Rolls-Royce signs TotalCare® deal with United Airlines

Tuesday, 15 July 2014

Rolls-Royce has signed a contract with United Airlines to extend TotalCare® service support for the lifetime of RB211-535 engines operated by United on Boeing 757 aircraft.  

The innovative agreement incorporates ideas from Rolls-Royce TotalCare Flex - a concept currently in development that focuses on the most effective management of mature engines.

Gerry Laderman, United Airlines Senior Vice President, Finance, Procurement & Treasurer said: "We have been very happy with the support we have received from Rolls-Royce through TotalCare for the RB211-535 engine and are pleased that the program can be adapted specifically for our needs with these engines."

Jacqui Sutton, Rolls-Royce, Senior Vice President - Customers, Civil Large Engines, said: "We are focused on ensuring operators maximise value through every stage of the engine life cycle. We have worked closely with United to find ways of evolving TotalCare, and that will inform how we develop TotalCare Flex for the future."

The new deal is the latest development in the successful long-term relationship between Rolls-Royce and United Airlines. At the Paris Air Show in 2013, United Airlines announced an order for 10 Airbus A350 XWB aircraft and the conversion of 25 A350-900s to A350-1000s, all to be powered by Rolls-Royce Trent XWB engines.

TotalCare long-term service agreements are designed to minimise customer financial risk and improve operational performance and reliability, allowing operators to concentrate on their core business.

The RB211-535 powers over 500 Boeing 757 aircraft around the world and 60 percent of Boeing 757 operators have selected the engine.

About United

  1. United Airlines and United Express operate an average of more than 5,200 flights a day to 369 airports across six continents. In 2013, United and United Express carried more passenger traffic than any other airline in the world and operated nearly two million flights carrying 139 million customers. United operates nearly 700 mainline aircraft and, in 2014, will take delivery of 35 new Boeing aircraft, and will welcome 27 new Embraer aircraft to United Express. The airline is a founding member of Star Alliance, which provides service to 195 countries via 27 member airlines. More than 85,000 United employees reside in every U.S. state and in countries around the world. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the NYSE under the symbol UAL.

About Rolls-Royce Holdings plc

  1. Rolls-Royce's vision is to create better power for a changing world via two main business segments, Aerospace and Marine & Industrial Power Systems (MIPS). These business segments address markets with two strong technology platforms, gas turbines and reciprocating engines, for use on land, at sea and in the air.
  2. Aerospace comprises Civil Aerospace and Defence Aerospace. MIPS comprises Marine, Energy & Nuclear and Power Systems (RRPS). On 7 March 2014, Daimler announced their intention to exercise their option to sell their 50% share in RRPS to Rolls-Royce Holdings plc. On 16 April 2014, the valuation was agreed and the transaction is expected to complete within the coming months, subject to the usual regulatory approvals. On 6 May 2014 Rolls-Royce announced it had signed an agreement to sell its Energy gas turbine and compressor business to Siemens for a £785m cash consideration. On completion, expected before the end of December 2014, Rolls-Royce will receive a further £200 million for a 25 year licensing agreement.
  3. Rolls-Royce has customers in more than 120 countries, comprising more than 380 airlines and leasing customers, 160 armed forces, 4,000 marine customers, including 70 navies, and 1,600 energy and nuclear customers.
  4. Our business is focused on the 4Cs:
    • Customer - placing the customer at the heart of our business
    • Concentration - deciding where to grow and where not to
    • Cost - continually looking to increase efficiency
    • Cash - improving financial performance.
  5. Annual underlying revenue was £15.5 billion in 2013, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £71.6 billion at 31 December 2013.
  6. In 2013, Rolls-Royce invested £1.1 billion on research and development. We also support a global network of 31 University Technology Centres, which position Rolls-Royce engineers with the forefront of scientific research.
  7. Rolls-Royce employs over 55,000 people in 45 countries. Over 17,000 of these are engineers.
  8. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2013 we employed 379 graduates and 288 apprentices through our worldwide training programmes.

For further information, please contact:

Investors:
Simon Goodson
Director, Investor Relations
Rolls-Royce plc
Tel: +44 (0)20 7227 9237
Email: simon.goodson@rolls-royce.com

Media:
Richard Wray
Director of External Communications
Rolls-Royce plc
Tel: +44 (0)20 7227 9163
Mobile +44 (0)7974 918 416
Email: richard.wray@rolls-royce.com

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