As we forecast earlier this month, the Army has selected GE Aviation over ATEC, a Pratt & Whitney (UTX) and Honeywell (HON) joint venture, for its Improved Turbine Engine Program (ITEP), the program to build its next generation of medium and light helo engines.
GE will now begin Engineering and Manufacturing Development to re-engine the Army's existing 3000+ twin-engine UH-60 and Apache helicopters and to equip the Future Attack Reconnaissance Aircraft (FARA), the first of its Future Vertical Lift capabilities. Production is to begin in 2024.
This is a franchise program whose total value will approach $20B including global and after market sales. The 3,000 HP engine will be 50 percent more powerful, 20 to 25 percent more fuel efficient, and provide a 20 percent longer design life than the 20,000+ 1975-design GE T700 engines now installed around the world. T-700 engines remain in production and currently go for ~$650K. One goal of the ITEP program is to remain below that production cost.
