Rolls-Royce record orders at Paris air show demonstrate strength of portfolio

Friday, 22 June 2007

Rolls-Royce confirmed today that it had secured business worth a total of $15.1 billion at the Paris air show.

On the eve of the show, the company was selected to power the C-27J transport aircraft for the US armed forces, and also signed an agreement to develop a new corporate jet engine for Dassault. During the air show, commitments were announced for 728 engines on a total of 355 aircraft.

New customers were announced in Latin America and Russia, joining those from the Middle East, Asia, Europe and America who also placed orders.

Rolls-Royce has the broadest portfolio of power systems and services in the aerospace industry. The Group provides engines for more than 30 types of civil aircraft, and its products are in service with 41 of the world’s top 50 airlines and cargo carriers and 160 armed forces.

Sir John Rose, Chief Executive of Rolls-Royce, said: "The breadth and balance of the portfolio enables Rolls-Royce to develop new products and services at lower cost and lower risk, and to satisfy a wide range of customer requirements. We are able to apply advances in technology across our portfolio, and continuously improve the environmental impact of our products.

"Our portfolio also creates a more robust business by ensuring that the Group is not over-dependent on the success of any one sector or programme. The benefits of this portfolio approach have been illustrated by the success which Rolls-Royce has enjoyed at the Paris air show."

A good example of the advantages of having a broad portfolio is in the defence sector where Rolls-Royce was selected as propulsion system provider for C-27J transporters in the Joint Cargo Aircraft (JCA) programme for the US Army and US Air Force. Engines and aftermarket services for the first 78 aircraft are worth more than $500 million over the life of the JCA programme.

The AE 2100D2 turboprop for the JCA shares 80 per cent commonality with the AE 3007 turbofan and the AE 1107C-Liberty turboshaft. This family of engines powers seven different aircraft platforms, including transporters, unmanned air vehicles, regional jets, seaplanes and surveillance aircraft. To date, we have delivered almost 4,000 engines across this range of programmes.

Rolls-Royce further broadened its portfolio by signing a ground-breaking agreement with Dassault Aviation to provide a new engine for the next-generation Falcon business jet. Rolls-Royce is the world’s leader in this market, providing engines for Bombardier, Cessna, Embraer and Gulfstream.

This is the first time Rolls-Royce has partnered with Dassault in this sector. The 10,000lb thrust-class engine being developed for Dassault is the first of a new family designed to address opportunities in the corporate and regional aircraft sector.

Four versions of the company’s high-thrust Trent engine series were ordered during the air show by 17 airlines, freight carriers and leasing companies. Rolls-Royce won commitments for 508 Trent engines on the latest Airbus and Boeing aircraft. The Trent order backlog has increased by 40 per cent as a result of this week’s announcements, taking commitments for the Trent family to 3,200 engines, of which over 1,400 have been delivered.

Rolls-Royce now has the biggest market share - 47 per cent - of engines for modern wide-bodied aircraft.

The Trent 900 and Trent 1000 hold launch positions on the A380 and Boeing 787 respectively, while the Trent 500 is the sole engine for latest versions of the A340. The sixth member of the family, the Trent XWB, is currently the only engine offered on the new A350 XWB twinjet.

The Trent XWB was the subject of the Group’s largest-ever single order – worth $5.6 billion including a long-term TotalCare® aftermarket agreement – from Qatar Airways. In addition, the A350 XWB received a total of 141 firm orders from five customers during the show, including Aeroflot, Singapore Airlines and lessors Alafco and CIT. Airbus received commitments for 52 aircraft from four additional customers - US Airways, Kingfisher, Libyan Airlines and Afriqiyah.

Orders for the A340-500 and –600 from Etihad and Kingfisher resulted in business for the Trent 500.

The Trent family demonstrates the way Rolls-Royce introduces incremental new technology for the benefit of customers, as well as using it to enhance the in-service performance of earlier engines.

The Trent 700, which has been upgraded through the introduction of Trent 1000 technology, received orders for 140 engines for A330 twinjets, including the freighter version from International Lease Finance Corporation (ILFC) and from new customers Avianca of Colombia, Russia’s Aeroflot, AirAsiaX of Malaysia and the Intrepid Group of America.

Orders were received from Avianca and Flyglobespan for the Trent 1000 to power the Boeing 787 Dreamliner. During the air show, the Trent 1000, which is the launch engine on the Dreamliner, made a successful maiden flight on the Rolls-Royce flying test bed at Waco, Texas.

The first set of engines is being installed on the initial Boeing 787 ahead of roll-out in Seattle next month.

The V2500, produced by International Aero Engines, in which Rolls-Royce is a senior partner, received orders at the air show for 220 engines, of which the value to Rolls-Royce is $900 million. The V2500 is a good example of a successful international collaboration between Rolls-Royce and companies in the US, Germany and Japan.

Details of the orders secured to date by Rolls-Royce at the air show, are set out in the attached table.

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