Rolls-Royce to power Saudi Arabian Airlines in deal worth up to $900M

Wednesday, 8 April 2009

Rolls-Royce, the global power systems company, will power Saudi Arabian Airlines aircraft in an order worth up to US$900m at list prices. The contract will include a long-term service agreement.

Trent engines, selected by the airline for the first time, will power up to 12 (eight firm and four option) Airbus A330 aircraft, with deliveries beginning in 2010. The Trent 700EP (Enhanced Performance) features reduced fuel burn and emission levels.

Phil Harris, Rolls-Royce Senior Vice President Airlines – North Asia and Middle East, said: “This important order marks another stage in the development of our relationship with the Kingdom of Saudi Arabia. The superior technology in the Trent 700EP, backed up by a comprehensive TotalCare service package, will deliver significant benefits for Saudi Arabian Airlines.”

Ali Milaat, Managing Director Technical Services Strategic Business Unit of Saudi Arabian Airlines, said: “Rolls-Royce Trent 700 engines have an excellent reputation and we are pleased to bring them onto our new fleet. Maintaining efficiency and performance in a highly competitive market is vitally important and Rolls-Royce technology and TotalCare service will enable us to reach our targets.”

Currently, Saudi Arabian Airlines operates a fleet of 14 Boeing 747 –100, -200, -SP and –300 aircraft powered by Rolls-Royce.

Rolls-Royce has secured more than 70 per cent of the A330 market over the last three years and eight of the nine Middle East A330 operators have selected Trent 700 engines to power their fleets. This combination is particularly suitable for Middle East operations, where outstanding performance in hot and high altitudes/locations enables operators to fly further with more passengers.

  1. The Trent 700 is the only engine on the A330 that has been specifically designed for the aircraft, resulting in better lifetime performance, reliability and maintenance costs. It has accumulated more than 10 million hours of operating service. The Trent 700EP further reduces engine fuel burn by 1.3 per cent. The Trent is the world leader in the large turbofan sector
  2. Rolls-Royce, a world-leading provider of power systems and services for use on land, at sea and in the air, has established a strong position in global markets - civil aerospace, defence aerospace, marine and energy. In each sector, Rolls-Royce offer value-added long-term service agreements for customers and operators.
  3. Rolls-Royce has recently established Rolls-Royce Saudi Arabia LLC, a wholly-owned subsidiary with offices in Riyadh. This will enable Rolls-Royce to trade directly in Saudi Arabia for services and to bring the necessary people into the Kingdom. The organisation was formed in response to the Group’s growing business interests in the Kingdom and to improve customer support.
  4. In 2008, Rolls-Royce and its partners invested over £800 million on research and development, two thirds of which has the objective of further improving the environmental aspects of its products. The primary technology investment area is aimed at reducing noise and emissions.
  5. Annual sales were £9.1 billion in 2008, of which 52 per cent came from services revenues. The firm and announced order book at the end of 2008 stood at £55.5 billion, of which aftermarket services represent 26 per cent, providing visibility of future levels of activity.

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