Aviation

Pratt & Whitney Faces Lawsuit Over Aircraft Engine Allegations

In a significant legal development within the aerospace industry, Pratt & Whitney, a subsidiary of aerospace giant RTX, finds itself embroiled in a formidable $150 million lawsuit. As reported by Reuters.

Filed by Universal Turbine Parts LLC (UTP) in a Philadelphia federal court, the lawsuit accuses Pratt & Whitney Canada, a unit of RTX, of engaging in anti-competitive practices aimed at stifling competition in the market for used engines and parts for regional commercial aircraft, freight operations, and other applications.

UTP, an Alabama-based supplier of aftermarket aircraft engines and engine parts, alleges that Pratt & Whitney Canada has systematically obstructed rivals, including UTP, from accessing its used PT6 and PW100 turboprop engines.

These engines, manufactured by Pratt & Whitney, hold a significant presence in the aviation industry, with Pratt having produced over 64,000 PT6 engines and 8,000 PW100 engines, as stated in the lawsuit.

Central to UTP’s claims is the assertion that Pratt & Whitney has violated U.S. competition law by imposing restrictions that prevent approved “overhaul facilities” from supplying engines and parts to UTP and other second-hand sellers.

Moreover, UTP accuses Pratt of engaging in unfair practices by acquiring used engines and parts at non-economic prices, effectively monopolizing the market and limiting access for competitors.

The lawsuit further alleges that Pratt & Whitney may have obtained sensitive information, leading to its attempts to cut off the supply of engines to UTP and other second-hand sellers. UTP’s legal action seeks $150 million in cash damages, portraying Pratt’s actions as part of a larger “multi-faceted scheme” of antitrust offenses.

Aviation

Aeroflot Buys Used Planes for Spare Parts Amid Sanctions

In the face of ongoing Western sanctions that have severely impacted Russia’s aviation industry, Aeroflot, the country’s largest airline, has devised a strategic plan to bolster its fleet’s spare parts inventory.

The airline is set to acquire five Boeing 737-800BCF freighters from Atran Airlines, a move that will allow it to dismantle the aircraft for critical components. The planes, which will be transferred to Aeroflot’s low-cost subsidiary Pobeda, will not be converted into passenger jets but instead will be stripped for valuable parts to support existing operations.

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Aeroflot’s plan to purchase these Boeing 737-800BCF freighters comes as part of a broader strategy to mitigate the effects of Western sanctions, which have crippled the Russian aviation sector. With the sanctions restricting access to essential aircraft parts and spare components, Aeroflot is exploring alternative ways to maintain and repair its fleet.

Instead of converting the freighters from cargo to passenger planes, a process deemed “unreasonably expensive” under current sanctions, the airline intends to focus on extracting high-value components such as engines, landing gear, avionics, and other essential systems.

The deal will be structured in a way that allows Aeroflot to indirectly purchase the freighters through an insurance settlement with the aircraft’s lessor, AerCap.

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The Russian government’s insurance company will reimburse the aircraft’s value, and the planes will then be leased back to local operators. This method circumvents some of the restrictions imposed by international sanctions while ensuring that the airline gains access to the necessary components to support its fleet.

By dismantling the aircraft for spare parts, Aeroflot aims to secure critical resources for the ongoing maintenance of its existing fleet. Components from the Boeing 737-800BCF freighters, such as engines and avionics, are expected to be reused in other aircraft within Aeroflot’s network, ensuring that the airline can keep its operations running smoothly