United Technologies Corporation is known as the pioneer in the capital goods industry. The company is known as the industrial conglomerate that is engaged in manufacturing high technology devices as well as provides services. The company is also known for providing armed forces with missile systems and military helicopters. It is the best out there in the aircraft engine market.
Hence it has joined hands with Rolls Royce which would see the car manufacturing company taking a narrow share of the body aircraft engine market. Rolls Royce is anticipating on working together with United Technologies.
Rolls Royce recently expressed the intentions to be partners with United Technologies that will allow the car manufacturer to re enter the aircraft engine manufacturing market. So far, there has not been any final decision or official word came out but it will happen most likely. The car manufacturing giant seeks to take a narrow market share through this deal.
The CEO of Rolls Royce, John Rishton stated that its comeback in the aircraft industry was planned however it needed a perfect partner to do so. The company realized that UTX will be the perfect matchmaker for this to happen. Furthermore, this partnership is currently aiming to break the consistency of General Electric Company in the market that holds a 75 percent market share.
Rolls Royce currently hold a 50 percent market share of the ‘wide’ body aircraft engine market but it wishes to make an impact in the narrow engine market as well. The only justifiable reason of the company to enter narrow body aircraft engine market in commercial jets is the massive decline in wide body aircraft engine market in commercial jets recently. BidnessETC reports “With most airlines moving away from jumbo jets and chopping and changing their orders to smaller aircraft, demand for wide body aircraft engines is bound to be affected, with negative consequences for Rolls Royce aviation revenues.”
Furthermore, professional who are involved in this industry suggest that Rolls Royce, to supply engines, might need a complete new aircraft. These new aircrafts will be similar to that of Airbus A330 and Boeing 737 which are more like ‘single aisle aircraft’. The company will have to do it in order to make an impact in the industry as well as remain competitive in the market for a longer period of time. It is believe that the future lies in airlines operating smaller single aisle jets in the coming times.
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