Sept 11 (Reuters) - RTX is open to pruning and

pairing its existing businesses rather than pursuing

"transformative" mergers and acquisitions, the aerospace giant's

CEO said on Wednesday.

Speaking at a conference organized by Morgan Stanley, CEO

Christopher Calio pointed to the second-quarter divestment of

its Goodrich Hoist and Winch business as an example of the deals

the company might do.

RTX emerged from a $121 billion combination of United

Technologies Corp and Raytheon Co in 2020 and now houses

businesses such as civil aircraft engine maker Pratt & Whitney

and aerospace supplier Collins Aerospace.

The company counts planemakers Boeing ( BA ) and Airbus

as customers.

Calio on Wednesday said RTX was working with Boeing ( BA ) on

calbirating its production rates for 2025 and beyond as the U.S.

planemaker is currently producing its best-selling 737 MAX

aircraft at a lower rate due to an ongoing crisis.

"Obviously we've got a lot of capacity above and beyond what

those rates are today. So making sure that we're calibrated to

where that's going and that we've got the right level of

inventory to support that," he said.

Defense demand continues to be strong, with RTX's weapons

business Raytheon garnering $8 billion in bookings so far in the

third quarter, Calio added.

RTX is also working on a hybrid-electric technology

demonstrator that combines a thermal engine with electric motor,

with a goal to improve fuel efficiency by 30%.

Calio said RTX was focused on the durability of the engine,

having learned lessons from recent quality issues surrounding

its GTF engines. He sees the next generation propulsion

penetrating the small aircraft market first.