UTC Aerospace Systems, a unit of diversified conglomerate United Technologies Corp. (UTX), won a contract extension from The Boeing Company (BA) to design and manufacture nacelle systems for the 787 Dreamliner commercial jets.
UTC Aerospace also signed a Comprehensive Accessory Repair and Exchange (C.A.R.E.) program agreement for the Dreamliner fleet of Scoot Pte. Ltd., a Singapore-based low-cost long-haul airline.
Boeing’s Dreamliner Contract
Per the contract, UTC Aerospace’s Aerostructures unit will build the aerodynamic framework that will surround the jet engine for 787-10, the next variant in the Dreamliner series. Nacelle systems will be built for both the GE Aviation GEnx and Rolls-Royce Trent 1000 engine variants.
Additionally, UTC Aerospace will provide aftermarket support for the 787-10 nacelle systems through its worldwide network of MRO (maintenance, repair and overhaul) facilities and spares. The financial details of the transaction, however, were not disclosed.
The contract was an extension of a 2004 agreement wherein the Aerostructures business had supplied nacelle systems for 787-8 and 787-9 Dreamliners and for engines by General Electric Co. (GE) and Rolls Royce.
The 787-10 is the largest jet in Boeing’s Dreamliner series, with a range of up to 7,000 nautical miles. The Dreamliners stand apart for their distinctive scalloped nacelles (external engine housings), which facilitate engine noise reduction. Apart from the nacelle systems, UTC Aerospace also supplies over 20 proprietary components and systems for the 787 Dreamliner commercial jets.
Scoot Agreement
Scoot selected UTC Aerospace to provide MRO services and inventory support for its Boeing 787 aircraft through a C.A.R.E. program agreement. UTC Aerospace has been serving Singapore Airlines under the C.A.R.E. programs since 2008, supporting the airline's Boeing 777 and Airbus A380 fleet.
Separately, Scoot signed a long-term comprehensive APS5000 Auxiliary Power Unit maintenance support agreement with Pratt & Whitney, a segment of United Technologies. Per the support agreement, Pratt & Whitney AeroPower will provide repair services and spares asset management for Scoot’s new fleet of 20 Boeing 787 series aircraft.
United Technologies presently holds a Zacks Rank #3 (Hold). A better-ranked stock in the diversified operations industry is Macquarie Infrastructure Company LLC (MIC), carrying a Zacks Rank #1 (Strong Buy).
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