Rolls-Royce, announced today it has completed the restructuring of its participation in International Aero Engines (IAE) Collaboration, which produces the V2500 engine for the Airbus A320 family of aircraft. 

Rolls-Royce has sold its equity and program shares in the IAE Collaboration to Pratt & Whitney, a United Technologies Corp. company, for a consideration of US $1.5 billion.

In addition to the consideration, which will be subject to working capital adjustments, Rolls-Royce will also receive an agreed payment for each hour flown by the current installed fleet of V2500-powered aircraft for the next fifteen years.

In a press statement Rolls-Royce "remains committed to IAE and its customers and continues to be an essential supplier, retaining responsibility for the manufacture of high-pressure compressors, fan blades and discs as well as the provision of engineering support and final assembly of 50 per cent of V2500 engines."

In addition to the restructuring of their participation in IAE, on 12 October 2011, Rolls-Royce and Pratt & Whitney also announced the formation of a new engine collaboration to power future mid-size aircraft, which is subject to separate regulatory approvals.IAE partners, Japanese Aero Engines Corporation (JAEC) and MTU Aero Engines GmbH (MTU), have also agreed to join this new venture.