Diversified business conglomerate United Technologies Corp. (UTX - Free Report) was recently handpicked by Canada’s low-cost airline services provider Sunwing Airlines to offer services for The Boeing Company’s (BA - Free Report) 737 fleet. UTC Aerospace Systems, an operating unit of United Technologies, is entrusted with the job of maintenance, repair and overhaul services for the inlets, fan cowls and small components of the CFM56-7 engines of 24 Boeing 737-800 aircraft.
The five-year service agreement will be undertaken by the Alabama Service Center of UTC Aerospace Systems located in Foley, Ala. The contract will also facilitate Sunwing Airlines to get an easy access to the nacelle components that are the key elements of an aircraft, thereby ensuring operational reliability.
Over the years, UTC Aerospace Systems has also been manufacturing landing gears for several Boeing aircraft such as the Boeing Next-Generation 737, 747, 767 and the 777. Therefore, the contract is an extension of the long-serving business ties of United Technologies with Boeing.
Based in Hartford, Conn., United Technologies provides high-end technology products and services to the building systems and aerospace industries worldwide. The company is a diversified business conglomerate serving various end markets such as aerospace, defense and commercial construction. The business diversification allows the company to remain profitable amid tough economic times.
The operations of the company are primarily classified into two principal businesses: commercial and aerospace. Under its commercial business, the company has Otis and the UTC Climate, Controls & Security division, which combined the former Carrier and UTC Fire & Security divisions. The aerospace business of the company consists of Sikorsky aircraft and the UTC Propulsion & Aerospace Systems, which includes UTC Aerospace Systems and Pratt & Whitney divisions.
United Technologies presently has a Zacks Rank #3 (Hold). Other notable companies in the industry include ITT Corporation (ITT - Free Report) and Federal Signal Corp. (FSS - Free Report) , both carrying a Zacks Rank #2 (Buy).