Cut price bid wins aero engine order

A European aerospace consortium which includes Rolls Royce slashed its bid to supply engines for a new Airbus military transport after being undercut by a Canadian manufacturer, it was reported today.

The Toronto Globe and Mail said Pratt & Whitney Canada lost the contract, worth more than £2bn (€2.8bn), after European governments and business leaders successfully engaged in a last-minute lobbying campaign to keep the business.

Airbus announces yesterday that the contract for engines will go to EuroProp International (EPI), a consortium of French, German, British and Spanish aerospace firms.

As recently as last week, Airbus executives had described the Pratt & Whitney bid as “much more economic” than the rival bid, because its offer was about 20% cheaper that the EPI plans, the newspaper said.

The French newspaper Le Monde said EPI had submitted a revised bid, reducing its price by 20% and effectively closing the gap with Pratt & Whitney.

The engines will power the new A-400M military transport plane that is being built for several European countries.