P Parameswaran
WASHINGTON: United States aircraft engine manufacturer Pratt and Whitney has staved off a challenge from Europeans to win a $500 million deal to power and service a new fleet of Airbus planes of India's Kingfisher Airlines.
The American feat precedes the largest ever US trade mission to India next week to step up trade and investment ties under a new bilateral strategic partnership centered on a landmark civilian nuclear deal.
Pratt and Whitney signed a deal with Kingfisher in Washington Monday for installing 10 engines -- with one spare -- and an option for an additional 10 engines for the Indian company's A330 aircraft, officials said.
The American firm was also awarded a long-term exclusive fleet management program to overhaul and repair the PW4000-100 engines.
The total transaction is valued at $300 million plus an additional 200 million if all options are exercised, officials said at the agreement signing witnessed by US Commerce Secretary Carlos Gutierrez.
Vijay Mallya, the chairman of Kingfisher, a fast-growing Indian airline, said he had chosen the American company to power the European aircraft despite intense lobbying by European firms.
"I bought the Airbus aircraft but as a result of the Pratt and Whitney engine, the European aircraft is now more than 50 percent American," he said amid applause by US government officials and executives of the two signatories at the ceremony.
Mallya, speaking before inking the pact with Todd Kallman, president of Pratt and Whitney Commercial Engines, did not name the European firms that pursued the deal.
"The Europeans tried very hard for the engine order but despite their persuasive powers, our analysis showed that the Pratt and Whitney's engine, its performance and the commitment of Pratt and Whitney behind their product -- as I said the dependable engine -- is what finally showed us the right path," Mallya said.
In addition, he said, the commercial terms and service agreements for the deal were competitive.
Kallman said the agreement "was a great source of pride for Pratt and Whitney."
Gutierrez said the deal would boost bilateral relations and trade, coming ahead of a business development mission to India next week comprising 200 executive representing 185 US companies.
