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Is P&W's F135 crystal ball half-full -- or half-empty?

Pratt & Whitney is building capacity to produce a maximum of 120 F135 engines in 2016 to support the Lockheed Martin F-35 programme, Pratt & Whitney military executive Tom Farmer told my colleague John Croft last week.

I think that's an interesting data point as Congress debates the future of the F136, the General Electric and Rolls-Royce team's alternate engine.

We know that Lockheed plans to build about 240 F-35s in 2016.

This means P&W would need to dramatically increase production capacity if the F136 is canceled. This is a perhaps hidden cost if Congress fails to restore funding for the alternate engine.

On the other hand, if the F136 survives, P&W's projected output means the company is anticipating a 50-50 split at peak production levels. To me, that does not sound like a ringing endorsement of the competition strategy.

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