Pratt & Whitney aims high for big-jet engine sales
Christopher Hinton
UTX unit touts its geared turbofan engine as a "game changer"
ChristopherHinton
NEW YORK (MarketWatch) -- Pratt & Whitney once dominated the commercial aircraft market with its jet engines, and it intends to do so again with a new engine design the aerospace supplier said will run more quietly and use less fuel than those offered by rivals General Electric Co. and Rolls Royce Group. A subsidiary of United Technologies Corp. UTX, +0.11%
Pratt & Whitney is developing the first geared turbofan for commercial aircraft, aiming to win contracts at Boeing Co. and EADS Co.'s (005730) Airbus unit for the aircraft makers' next-generation narrow-body planes, the widely popular aircraft used for domestic travel. Unlike typical turbofans, a geared turbofan has a gear box that allows the engine intake fan to turn independently of the low-pressure compressor and turbine, producing the same thrust with 1,500 fewer airfoils, which makes for a quieter ride and could reduce fuel burn by 12%. "The next-generation single-aisle aircraft demands something different to meet the higher operating costs the world is experiencing," said Tom Pelland, Pratt & Whitney's director of next generation products. "This is our game-changing engine." Altogether, Pratt & Whitney expects aircraft makers will demand more than 48,000 such engines over a 20-year period beginning in 2013. Geared turbofans are currently used on small aircraft such as business jets, but its complex design, longer fan width, extra weight and issues in thermal management have so far made it impractical for large commercial aircraft such as the narrow-body Boeing 737. Pratt & Whitney says it's addressed those issues with a new, smaller design for the gear box that uses lighter-weight materials and an improved cooling system. Additionally, it predicts maintenance costs for the engine will be 30% to 40% less because of the reduced number of airfoils. Within the month, Mitsubishi Heavy Industries Ltd. MHVYF, +1.39%
and Bombardier Inc. (BBD.B) selected Pratt & Whitney's geared turbofan for their latest regional jet. Though regional jets have single-aisles such as narrow-body planes, they have a smaller fuselage diameter and typically carry less than 100 people. "We believe the Pratt & Whitney geared turbofan engine offers a technological breakthrough that will provide the best economy and performance," Mitsubishi President Kazuo Tsukuda said in a statement at the time. The aircraft makers' decision provides a real-world test for the engine, which will require the airplane to be designed around its installation because its larger fan could potentially affect its center of gravity and aerodynamics, according to Bernstein Research senior analyst Douglas Harned. However, if it delivers as promised, it could open up a three-way competition with rivals GE GE, -0.87%
and Rolls Royce (RR) as Boeing draws up plans for its next narrow-body aircraft which could hit the design stage as soon as 2010, Harned said. Airbus is expected to begin designing its new airplane sometime in 2011. Harned said he has no doubt the engine will deliver on noise reduction, an important selling point as cities and municipalities tighten anti-noise laws around airports and as airliners seek more comfortable rides for its customers. While the potential for greater fuel efficiency is theoretically there. "What is unclear is how much better the performance will be relative to advanced traditional engine concepts at GE or Rolls, since both appear to be making significant improvements in performance," Harned wrote in a note to investors. Both GE and Rolls Royce have so far relied on traditional turbofan designs with their own unique modifications to increase fuel efficiency. A jet engine works by sucking air in through a series of fans that compress the air. The air then enters a combustion chamber where it is heated, expanding it rapidly to create a strong thrust and providing propulsion. Pratt & Whitney's decision to get behind the geared turbofan is a bold move, analysts say, but it's exactly the kind of move the company has to make if it wants to take market share from GE and Rolls Royce, the world's two biggest commercial aircraft engine makers. Four decades ago, Pratt & Whitney dominated the space with sales of its JT8 family of engines, still used on about a third of the world's commercial fleet, according to data from flightsupport.com. Then in 1982, CFM International, a 50-50 joint venture between General Electric and France's Snecma, came out with the CFM56, a powerful, more efficient and quieter engine, said Wayne Plucker, research manager for aerospace at Frost & Sullivan, a market research firm. The CFM56 eventually became the Boeing's engine of choice for its 737, while Pratt & Whitney didn't even make a bid, Plucker said. Boeing is still building hundreds of 737s, the most produced commercial aircraft ever. "I suspect everyone sort of left the company on autopilot," Plucker said. "They seemed unconcerned about the competition and that put them behind the power curve." Pratt & Whitney doesn't provide detail on its revenue for original equipment, which includes engines for business jets, turboprops, commercial aircraft, and military aircraft. The company currently builds a turbofan engine for the Airbus A318 narrow body, as well as three additional engine families through its joint ventures with GE and Rolls Royce.
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United Technologies Corp.
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Mitsubishi Heavy Industries Ltd.
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