Engineering deal boosts Air NZ coffers

By Phil Boeyen, ShareChat Business News Editor

Monday 30th April 2001

Air New Zealand (NZSE: AIRVA) will make an $18 million profit on an engineering joint venture with US engine Pratt
& Whitney.

As part of the deal, which will see a new engineering centre established in Christchurch, Pratt & Whitney will pay Air New Zealand more than US$28 million for its share of the engineering business.

Air NZ boss Gary Toomey says up to 300 Christchurch engineering employees will transfer from Air New Zealand to the new organisation.

"The joint venture with Pratt & Whitney creates a new future for the airline's Christchurch facility and the region.

"The capital investment into the region will provide the opportunity to grow third party work building on the international reputation of the Christchurch facility, developed the past ten years as a professional and successful maintenance, repair and overhaul business."

Mr Toomey says overhauls of the new V2500 engine type brought to the venture by Pratt & Whitney will result in a predicted revenue growth from US$80 million to US$170 million over five years.

Pratt & Whitney already offers engine overhauls at facilities in Connecticut, Georgia, Texas, Singapore, Norway and Saudi Arabia.

Comments from our readers

No comments yet