Rolls-Royce and Pratt & Whitney have signed an agreement to develop next generation engines to power future mid-size aircraft in the 120–230 seat range, putting Rolls-Royce back into the picture for narrowbody engines. Rolls is an important partner in International Aero Engines (IAE), the four member venture which produces the V2500 engine for the A320, but it has not developed a new engine for the next generation of regional jets and narrowbodies, which are due to come into service over the next six years.

The aim of the joint venture (JV) is to develop new engines for the next generation of aircraft that will replace the existing ‘mid-size’ fleet. The 20-year forecast for this segment is a worldwide demand of around 20,000 new aircraft, with a requirement for nearly 45,000 engines.