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Blog Exposure - Pratt & Whitney Identifies Problem with PW1100G-JM Engines Delivered for Airbus A320neo Aircrafts

Stock Monitor: CAE Inc. Post Earnings Reporting

LONDON, UK / ACCESSWIRE / February 13, 2018 / Active-Investors.com has just released a free research report on United Technologies Corp. (NYSE: UTX). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=UTX as the Company's latest news hit the wire. On February 09, 2018, Pratt & Whitney a United Technologies Corporation (UTX) company, along with Airbus SE issued a joint statement with regards to the engine issues faced by Pratt & Whitney's PW1100G-JM Engines used in Airbus's A320neo jets. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for CAE Inc. (NYSE: CAE), which also belongs to the Industrial Goods sector as the Company United Technologies. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, United Technologies most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Communication from Pratt & Whitney

Pratt & Whitney disclosed that they have investigated the problem and found that the issue is with the knife edge seal in the High-Pressure Compressor (HPC) aft hub on the PW1100G-JM engine. This issue is limited to a small portion of the engines. The Company further stated that they have managed to identify the potentially affected engines and have reached out to the customers and explained the issue to them. The Company has assured that the engines which have been identified with the said problem will be dealt with as per operational instructions issued by Airbus. The Company and Airbus are in constant communication with customers to ensure minimal disruption and are coordinating their efforts to handle the situation.

Action taken by Airbus

Airbus faced higher than normal number of inflight shutdowns and aborted take-offs in aircrafts using the latest engines supplied by Pratt & Whitney. Once the issue was noticed, Airbus along with Pratt & Whitney immediately started investigating the root cause of the engine problems. As an immediate step Airbus has stopped delivering A320neo jets powered by Pratt & Whitney and has briefed airlines and leasing companies about the problem. Airbus has issued detailed safety recommendations to airlines using the aircrafts with affected engines till the issue can be fixed or engines are replaced by Pratt & Whitney. Airbus brought the issue to the notice of the European Aviation Safety Agency. The aircraft Company has not been able to give a time frame within which the problem could be resolved. This glitch is going to affect the delivery schedules of Airbus.

Impact of the Engine Snag

The European Aviation Safety Agency immediately ordered flight restrictions on the use of Airbus A320neo and A321neo jets with affected engines. The European Agency's directives have restricted the operation of the airplanes with two affected engines to three more cycles before one of the engines is replaced with a substitute engine that does not have the HPC aft hub issue. While the aircrafts having one of the affected engines were restricted from certain extended-range flights.

So far 113 aircrafts manufactured by Airbus have been identified using Pratt & Whitney's affected engines and are being used by over 18 airlines. Most of the airlines using Airbus' aircrafts with affected engines are in India and Europe. So far, the issue has forced Indian airline IndiGo to ground three of its A320 aircrafts after the safety directive issued by the European Agency. Airbus has acknowledged that it has traced 17 of the affected engines to Indian airline operators and has updated them of the problems. IndiGo had placed one of the largest order of 250 A320neos with Airbus in August 2015. These 250 aircrafts were to be powered with Pratt & Whitney's GTF engines.

The A320neo is one of the most fuel-efficient and best-selling model of Airbus. However, this is not the first time that Airbus is facing a problem with Pratt & Whitney's GTF engines. In July 2017, technical issues with Pratt & Whitney engines forced Airbus to delay the delivery of its A320neo aircrafts to its customers. The technical issues also forced Airbus customers to ground or cancel certain flights. Airbus had reported a dip in its H1 2017 profits due to these delays and technical issues with the Pratt & Whitney's engines.

Continued problems with Pratt & Whitney engines raise the question on their reliability and give a major blow to the Company's efforts to rebuild customer confidence which was affected by the earlier engine issues. However, the only consolation is that the problem is restricted to a small number of aircrafts using affected engines.

About Pratt & Whitney

Hartford, Connecticut-based Pratt & Whitney was founded by Frederick Rentschler in 1925. Pratt & Whitney is a United Technologies Corp. Company. The Company' is a world leader and its business units manufacture and service commercial and military aircraft engines and auxiliary power units. Farmington, Connecticut-based United Technologies provides high-tech systems and services to the building and aerospace industries.

About Airbus SE

Toulouse, France-based Airbus is the largest aeronautics and space Company in Europe and a worldwide leader. The Company designs, manufactures, and delivers aerospace products, services, and solutions. Its products include commercial aircrafts, Space and Defence crafts, and Helicopters. The Company has a global presence across 180 locations and has over 12,000 direct suppliers globally. The Company has aircraft and helicopter final assembly lines across Asia, Europe, and the Americas.

Stock Performance Snapshot

February 12, 2018 - At Monday's closing bell, United Technologies' stock rose 1.88%, ending the trading session at $127.38.

Volume traded for the day: 9.53 million shares, which was above the 3-month average volume of 3.94 million shares.

Stock performance in the last three-month – up 7.61%; previous six-month period – up 8.97%; and past twelve-month period – up 14.71%

After yesterday's close, United Technologies' market cap was at $103.72 billion.

Price to Earnings (P/E) ratio was at 22.36.

The stock has a dividend yield of 2.20%.

The stock is part of the Industrial Goods sector, categorized under the Aerospace/Defense Products & Services industry. This sector was up 1.4% at the end of the session.

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