Pratt & Whitney In Hot Seat As Airbus Profits Fall (excerpt)
(Source: Reuters; published July 27, 2017)
By Tim Hepher and Cyril Altmeyer
PARIS --- Airbus turned up the heat on engine maker Pratt & Whitney over delays that have disrupted its biggest production line after reporting a sharp drop in mid-year profits on Thursday.

The European planemaker also said it would cut output of the A380, the world's biggest jetliner, to just eight from 2019, putting on life support a project that has been undercut by a generation of nimbler, fuel-efficient long-haul planes.

Airbus's shares fell as much as 4.6 percent as investors contrasted its fortunes with those of U.S. arch-rival Boeing, whose stock hit a record high on Wednesday after its quarterly profit and cashflow beat estimates.

Airbus Chief Executive Tom Enders challenged Pratt & Whitney, whose fuel-saving Geared Turbofan (GTF) engine is tied to thousands of orders for small A320neo jetliners, to "work harder" to fix delays and reliability problems.

In an unusual public split with a major supplier, he said the engine maker had failed to meet earlier commitments and took issue with confidence over deliveries voiced by Pratt parent United Technologies.

"You can assume that Airbus is fully in the picture and knows what it is talking about," he told reporters, asked about the difference in tone accompanying their respective forecasts. (end of excerpt)

Click here for the full story, on the Reuters website.


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