Propulsion component and services supplier Avio has already started offloading some work it performs for competing engine makers as regulators continue to review a pending acquisition deal by General Electric.
Avio has agreed to sell maintenance work on turboprop engines to Madrid-based Industria de Turbo Propulsores (ITP).
ITP's Ajalvir complex in the Spanish capital will overhaul and maintain Pratt & Whitney Canada PW100 family engines after acquiring the piece of Avio's maintenance business now based in Naples, Italy.
The deal helps ITP achieve a strategic goal to increase its share of in-service support in the regional aviation market segment, the company says. It also strengthens a growing partnership between P&WC and ITP, which has also signed on as a risk-sharing partner on new aircraft engine programmes.
PW100-series engines power dozens of aircraft types produced by 10 different manufacturers, including the Bombardier Q400, ATR 72-600, Ilyushin Il-114-100 and Xian MA60. ITP expects to induct 50-60 engines a year initially, and grow to 90 engines annually in the "mid-term", averaging about €40 million ($52 million).
Since acquiring Avio in late December, GE has said it is working closely to integrate the Italian company into its operations while government anti-trust reviews continue.
GE plans to make Avio a standalone business and a centre of excellence in Turin on power transmission systems. At the same time, GE executives have said they want to increase Avio's business doing work for competitors, such as P&W and Rolls-Royce.
Source: Air Transport Intelligence news
