Air New Zealand today announced that the airline will extend the level of interest it currently has in the Christchurch Engine Centre’s V2500 maintenance, repair and overhaul (MRO) facility - a joint venture partnership with Pratt & Whitney from ten to 49 percent in a deal worth US $7.8 million. Further future investment in the joint venture is expected to occur as the business develops and grows.
Air New Zealand retains its 49 per cent interest in the other arm of the joint venture, the Pratt & Whitney JT8D and Rolls Royce Dart MRO facility at the Christchurch Engine Centre.
At an official function in Christchurch to mark the opening of the Centre’s V2500 Engine Shop and Test Cell, Air New Zealand Managing Director & CEO, Ralph Norris said the airline welcomed the opportunity to consolidate its commercial relationship with Pratt & Whitney.
“Air New Zealand’s partnership with Pratt & Whitney has been a robust one. The joint venture was established in April 2001 and two years ago in December 2002, we announced the expansion of the Christchurch Engine Centre with the development of a V2500 maintenance facility.
“This is indeed an excellent facility and the operation, which is expected to generate cumulative earnings before tax in excess of US$50 million for the joint venture over the next ten years, will be a significant contributor to business within the Christchurch region", said Mr Norris.
The V2500 project was initiated by the JV following Air New Zealand’s selection of the International Aero Engine (IAE) V2500 to power its new Airbus A320 aircraft - nine of the 15 on order have been delivered to date. The facility and its capability of overhauling V2500 products will be marketed to other airline operators, in particular those within the Asia Pacific region.
Air New Zealand established the joint venture with Pratt & Whitney in April 2001 and it is governed by a separate Board with representatives from both companies.
Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines.
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