US aircraft engine manufacturer Pratt & Whitney is talking to Air New Zealand about investing in part of the airline's Christchurch engineering workshop.
Talks are centred on one of the workshop's four engine lines, the JT8 engine repair business, which employs 200 staff to service Pratt & Whitney enginesbelonging to Air New Zealand and other airlines.
The Christchurch workshop is run as part of Ansett Australia and Air New Zealand Engineering Services (ANNZES) - now wholly owned by Air NZ - which also includes engineering bases in Auckland and Melbourne.
An industry source said Pratt & Whitney was keen to take a 51 per cent stake in the joint venture, but Air NZ spokesman Alastair Carthew said the ownership structure of the proposed joint venture had yet to be determined.
He said the JT8 engine line would remain a fundamental part of the ANNZES business.
John Bainbridge, national secretary of the Marine, Aviation and Power Engineers union, said the JT8 line serviced engines used on Boeing 737-200s, an aircraft that is being phased out of service worldwide.
While Pratt & Whitney's future intentions were unclear, the hope was the engine maker might later consider installing a new line to service other engines if it was happy with the work on the JT8 line.
Pratt & Whitney officials in Australia, Singapore and the United States had no comment yesterday.
Pratt & Whitney engines power more than half the world's commercial fleet.
