ISC - CFHM - IHCC

Thank you very much. I would like to begin by saying on the behalf of MM. David and Krapek how pleased I am to participate in such a prestigious event.

As many of you may already know, Pratt & Whitney is part of United Technologies Corporation (UTC). UTC is comprised of companies that are either number 1 or number 2 in the market segments where they compete. Otis in elevators, Carrier in HVAC systems, Sikorsky in helicopters, Hamilton Standard in propellers and electronic engine controls and UT Automotive in wiring harnesses. In 1994, UTC’s total revenues were slightly above $21 billion (USD) and Pratt contributed $5.8 billion or 27%.

Pratt was founded 70 years ago by Frederick Brant Rentschler who is pictured here standing next to a Boeing F2B-1 which was the first operational aircraft to use Pratt’s venerable WASP engine. The WASP-1340 was in production until 1960 when the 35,000th unit was delivered. It is interesting to note that shipments stabilized at 2900 engines per month during the first World War which equates to one engine very fourteen minutes.

Today, Pratt is comprised of five major business segments with 30,000 people and 16 million square feet under roof. West Palm Beach , Florida is home to our military fighter and transport engine business, Montreal to our Pratt & Whitney Canada small commercial and military engine business, Middletown , Connecticut to our industrial and marine business, Huntsville , Alabama and San Jose , Florida to our liquid and solid propulsion businesses and finally East Hartford , Connecticut to our large commercial engine business. It is the latter for which I will describe our product line.

We have produced over 28,000 large commercial turbojet and turbofan engines. There are still over 12,000 JT8D’s in service today on Boeing 727, 737-100 and 200, Douglas DC-9 and MD80 (arguably the workhorse of the industry). The JT9D, though out of production, powers older A310s, A300s, 747s, 767s, and DC-10s. The PW2000 on the Boeing 757 and PW4000 which is on all widebody aircraft currently in production round out our commercial product offerings.

Pratt & Whitney engines power aircraft at over 460 operators worldwide - 75% of the world’s total operators - generating over 30 million dependable engine flight hours per year.

The PW2000 was certified at 37,000 pounds of thrust in 1983 and 40,000 pounds of thrust in 1987 on the Boeing 757. Since that time 670 engines have been
delivered to operators. Additional applications are the United States Air Force’s C-17 and the llyushin IL-96M shown here.

In February of this year, the PW2000 was certified at 43,000 pounds of thrust in anticipation of a stretch version of the 757 and potentially for future versions of Airbus’ A340. This latest configuration dramatically increases engine durability and lowers maintenance cost by 20% by supercharging the core and through improvements in cooling techniques and materials. Delta Airlines recently took delivery of this configuration.

The key to the increased durability and decreased maintenance cost was additional first blade temperature margin. It went from 40 degrees in 1989 to 300 degrees in this latest version as depicted here.

I would now like to turn to our PW4000 engine family. The PW4000 powers all widebody aircraft in production today, including the large twins - Airbus’ A330 and Boeing’s 777.

The family consists of 3 fan diameters. The 94 fan powers Boeing’s 747 and 767, Airbus’ A300 and A310 and Douglas ’ MD-11 and spans in thrust from 52,000 pounds to 62,000 pounds. The 100 version powers the Airbus A330 and is currently certified at 64,000 to 68,000 pounds of thrust with growth capability to 75,000 pounds when heavier gross weight versions of the A330 demand it. Finally, our 112 version is certified up to 84,000 pounds of thrust to power the Boeing 777 with growth engines of 90,000 pounds and 98,000 pounds of thrust currently under development.

To date, the PW4000 has accumulated over 14 million engine flight hours. For those engines in ETOPS configuration, an in-flight shutdown rate of 0.009 or approximately one per 100,000 hours of operation has been demonstrated - better than twice the certification requirement.

In June of 1993, we certified our Phase III configuration for our 94 engine. This variant yielded a 2% TSFC improvement on Boeing 767 and 747 and 3% improvement on MD-11, A300 and A310. We improved nacelle performance on the Douglas and Airbus platforms to get the additional 1% improvement. We also have redesigned the 5th HPC blade for improved reliability and durability. This configuration has provided surge free operation since its introduction nearly 2 years ago. In fact, this generation of engines has demonstrated a 0.005 IFSD rate for all causes.

