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TAT Technologies announcing that its fully owned subsidiary Piedmont Aviation (“TAT-Piedmont”) and Honeywell International Inc., had entered into a 10-year agreement for exclusive worldwide Auxiliary Power Unit (APU) rental services for OEM-authorized GTCP331-500 engines.
Under this contract, TAT-Piedmont acquired Honeywell’s GTCP331-500 APU’s rental bank and will offer rental services to airlines who are operating Boeing’s 777 aircraft and will serve on behalf of Honeywell for any rental of Honeywell GTCP331-500 APUs to Honeywell customers on an exclusive basis.
In addition, TAT-Piedmont and Honeywell entered into a binding MOA to authorize TAT-Piedmont to provide licensed MRO services on GTCP331-500 APUs, and provide relevant knowhow and parts, making TAT-Piedmont an authorized global MRO services provider for this engine.
The 10-year agreement, major growth opportunity for TAT, according to CEO
Mr. Igal Zamir, CEO of TAT Technologies, stated that, “this agreement is a significant step in the development of TAT-Piedmont as a major global player in the APU MRO services business, and will improve support and options for Honeywell APU customers.” He also added that, “The GTCP331-500 APU engine, which is installed in all Boeing 777 aircraft around the world, is expected to be in operation for the next few decades, generating meaningful MRO business opportunities. The rental services agreement and the anticipated authorization to provide licensed MRO services, are major growth opportunities for TAT.”
According to Mr Zamir, “this agreement, together with the recent MRO license agreement for the GTCP331-200/250 engine , will strengthen the strategic relationships between TAT and Honeywell and prove the strong positioning of TAT-Piedmont as a global quality MRO services provider for a variety of APU engines to airlines, aviation players and military organizations.”
TAT-Piedmont, having been a Honeywell channel partner for over 14 years, is engaged in the APU MRO services including for the APU GTCP331-200/250 which is mainly installed in the Boeing 767 and Boeing C-17 platforms. TAT Piedmont recently signed a 10-year exclusive MRO license agreement with Honeywell for the GTCP331-200/250 APUs.
Mr. Zamir also noted: “The introduction of the GTCP331-500 APU to our offering will more than triple the potential market size available for TAT-Piedmont. This new agreement is expected to add revenues and generate profits for TAT in the near future. A recovery of the airline and aviation industries in the mid-term will meaningfully enhance business volumes related to this agreement.”
The new Honeywell International agreement with TAT Piedmont opens the doors for the two companies to a fruitful and long-lasting partnership. As stated by Mr. Zamir above, the collaboration makes TAT Piedmont a strategic global partner to leading players in the world of aerospace.