Oklahoma-based structures supplier Nordam has suspended production of nacelle systems for the Pratt & Whitney Canada PW800 engines due to a contractual dispute.

The PW800 turbofan is the propulsion system for the Gulfstream G500 and G600. The former was scheduled to enter service at the end of last year, but is still waiting to claim an airworthiness certificate from the US Federal Aviation Administration.

“After months of unsuccessful attempts to resolve a contract dispute with Pratt & Whitney Canada, we have suspended production on the Gulfstream G500/G600 aircraft programme where Nordan has developed and is producing the aircraft’s nacelle system components,” Nordam chief executive Meredith Madden says.

P&WC signed a contract with Nordam in 2010 to design and build the inlet, nacelle, thrust reverser and other components for the PW814 and PW815 engines.

In April, Greg Hayes, the chief executive of P&WC parent United Technologies, disclosed to stock market analysts that “some work” was still necessary on the nacelle. But Hayes added that he doesn’t “think there’s any drama there”, and the G500 would enter service with the PW800 engine this summer.

Less than three months later, Nordam’s CEO says the contract issues with P&WC over the PW800 nacelle threatened to “negatively impact” other parts of the company.

“To that end, we are doing what is necessary to remain financially secure, serve our customers and protect the reputation we have earned over 50 years in the aerospace industry,” Madden says.

Source: FlightGlobal.com