Wednesday, September 23, 2009

United Technologies foresees 30% cost drop for F-35 fighter engine

WASHINGTON, Sept 23 (Reuters) - United Technologies Corp (UTX.N) expects to pare costs as much as 30 percent over time on the engine it is building for the world's biggest fighter aircraft program, the board chairman told Reuters Wednesday.

The cost of the F135 engine being built by the company's Pratt & Whitney unit is at the heart of a battle with rival engine team General Electric Co (GE.N) and Rolls Royce (RR.L).

At stake is a potential $100 billion market to power Lockheed Martin's F-35 Joint Strike Fighter, the Pentagon's costliest arms-buying program. The Obama administration is seeking to terminate the GE-Rolls Royce competitor engine on the ground that it is superfluous and would not yield any cost savings.

Full story here.

1 comment:

  1. I think this will be a nice battle between companies. They will all be fighting and racing to see who can produce the best product, the quickest. With Rolls Royce out of the way and cost efficiency in mind for the US, UTC will bring to the table, exactly what the military wants for their new fighter jet. They have already had a extensive and stong relationship with the airforce, and this is just one more opportunity to help it grow.
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