$US28m air deal signed and sealed

Friday 18th May 2001

By Graeme Kennedy

The Air New Zealand-Ansett Australia Group will get $US28 million in a joint-venture deal to be signed with US engine manufacturer Pratt & Whitney in Christchurch today.

The two companies will develop an international engine repair and maintenance centre based on Ansett Australia and Air NZ Engineering Services (ANNZES) facility at Christchurch Airport.

Air NZ chief executive Gary Toomey said Pratt & Whitney would bring new technology as well as capital to the venture, which had the potential to achieve revenues of up to $US170 million a year over five years.

Air NZ, he said, would make an $18 million profit from the engine-maker's $US28 million share in the project.

About 300 Christchurch engineering employees will transfer from Air NZ to the new company, to be known as the Christchurch Engine Centre.

ANNZES senior vice-president Bill Jacobson said the Christchurch facility had been performing third-party work for the past 10 years and would expand with the joint venture.

The engine shop overhauls more than 50 Rolls-Royce Dart turboprops and 100 Pratt & Whitney JT8D jets a year and the numbers would grow to more than 300 with the introduction of V2500 engines which power many Airbus A320 aircraft around the world.

The V2500 would replace work lost as the Darts and JT8Ds went out of service, Mr Jacobson said.

A new board for the joint venture includes ANNZES finance head Trevor Hughes, recently retired Air NZ group general manager operations Ian Diamond, Pratt & Whitney president for commercial engines Jim Robinson and Pratt & Whitney vice-president for commercial overhaul Gerald Kent.

Comments from our readers

No comments yet