Aerospace outlook seen bright through 2010

WASHINGTON (Reuters) - The aerospace industry is enjoying brisk military and commercial demand that is likely to extend through 2010, a top executive of engine-maker United Technologies Corp (UTX.N: Quote, Profile, Research, Stock Buzz) said on Wednesday.

"I see strong momentum for aerospace continuing through 2010 at this point in time. I see no reason for this industry to see a decline between now and 2010," Louis Chenevert, president and chief operating officer of United Technologies, told the Reuters Aerospace and Defense Summit.

"All of the segments have so much pent-up demand," he added.

United Technologies' Pratt & Whitney unit manufactures jet engines, its Sikorsky business makes helicopters, and its Hamilton Sundstrand operation supplies airplane electronics. The company also makes Otis elevators and other industrial goods.

Pratt & Whitney has outpaced other jet engine makers over the past three years, Chenevert said. Its new geared turbofan with sophisticated noise reduction technology is being ground tested now and will be tested in the air in the second quarter of 2008, he said.

Sikorsky, meanwhile, is a "transformed company" and has about $5 billion in revenue this year along with an order backlog of about $9 billion, Chenevert said.

Sikorsky is benefiting from booming demand for helicopters and has developed an X2 prototype helicopter that will be ready to fly in the first quarter of next year, he said.

The X2 can fly at 250 knots and has low noise and low vibration features. He said the helicopter would be suitable for commercial or military use.

"Aerospace is in high gear at this time," Chenevert said, referring to his company.

(For summit blog: summitnotebook.reuters.com/)

(Reporting by Julie Vorman; Editing by Jeffrey Benkoe)