Honeywell International Inc. (HON) has won about $6 billion of orders from undisclosed planemakers to supply the same engine that powers the Gulfstream G280 and Challenger 300 business aircraft.
The orders for Honeywell’s HTF7000 engine were announced in a slide presentation posted on the company’s website today. Honeywell declined to provide details of the orders or disclose customers, said Steve Brecken, a Honeywell spokesman. Engine orders are often accompanied by lucrative service contracts that lock in long-term revenue.
The business jet market has slumped as the global economy slows and companies crimp spending. Deliveries of private jets fell to 649 last year from 678 in 2011, according to the presentation. Commercial jet deliveries rose to 1,572 last year from 1,372 in 2011, the Morris Township, New Jersey-based company said.
The HTF7000 engine orders are part of $19 billion of longterm contracts that Honeywell’s business aviation group has garnered over the last three years, according to the presentation. Honeywell’s commercial jet unit has won another $28 billion of work during the period, including controllers for Boeing Co. (BA)’s new narrow-body 737 Max and the C919 single-aisle plane that’s being built by Commercial Aircraft Corp. of China Ltd.
The HTF7000 engine powers Bombardier Inc.’s Challenger 300, which seats up to 10 passengers and has a range of 3,065 nautical miles (5,676 kilometers) and General Dynamics Corp. (GD)’s Gulfstream G280, which began delivery in November and has maximum range of 3,600 nautical miles carrying four passengers.
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