MTU says business case for A380 engine upgrade 'challenging'

BERLIN/PARIS, Oct 23 (Reuters) - The business case for developing new engines for the Airbus A380 to boost sales of the world's largest airliner is "challenging," a partner in one of its engine suppliers said on Thursday.

"In principle, it's a challenging business case, whether it makes sense to develop an engine just for the A380 bearing in the mind the potential order book," Reiner Winkler, chief executive of MTU Aero Engines (Other OTC: MTUAF - news) , told analysts.

"You've seen the volumes. That's a decision for Airbus and the OEMs (manufacturers). We don't see any risk for our existing order book," he said on a conference call on the German engine maker's third-quarter earnings.

MTU supplies an important set of parts for GP7000 engines built for the A380 by Engine Alliance, a joint venture between General Electric and Pratt & Whitney.

Engine Alliance competes with Rolls-Royce to supply engines for the 525-seat airliner. Sales of the double-decker jet have been patchy, prompting European planemaker Airbus to consider whether to upgrade it with new engines. (Reporting by Victoria Bryan and Tim Hepher; Editing by James Regan)