Rolls-Royce endangered by new V-22 program cuts


As the U.S. military explores ways to cut costs of its V-22 Osprey aircraft, Rolls-Royce (OTC:RRCEF) may lose its place as the program's sole engine provider.

"The V-22 Program is continually investigating ways to reduce the life cycle costs of the aircraft," announced the U.S. Navy by email. "Knowing that more than 90% of the operational use of the V-22 is in the future, coupled with budget pressures, it is prudent to investigate alternatives to existing systems and the engine is no exception."

Each V-22 is currently powered by two Rolls-Royce AE1107C engines.

The U.S. Marine Corp is in the process of acquiring 360 MV-22s, while the Pentagon this fiscal year is acquiring the last CV-22s for the Air Force. The aircraft are also attracting several overseas buyers.

Comments (2)
  • marcyank
    , contributor
    Comments (3) | Send Message
     
    Is this the same government who went sole engine provider on the JSF with Pratt's F-135? Think the Pentagon should look in the mirror when they talk about becoming more efficient.
    1 Sep 2014, 11:42 AM Reply Like
  • karchlg
    , contributor
    Comments (233) | Send Message
     
    Alternate engines don't come free. In the case of the JSF the GE alternate engine would require a few $B investment right NOW. Which is fine IF you have the few $B in your hip pocket.
    1 Sep 2014, 10:09 PM Reply Like
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