Snecma, MTU, FiatAvio and ITP have established a joint company to produce the M138 engine on offer to power the Airbus A400M military transport aircraft.
Turboprop International (TIP) is competing against Rolls-Royce's German subsidiary, proposing the BR700-TP as a development based on the common core of the BR700 turbofan family for the yet to be launched airlifter programme.
R-R began talks with the TIP alliance members this year following political pressure to come up with a joint European solution to powering the aircraft.
The UK engine builder says the TPI agreement "does not preclude" a wider grouping. "We are in negotiations on a joint bid for the A400M," says a company source.
The headquarters of TPI will be in Munich and its management team will be based in Toulouse, France, during the engine's development phase.
During the engine's development and certification phase, France's Snecma and Germany's MTU each have a 33% stake in the alliance, with Italy's FiatAvio holding 22% and ITP of Spain the remaining 12%.
The new company is responsible for the design, development, production and product support of the M138, which is based on the M88 fighter engine.
Source: Flight International