RTX Corp(NYSE:RTX) is making an unusual tradeoff: instead of directing every available engine component toward new aircraft deliveries, it’s prioritizing repairs for grounded jets.
During the second-quarter earnings call, CEO Christopher Calio said Pratt & Whitney’s commercial OEM sales fell because the company is ensuring it has “strong material flow into our MRO shops,” allowing repair facilities to process more engines and reduce turnaround times.
CFO Neil Mitchill later reinforced that the shift is “really about the material allocation” between new engine deliveries and aftermarket repairs.
The strategy appears to be working.
RTX said grounded PW1100-powered aircraft are down 25% year to date, maintenance output has increased 43%, and turnaround times have improved 23% despite heavier repair workloads.
At the same time, Pratt & Whitney still expects to deliver a record number of GTF engines this year, suggesting the company is balancing new production with a greater emphasis on restoring aircraft already in service.
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