
MTU intends to take about a 15 percent stake in each of its partner Pratt & Whitney's envisioned engine programs. If these programs go forward, they will be worth to MTU some 12 billion euros in revenue, taken over the life of the programs. These would include the following engines: PWX10 engine (10,000 pound thrust category) for emerging medium-sized and large business jets. MTU estimates that very nearly 4,000 engines of the type will be produced over the life of the program; Geared turbofan engine (GTF) for the Mitsubishi Regional Jet (MRJ), which is expected to be launched in 2008 (15,000 to 17,000 pound thrust category; estimated market volume about 1,500 engines); Geared turbofan engine (23,000 pound thrust category; estimated market volume about 3,000 engines) for Bombardier's CSeries regional aircraft, which is expected to be launched in 2008.
MTU CEO Udo Stark commented: "The regional aircraft market promises substantial growth in the years ahead. Bringing our technological know-how and financial clout to the table, we want to have a role in this new generation of engines. The expected return in this segment fully warrants the research and development investment needed." MTU intends to participate with modules according to its core competencies. Pratt & Whitney and MTU have agreed to collaborate on the above mentioned programs, according to the launch conditions. Says Stark: "By going in this direction we are continuing our long-standing and successful cooperation with Pratt & Whitney and Pratt & Whitney Canada. We are and remain a reliable part-ner for all of the three leading companies in our industry."