Transat AT has struck a new support agreement for the Pratt & Whitney geared turbofan (GTF) engines that power its narrowbody Airbus aircraft.
The parent of Canadian leisure carrier Air Transat said on 17 April that the support package will cover direct costs related to grounded A320neo-family jets “and those anticipated to be grounded” this year and in 2026.
Montreal-based Transat says the deal is similar in structure to its previous compensation agreement with P&W covering 2023 and 2024, though it does not specify the new deal’s value.
Last year, Transat disclosed that it had secured C$34 million ($25 million) in compensation from P&W through its previous agreement.
Under the new structure, Transat is receiving credits that can be applied to P&W’s “products and services”, including the purchase of two spare GTF engines. The carrier is exploring opportunities to “monetise” the spare GTFs through sale-leaseback deals “and other financial transactions”.
P&W is amidst a massively disruptive, years-long recall of GTF engines for potential manufacturing defects, which has grounded hundreds of Airbus A320neos, A220s and Embraer E-Jet E2s worldwide…
