Asiana Airlines agrees engines and services business with Rolls-Royce for Airbus A350 XWB fleet

Wednesday, 16 July 2008

Rolls-Royce said today that it had reached an agreement with Asiana Airlines of South Korea to supply Trent XWB engines for 30 firm and 10 option Airbus A350 XWB aircraft. Asiana will be the first Korean customer for the Trent aero engine.

If all options are realised, the value of the engine order at list prices is $2.4 billion. In addition, Asiana Airlines will back the Trent XWBs with a long-term TotalCare® agreement.

This is the first time Rolls-Royce has been chosen as an engine supplier by Asiana Airlines, although the airline operates a number of Airbus A320 and A321 aircraft powered by the V2500 engine, in which Rolls-Royce is a major shareholder.

Young-Doo Yoon, Executive Vice President of Asiana Airlines, said: "The advanced technologies and high operational efficiency of the Trent XWB will make it an outstanding addition to our fleet. We are also focused on improvements to our environmental profile, and there is no doubt that this latest Trent will make a significant contribution in that area.”

Mark King, President, Civil Aerospace, Rolls-Royce, added: “We look forward to establishing a valuable, long-term relationship with Asiana Airlines, which has a deserved reputation as an innovative and forward-looking carrier. Korea represents an important market for Rolls-Royce and I am delighted that we are able to expand our interests in Korea through this first Trent selection.”

The first Trent XWB is scheduled to begin ground testing in 2010 and will make its maiden flight on the new Airbus twinjet in 2012.

  1. The Trent XWB is available in a range of thrusts from 74,000 to 92,000 lb. A single engine type will power all versions of the A350 XWB. By the time the Trent XWB enters service, Trent series engines will have accumulated more than 75 million flying hours.
  2. Asiana Airlines currently operates a fleet of 69 narrow and wide body aircraft and flies both passenger and cargo services. Besides serving 12 cities domestically, Asiana Airlines route network includes passenger services to 66 international cities in 21 countries.
  3. Rolls-Royce’s strategy is to create an engine for every airframe, which has resulted in the Trent XWB being tailored specifically for the aircraft. The strategy has also given Rolls-Royce has a leading 50 per cent market share on modern widebody aircraft, with more than 1,400 Trent engines in service on over 550 aircraft and around a further 2,500 on backlog. Each of its six Trent engines has either been the first or launch engine on the airframe, or has gone on to take the leading market share.
  4. Revenue from aftermarket services comprises 63 per cent of Rolls-Royce Civil Aerospace revenues. Today, more than 55 per cent of the company’s modern jet engine fleet is covered by TotalCare® or CorporateCare® service agreements.
  5. With around 80 per cent of civil engine orders announced by Rolls-Royce in the past 18 months incorporating service arrangements, the proportion of fleet coverage will continue to rise, giving increased visibility of revenues.
  6. Rolls-Royce powers over 300 aircraft in Korea, with over 500 engines in service with Asiana Airlines, Government agencies and all three of Korea’s armed forces. Rolls-Royce waterjets, propellers, ship lifts are also in service with the Korean Navy and the Korea Coast Guard.
  7. Asia is a key growth area for Rolls-Royce. In 2007, the combined order book for the Middle East and Asia more than doubled to £20 billion – equal to the total value of the company’s order book four years ago.
  8. Rolls-Royce is working hard to improve the environmental impact of its products. Each year the company, in collaboration with its partners, invests over £800 million on research and development, two thirds of which has the objective of reducing the environmental impact of its products. The primary technology investment area is aimed at reducing noise and emissions.
  9. TotalCare, tailored for individual operators, offers a range of services from Rolls-Royce covering all aspects of asset management in support of its Civil Aerospace products. Building on the company’s knowledge, experience and infrastructure, these services include elements such as predictive maintenance, logistics management, and global repair and overhaul offerings. TotalCare can remove uncertainties from engine management and improve operational reliability for operators through a mutually aligned business relationship.

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