MTU Aero Engines intends to increase its share in International Aero Engines (IAE)

MTU Aero Engines intends to increase its share in the International Aero Engines (IAE) consortium. This move is expected to follow an agreement between Pratt & Whitney and Rolls-Royce on the restructuring of the IAE consortium, which markets the highly successful V2500 engines for Airbus A320 family aircraft. Rolls-Royce will sell its stake in IAE to Pratt & Whitney, which in turn will pass on parts of this share to MTU Aero Engines.

As a result, MTU's share in the V2500 program - currently MTU's most important commercial engine program - will be raised above the 11 percent held today. MTU's revenue contribution from this program will increase substantially. The deal will lead to a positive earnings contribution for MTU. The acquisition by MTU is subject to supervisory board approval and its final terms and conditions still have to be determined.

MTU Aero Engines is Germany's leading engine manufacturer and the country's only independent engine builder. The established player in the industry is a technology leader and excels in low-pressure turbines, high-pressure compressors, manufacturing and repair techniques. It has a workforce of more than 8,000 employees worldwide and, in fiscal 2010, posted consolidated sales of some 2.7 billion euros. MTU Maintenance is the world's largest independent provider of engine maintenance, repair and overhaul (MRO) services. In the military arena, MTU is Germany's industrial lead company for practically all engines flown by the country's armed forces.