RTX's Pratt & Whitney Canada adds helicopter engine overhaul capability at Singapore facility

Rhea-AI Summary

Pratt & Whitney Canada, an RTX business, is expanding its MRO capabilities by creating a new overhaul line in Singapore for PT6C-67C engines, serving over 300 AW139 helicopters globally. The new facility will enhance maintenance solutions for the engine, with a modular test cell expected to be operational by 2025. With over 600 engines in service in the Asia-Pacific region, the expansion aims to meet the growing demand and evolving needs of customers worldwide.

Positive

• Expansion of MRO capabilities for PT6C-67C engines by Pratt & Whitney Canada in Singapore.
• New overhaul line and test cell to be fully operational by 2025, catering to over 600 engines in the Asia-Pacific region.
• Enhanced maintenance solutions and increased customer proximity to meet growing demand globally.
• Singapore facility to become a central hub for Pratt & Whitney Canada engine operators in the region.

Negative

• None.

Insights

Market Research Analyst

The expansion of Pratt & Whitney Canada's MRO capabilities in Singapore is a strategic move that caters to the increasing demand for the PT6C-67C engine services in the Asia-Pacific region. The decision to establish a new overhaul line and modular test cell is indicative of the company's commitment to enhancing its service offerings and customer proximity, which is crucial in the competitive aerospace industry. This move could potentially increase Pratt & Whitney's market share in the region and improve its response times to service requests, thereby enhancing customer satisfaction and loyalty.

From a market perspective, the addition of the new MRO line in Singapore is likely to attract more regional customers due to the reduced turnaround times for engine maintenance. This expansion may also lead to increased employment opportunities and economic growth within the local Singaporean market, as well as bolster the company's reputation as a leader in aerospace MRO services.

Financial Analyst

The establishment of a new MRO line by Pratt & Whitney Canada represents a significant capital investment that reflects the company's long-term strategy to expand its global footprint. The decision to invest in the Asia-Pacific region is likely based on an analysis of the growing aviation market, particularly the demand for the AW139 helicopters powered by PT6C-67C engines. By enhancing its MRO capabilities, Pratt & Whitney Canada is positioning itself to capture a larger share of the aftermarket services, which are a recurring revenue stream and typically have higher profit margins than the original equipment manufacturing.

Investors should monitor the operational efficiency and utilization rates of the new Singapore facility once it becomes fully operational. Successful execution could lead to improved financial performance for the parent company, RTX and contribute positively to its stock valuation. However, investors should also consider the risks associated with such expansions, including potential regulatory challenges and the need to maintain high-quality service standards to protect the company's brand and market position.

Aerospace Industry Expert

The PT6C-67C engine is a widely used powerplant in the Leonardo AW139 medium-twin helicopter, which is popular for a variety of uses, including emergency medical services, search and rescue and offshore transport. The establishment of a new overhaul line specifically for these engines in Singapore demonstrates Pratt & Whitney Canada's focus on supporting a critical sector of the aerospace market. The modular test cell component of the expansion is particularly noteworthy as it represents the company's investment in state-of-the-art technology to ensure the reliability and efficiency of its maintenance services.

The strategic location in Singapore, a key aviation hub for the Asia-Pacific region, not only provides logistical advantages but also underscores the importance of the region in the global aerospace sector. The facility's proximity to key markets like Australia and New Zealand, as well as the broader Asia-Pacific region, is expected to streamline operations for regional customers and could set a new industry standard for MRO service delivery.

New MRO line will serve over 300 PT6C-67C-powered AW139 helicopters globally

SINGAPORE, Feb. 19, 2024 /PRNewswire/ -- (SINGAPORE AIRSHOW) -- Pratt & Whitney Canada announced today it will expand its maintenance, repair and overhaul (MRO) capabilities by creating a new overhaul line in Singapore for its PT6C-67C engines, which power the Leonardo AW139 medium-twin helicopter. Pratt & Whitney is an RTX (NYSE: RTX) business.

The Singapore facility was chosen as the location for the new overhaul line in response to a growing demand for advanced maintenance solutions for the P6TC-67C engine and the evolving needs of customers around the world. A new modular test cell will also be established at the facility as part of the new capability setup. The new overhaul line and test cell are expected to be fully operational by 2025.

"Our Singapore facility provides a variety of comprehensive service solutions and MRO capabilities for customers in the Asia-Pacific," said Irene Makris, vice president, Customer Service, Pratt & Whitney Canada. "There are over 600 PT6C-67C engines in service in the region, and we expect that number will continue to grow. We continue to build our presence globally to ensure we provide rapid, top-quality services to operators by optimizing operations, creating capacity, and increasing customer proximity."

Pratt & Whitney Canada's Singapore facility currently provides overhaul-level services for the PW100 family of regional turboprop engines, repair capabilities for a variety of the company's other turboprop, turbofan, and turboshaft engines, and for its APS3200 auxiliary power unit for the Airbus A320. Additionally, it serves as a regional customer service center and provides front-line support, commercial services, and mobile repair team capabilities for customers. The introduction of the new line will complement the existing overhaul capability of the Saint Hubert Engine Center in Canada, providing an additional option for PT6C-67C customers globally.

Since its founding in 1983, the Singapore facility has grown into a central hub for all Pratt & Whitney Canada engine operators in the region which includes Australia and New Zealand. There are currently over 10,000 Pratt & Whitney Canada engines in service across the Asia-Pacific region, powering approximately 6,500 aircraft flown by 1,400 customers.

About Pratt & Whitney

Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines and auxiliary power units. To learn more, visit www.prattwhitney.com.

About RTX

RTX is the world's largest aerospace and defense company. With more than 185,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. Through industry-leading businesses – Collins Aerospace, Pratt & Whitney, and Raytheon – we are advancing aviation, engineering integrated defense systems for operational success, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2023 sales of $68.9 billion, is headquartered in Arlington, Virginia.

For questions or to schedule an interview, please contact corporatepr@rtx.com.

 

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SOURCE RTX

FAQ

How many PT6C-67C-powered AW139 helicopters will the new MRO line serve globally?

The new MRO line in Singapore will serve over 300 PT6C-67C-powered AW139 helicopters globally.

When is the new modular test cell expected to be operational?

The new modular test cell at the facility is expected to be fully operational by 2025.

How many Pratt & Whitney Canada engines are currently in service across the Asia-Pacific region?

There are currently over 10,000 Pratt & Whitney Canada engines in service across the Asia-Pacific region, powering approximately 6,500 aircraft flown by 1,400 customers.

What other services does the Singapore facility currently provide?

The Singapore facility currently provides overhaul-level services for the PW100 family of regional turboprop engines, repair capabilities for various other engines, and serves as a regional customer service center.

Why was Singapore chosen as the location for the new overhaul line?

Singapore was chosen due to the growing demand for advanced maintenance solutions for the PT6C-67C engine and evolving customer needs globally.

What is the main goal of the expansion of MRO capabilities by Pratt & Whitney Canada?

The expansion aims to optimize operations, create capacity, and increase customer proximity to provide rapid, top-quality services to operators.

Which aircraft is powered by the PT6C-67C engines?

The PT6C-67C engines power the Leonardo AW139 medium-twin helicopter.

What additional option will the new overhaul line in Singapore provide for PT6C-67C customers globally?

The new line will complement the existing overhaul capability of the Saint Hubert Engine Center in Canada, providing an additional option for PT6C-67C customers globally.