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solutions, and I do believe that will
be an increasing role in future.”
P&W Sets Goal of Doubling MRO Services Business
www.AviationNow.com Sponsored by Pratt & Whitney April 2005
Jack of All Trades
Traded in for Experts
Pratt & Whitney has sharpened its
ability to respond to increasingly complex
business problems posed by its
customers. A restructuring earlier this
month of the way it discusses business
solutions will bring customers and
service-specific experts together far
sooner in the process than before.
The new structure—which amounts
to a cultural change, according to
Bill Montanile, vp for aftermarket sales—
calls on its customer general managers to
become experts on their customers’
needs rather than presenting a menu of
Pratt & Whitney products and working up
proposals. Once they have defined a customer’s
requirements they will call in the
service-specific experts to tailor solutions.
The move will give customers better
access than ever before to a broad
base of highly focused service specialists,
Montanile says.
Jim Keenan leads the MRO services group.
Pratt &Whitney MRO
“The aftermarket business is a
piece of leverage we didn’t have
five years ago. Now I can’t think
of any engine sales proposals
out there today that don’t have a
services agreement
as part of the deal,”
says Steve Heath,
president of commercial
engines at
Pratt & Whitney.
Sometimes the
proposals go further.
In its most
recent competition, to relaunch
the PW6000 engine on the
Airbus A318, Pratt is offering
to explore a partnership with
Iberia’s engine overhaul shop,
which currently handles JT8Ds,
JT9Ds and CFMs. Options
range from Iberia overhauling
PW6000s to the airline contracting
maintenance to Pratt &
Whitney.
“We knew we could not
compete with CFM’s incumbency
unless we offered other
value in the PW6000,” said
Heath. “It’s a balance of many
things.” The competition is still
open and Iberia has yet to
announce an engine selection.
Gone are the days when Pratt
sold engines and spares and provided
warranty services, leaving
MRO to others. “Services are
now a key part of our
strategy,” says Heath.
He acknowledges
the transformation
of Pratt & Whitney
into a services business,
but adds that
the company is still,
and must be, an
OEM supplier of engines.
“We will absolutely remain
so,” he said, while utilizing an
arsenal of aftermarket services
to win new engine sales campaigns.
But in illustrating how
crucial MRO services and spare
parts sales are to Pratt’s revenues
(they now account for nearly
60%), Heath noted that he routinely
has ten maintenance
proposals with airlines for every
new engine proposal he makes.
“The guy who is going to be
most successful is the one who
can manage those two businesses
on an integrated basis,”
he said.
Determined not to miss out on the next
generation of replacement aircraft for the
Airbus 320 and Boeing 737 families (the
737 is powered exclusively by CFM
International’s CFM56 engines), Pratt &
Whitney is already developing technology
for quieter, cleaner and more efficient
engines.
While the PW6000 core could possibly
be updated to form the basis for a new
engine for single-aisle airliners, Pratt sees
the future new engine program instead as
an extension of its cooperation with Rolls-
Royce (plus MTU and JAEC) in
International Aero Engines. “Within IAE
we are debating what that configuration
could look like,” said Steve Heath,
president of commercial engines at P& W.
Meanwhile Pratt will develop technologies
at NASA and with MTU utilizing the
PW6000 core, culminating in flight test of
a geared fan on a technology demonstrator
engine in 2008.
Single-aisle airliners are forecast to
make up 75% of all airliner deliveries over
the next couple of decades. The next generation
could be ready in six or seven years
time, but opposition from current fleet
owners could push that out to 2014.
Some 75% of Heath’s engineering and
development budget is being spent on new
technologies and product development,
and the remainder on product improvements
for the current fleet.
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