Pratt & Whitney, a subsidiary of Raytheon Technologies Corp., announced on Wednesday that it has entered into a $5.5 billion modification agreement with the United States Air Force. This contract is an extension of the previously awarded F117 Engine Sustainment Support contract.
Engine Performance Improvement Package
One of the major highlights of this modification is the inclusion of an engine performance improvement package. This package aims to significantly reduce the number of shop visits required each year due to extended time on wing. As a result, the customer is expected to save approximately $29 million annually in fuel costs.
Fuel Efficiency and Environmental Impact
In addition to cost savings, Pratt & Whitney’s engine performance improvement package will enhance the F117 engine’s fuel efficiency. It is estimated that this improvement will save up to 6.5 million gallons of fuel per year and reduce carbon dioxide (CO2) emissions by up to 140 million pounds annually.
Engine Services for C-17s
Under this contract modification, Pratt & Whitney will provide engine services specifically for C-17 aircraft operated by the United States Air Force and eight international partners. The duration of this work is scheduled between now and the second half of 2028.
Locations of Operation
The engine services will be carried out at Tinker Air Force Base in Oklahoma, as well as facilities in San Francisco and Columbus, Ohio.
Current Stock Performance
As of now, Raytheon’s stock has experienced a 2.9% decrease since the beginning of this year. In comparison, the S&P 500 has observed a 16% increase during the same period.