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The engine manufacturing industry, dominated by three major players, is currently witnessing a shift in dynamics due to challenges faced by Pratt & Whitney. GE Aerospace holds a significant 55% market share through its joint venture, CFM International. Rolls-Royce Holdings, once more prominent, now controls 18% of the market.
Pratt & Whitney's ambitious PW1000G engine program has encountered setbacks since its launch in 2007. The geared turbofan design aimed to enhance fuel efficiency but faced development challenges. Recent issues with contaminated powdered metal have led to recalls and financial strain for the company. Airlines like Spirit Airlines and Wizz Air have been affected, with Spirit receiving a settlement of $150-$200 million.
The situation raises questions about the impact on the industry and whether competitors can capitalize on Pratt & Whitney's struggles. General Electric and Rolls-Royce are positioned differently in this scenario. CFM International's LEAP engine emerges as a key competitor with its reputation for reliability.
