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Pratt & Whitney Hikes GTF List PricesPratt & Whitney will increase the list prices of its PW1000G geared-turbofan family later this year to reflect what it believes will be increased value from better-than-anticipated performance. (aviationweek.com) More...
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"We will be increasing pricing due to the fact we think we can get away with it"
Good point. Maybe they can get away with it. That's what business is all about. If this decision is a mistake, it shouldn't take long to get the answer. And some senior executive may be job hunting soon.
As always, the market will decide if this is a good decision or not. I'm not impressed with the explanation.
P&W makes efficiency improvements in their engines to help the airlines make more money, OK? Now, they want the savings returned to them. Yes, maybe they can get away with it. When a company has a monopoly on efficient engines, they can charge whatever they want to. This will encourage Rolls-Royce and GE to come up with more efficient engines. Then charge for them whatever the traffic will bear. Like Ed said, some bosses may be pounding the pavement looking for a job.
Will have to see what happens... I know that they have had some problems with this engine.... I think this is the engine that both Bombardier C-Series and the MRJ will be using... Will see how it goes.