In May of 1994, the A330/PW4168 combination was certified. First revenue flight was December 19, 1994 by Thai International from Bangkok to Taipei to Seoul . Today, fifteen aircraft are in-service with Thai, Malaysia and LTU and have accumulated over 20,000 engine flight hours of operation without a single inflight shutdown. We currently are approved for 120 minutes ETOPS operation and expect 180 minute approval this year.

Presently, there are 130 firm and option aircraft on order. We currently enjoy a leading 45% share of customers. The next major A330 engine announcement should be Korean Airlines which we believe will happen shortly.

Over five years ago, we set some very aggressive goals for the PW4084. One was to achieve 180 minute ETOPS prior to entry into service with United Airlines in June 1995, an unprecedented achievement. Three of our engines and one of Boeing’s five Pratt & Whitney powered flight test aircraft was dedicated to achieving this goal. Concurrent with a near flawless engine development program, the airplane successfully completed the key milestone, a 1,000 cycle, high endurance flight test program, on May 22 of this year. On May 30, we realized our goal when, for the very first time, the FAA granted the Pratt & Whitney powered 777 180 minute ETOPS prior to entry into service.

The first flight of the Boeing 777, took place nearly one year ago on June 12, 1994 at Boeing Field. On April 19 of this year, the FAA and JAA certified the 777/PW4084 combination. This was the first time that joint certification occurred on the same day. First flight occurred yesterday, June 7, when United Airlines began 777 revenue service on a flight from London , Heathrow to Dulles.

As of today, 230 firm and option 777 aircraft have been ordered. Our PW4084 has captured a 54% share of these. As with the A330, the next 777 engine selection announcement should come from Korean Airlines shortly.

As we look to the future, heavier gross weight versions of the 777 will require more thrust. Boeing is planning to introduce a 632,500 pound MTOGW version in early 1997 which will require 90,000 pounds of thrust and a 660,000 pound MTOGW which will require up to 98,000 pounds of thrust. We have already commenced the development of both of these engines.

Growth from 84,000 pounds of thrust to 90,000 pounds of thrust is essentially a throttle push. Incorporation of our three dimensional NASTAR high pressure compressor aerodynamics and upgraded high pressure and low pressure turbine materials will allow the throttle push. First engine to test will be in July of this year with an entry into service date of January 1997.

The 98,000 pound thrust version is identically common with the 90,000 pound thrust engine from the high compressor rearward. A high flow fan (in the same 112 diameter) and supercharged low pressure compressor provide the thrust growth. The nacelle is lengthened by approximately seven inches to accommodate these changes, but nacelle nozzle areas are held fixed. We believe the 660,000 pound MTOGW 777 in combination with the 98,000 pound thrust engine will not only be the most capable aircraft/engine combination, but will also be the best selling model as we enter the 21st century.

We have also begun development work on our Mid Thrust Family Engine (MTFE). We believe there is a sizable replacement market for 100 seat class aircraft that will require a simple, low cost solution.

As a result, we have selected a cycle that de-emphasizes fuel burn and emphasizes the use of low cost materials. We believe we have up to a $300,000 advantage in first cost versus our competition as well as a significant maintenance cost advantage. We are currently engaged in discussions with several airframers. Entry into service is expected to be in the 1999-2000 time frame.

Finally, we continue to invest in our Advanced Ducted Propulsor (ADP). Since 1987, we and our partners, MTU and Fiat, have invested over $500 million in this technology. We have successfully demonstrated dramatic TSFC (20% at sea level) and noise (6 dB) benefits. We recently successfully tested a flight weight gear system and have begun to look at translating nozzles as an alternative to variable pitch fan systems. At the end of 1995, we will have demonstrated full technology readiness clearing the way for program launch. I mentioned we were looking at a version of the PW2000 for advanced versions of the A340. Concurrently, we are also assessing ADP concepts in concert with Airbus.

We believe the product portfolio I have just described will strategically position us well in the future and help us to retain our rightful place as the preeminent engine manufacturer in the world.

Thank you again for your attention and the opportunity to address this esteemed gathering.