Rolls-Royce wins $272 million share of V2500 order from Lufthansa
Tuesday, 27 January 2009
Rolls-Royce will share in an order by Lufthansa to power a new fleet of 20 Airbus A321s plus options with V2500 SelectOne™ engines from the International Aero Engine (IAE) consortium. The value to Rolls-Royce is approximately US$272 million if all options are exercised. Deliveries are due to commence in 2009.
Lufthansa has extensive experience of operating the V2500 and the airline today celebrates 15 years of V2500 operation covering 33 aircraft.
Nico Buchholz, Senior Vice President, Corporate Fleet Planning at Lufthansa said: “We know that the V2500 is an excellent powerplant option for the A321, and with the additional benefits generated with the latest V2500 SelectOne™ standard, we can achieve a significant reduction in our operating costs. In the current economic environment, this is a major advantage for us.”
Rolls-Royce is a senior shareholder in IAE; other partners are Pratt & Whitney, the Japanese Aero Engine Corporation and MTU Aero Engines. The V2500 is available in seven different thrust settings, from 22,000 to 33,000lb, to power the Airbus A319, A320 and A321 family of aircraft as well as the Airbus Corporate Jetliner. More than 5,500 V2500 engines are in service or on firm order.
- 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.
- The Group has a broad customer base comprising more than 600 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces, more than 2,000 marine customers, including 70 navies, and energy customers in nearly 120 countries. It employs around 39,000 people worldwide people in offices, manufacturing and service facilities in 50 countries and has businesses headquartered in the UK, US, Canada, Germany, Scandinavia and China. This global presence allows the Group to access long-term international growth opportunities with its technology, presence, partnerships and people.
- Rolls-Royce continues to invest in core technologies, products, people and capabilities with the objective of broadening and strengthening the product portfolio, improving efficiency and enhancing the environmental performance of its products. These investments create high barriers to entry.
- Each year, in collaboration with its partners, Rolls-Royce invests 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
- Sixty per cent of research and development investment and 40 per cent of new product development spending over the past five years has been outside the UK. Research and development is carried out in facilities in the UK, Germany, Italy, Singapore, Japan, the US and Scandinavia, with particularly strong relationships with the 29 universities where there are Rolls-Royce University Technology Centres.
- Annual sales were £7.4 billion in 2007, of which 55 per cent came from services revenues. The firm and announced order book at the end of 2007 stood at £45.9 billion, of which aftermarket services represent 30 per cent, providing visibility of future levels of activity.