More V-22 Engines Ordered from Rolls-Royce

by: Matthew Potter
December 29, 2010

Category: Bell, Boeing, Business Line, Companies, Contract Additions, Contract Awards, Department of Defense, development program, Events, logistics, Military Aviation, production program, Rolls-Royce, Services, U.S. Air Force, U.S. Marine Corps, U.S. Navy | RSS 2.0

The controversial tilt rotor V-22 aircraft has now been in service with the U.S. Marine Corps and Air Force for a few years now. Their production is at a pretty steady state and they have carried out successful deployments to Iraq and Afghanistan. While the aircraft is produced by Bell and Boeing (BA) the two engines for each aircraft are manufactured by Rolls-Royce’s (RR:LSE) American operations.

As the V-22 builds up service time and continues production there will be a need for more engines. Not only to support the deliveries of new aircraft but to replace those in service or act as spares. Rolls-Royce has received two contracts in the last week for engines to support the V-22 program.

First the Navy executed a contract worth over $120 million to support their MV-22. Then the Air Force purchased 24 engines for the CV-22 at a cost of almost $50 million.

In November another contract to provide maintenance for in-service V-22 aircraft was also won. This will support all services operating the aircraft.

As a program goes through its life cycle the Original Equipment Manufacturers (OEM) are able to make significant revenue from providing this kind of support. The Department of Defense does have the right to order parts, equipment and support from other then the OEM and even if they purchased the data rights to have another company manufacture the engine.

Photo from Beige Alert’s flickr photostream.

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