Pratt & Whitney executives said Friday the company is prepared to be a standalone supplier for a new generation of aircraft engines being offered to Boeing Co. (BA), Airbus and other plane makers.

The company sees its new geared turbofan engines as key to closing the gap with General Electric Co. (GE) and Rolls-Royce Group PLC (RR.LN, RYCEY), the two largest aircraft engine makers.

Pratt, a unit of United Technologies Corp. (UTX), has said it would prefer to offer the new engines within its existing International Aero Engines partnership with Rolls-Royce, Japanese Aero Engine Corporation and MTU Aero Engines.

However, the quartet have yet to agree on how they might structure a deal to supply Airbus and Boeing with new-generation engines.

The two airframe manufacturers are looking at new engines to improve performance after delaying plans to develop all-new aircraft to replace their respective A320 and 737 lines. Airbus has said it will announce its plans this summer, with Boeing following by year-end.

Pratt & Whitney is already offering its advanced engines to business-jet makers and new commercial aircraft being developed by Bombardier Inc. (BBD.BE-TSE).

David Haas, President of Pratt & Whitney, told analysts that the new engine, to be used on Bombardier's new CSeries commercial aircraft, has garnered wide interest with its ability to reduce operating costs by 15% to 16%, while reducing noise and cutting maintenance costs.

While Pratt & Whitney remains interested in pursuing that partnership, Haas said it is prepared to stand alone in producing and marketing the geared turbofan without partners.

Louis Chenevert, United Tech's chief executive, said it was unlikely that Pratt could forge a new partnership with the engine unit of General Electric Co. (GE).

Along with other United Tech units, Pratt & Whitney's global business are recovering from last year's downturn. Haas said the global business jet market is expected to hit bottom this year, and that the growing Chinese market will lead a recovery there.

China will also be a key player in the market for larger commercial aircraft, preparing for the first time to make its own planes. Haas said Pratt & Whitney is pursuing opportunities there for its engine business.

Overall, the company continues to see a recovery in the commercial market in the second half of this year, led by an increase in aftermarket sales as airlines complete maintenance they had deferred.

On the defense side, it's too soon to assess how a restructuring of the budget-busting F-35 Joint Strike Fighter program would affect margins. That should become clear in the next couple of months, Haas said.

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