Asian Aerospace 2000 -- Pratt & Whitney has established a new Small Military Engines (SME) business unit to provide turboshaft, turboprop and turbofan engines and technology to the US military. SME will operate alongside the company's Military Engines unit, but will draw technology from Pratt & Whitney Canada.

The company's primary goal is to win research and development funding from the U.S. government, in competition with its U.S. rivals -- Honeywell and GE -- and Rolls-Royce. The Pentagon still has a substantial small-engine technology program, but Canada's Technology Partnership Canada program has been stalled by international disputes over technological and other subsidies to the aerospace industry.