Honeywell Signs $16 Billion Systems Contract With Airbus on A350 Extra Wide-Body Plane

PHOENIX, Sept. 19 /PRNewswire-FirstCall/ -- Honeywell (NYSE:HON) announced today that it has been selected to provide the major mechanical systems for Airbus's new long-range, wide-body A350 aircraft.

The contract is expected to generate more than $16 billion (including aftermarket) in revenue for Honeywell over the projected 20- to 25-year life of the program. It is the largest systems and equipment package Airbus has awarded to date on this program.

"We revitalized our customer focus in early 2005, and those efforts, coupled with Honeywell's unparalleled technologies and experience with integrated aerospace systems, uniquely positioned us to meet Airbus's demanding requirements for this next-generation aircraft," said Robert Gillette, President and Chief Executive Officer, Honeywell Aerospace. "Honeywell's advanced Air Management Systems and auxiliary power unit technologies will deliver the system performance and dependability Airbus and its operators expect in today's global market."

As part of the agreement, Honeywell will design and build an auxiliary power unit (APU) and provide the APU Installation Kit and APU Starter- Generator. These integrated systems supply pneumatic and electric power for the aircraft while on the ground or in flight. The HGT1700 APU will incorporate proven technologies from Honeywell's fleet of Airbus APUs, optimized with industry-leading technological advancements to reduce weight, maximize performance and reduce direct maintenance to provide safe, efficient, low-cost operations.

The company will also provide integrated systems to manage all of the air used on the aircraft for environmental control, including cabin heating and cooling, and cabin pressurization for increased passenger comfort and safety. The Air Management System, specifically designed for Airbus A350, builds on Honeywell's more than 50 years of providing integrated aircraft systems. Honeywell is the leading supplier of environmental and cabin pressure control systems -- proven in millions of flight hours of commercial service.

"This first contract signed with a major equipment supplier for the A350 is the first concrete example of our new way of working with our suppliers who are now becoming real partners," said Airbus Executive Vice President Programmes and Procurement, Tom Williams.

"With the A350 we are initiating a different type of relationship with this community. We attribute larger, complete work packages to a smaller number of major suppliers who are now becoming real systems integrators, which should allow them to define a globally much more efficient system," Williams continued. "They are fully responsible for the total process from the initial research and development up to manufacturing/production and integration of the complete element, which they deliver, once fully checked and tested to maturity, to the Airbus production line. We are convinced that, by starting the process very early and fully involving these suppliers as partners in the process, we shall be in a much better position to achieve an even higher maturity at entry into service."

The A350XWB (Xtra Wide-Body) Family is Airbus' response to widespread market demand for a series of highly efficient medium-capacity long-range wide-body aircraft. With a range of up to 8,300 nm / 15,400 km, it is available in three basic passenger versions: the A350-800 accommodating 270 passengers, the A350-900 seating 314, and the A350-1000 for 350 passengers. The twin engined A350XWB is powered by new generation Rolls Royce Trent engines delivering up to 95,000 lbs of thrust. The A350 has the widest fuselage in its category, offering improved levels of comfort and lower operating costs for aircraft in this market segment. Each version of the A350XWB Family is designed to confront the challenges of high fuel prices, rising passenger expectations, and environmental concerns. Total firm orders and commitments for the A350XWB stand at 254 aircraft (154 firm orders and 100 commitments). For information about the A350, visit www.airbus.com.

The company will host a media call at 9 a.m. EDT today with Aerospace President and Chief Executive Officer Rob Gillette. Please dial (800) 230-1092 in the U.S., or (612) 234-9960 internationally to listen to the call. A replay of the call will be available beginning at 11 a.m. EDT at (800) 475-6701 in the U.S., (320) 365-3844 internationally, access code 887726.

Honeywell International is a $34 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor's 500 Index. For additional information, please visit www.honeywell.com.

Based in Phoenix, Honeywell's aerospace business is a leading global provider of integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space and airport operations.

This release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Forward-looking statements are based on management's assumptions and assessments in light of past experience and trends, current conditions, expected future developments and other relevant factors. They are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by our forward-looking statements. Our forward-looking statements are also subject to risks and uncertainties, which can affect our performance in both the near- and long-term. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.

    Media Contact:
    Karen Crabtree                          Bill Reavis
    (602) 365-5255                          (602) 365-2055
    karen.crabtree@honeywell.com            bill.reavis@honeywell.com

Source: Honeywell

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