SOURCE: IAE International Aero Engines AG

IAE International Aero Engines AG

September 21, 2011 08:00 ET

People's Republic of China Flying IAE's V2500

BEIJING--(Marketwire - Sep 21, 2011) - Air Transport activity is in great demand in the People's Republic of China (PRC). It has grown exponentially over the past decade and China continues to lead the aviation industry with its rapid expansion. International Aero Engines has been a key enabler, as the V2500 engine now powers more than half of the A320 aircraft in the PRC.

In fact, about 40 percent of the engines produced by IAE in 2010 were delivered to China, reflecting that the country's domestic traffic has tripled, while international traffic has grown four-fold over the past decade.

IAE provides V2500 engines to a large number of airlines in this nation -- some 17 operators call China their home, and over the last three years more than 30 percent of V2500 production capacity has been delivered to China. The V2500s power A320 series aircraft that operate domestically, regionally and globally. This results in more than 340 aircraft in service, with another 100 in backlog.

"China has an air transportation market that continues to grow very quickly," explains Bob Zimmerman, a regional vice president for IAE. "Over the years, we've effectively built solid relationships through customer focus and the attributes of the V2500."

China Southern is the largest V2500 operator here, with a total of 177 aircraft -- more than 350 engines in service or on firm backlog. It is also IAE's largest V2500 customer, gaining that recognition with an order of 65 SelectOne engines announced at the Paris Air Show in June. The second largest V2500 user in China is Sichuan Airlines, with 75 aircraft on order or firm backlog.

"Many airlines and operators have made the V2500 their engine of choice in China," said IAE President and Chief Executive Officer Ian Aitken. "Our customers like the continuous upgrading of the capabilities, reliability, maintainability and efficiencies that our engines offer."

With hubs in Guangzhou and Beijing, China Southern is the world's third largest global airline, operating in nearly 900 cities within 169 countries. By fleet size, it is the largest airline in China and sixth largest in the world.

IAE is a multinational aero engine consortium whose shareholders comprise of Pratt & Whitney (NYSE: UTX), Rolls-Royce (LSE: RR), Japanese Aero Engines Corporation and MTU Aero Engines. There are more than 5,500 V2500s in service or on firm order with nearly 200 customers around the world.