Performance summary
In Civil Aerospace, installed engine sales and aftermarket shop visit activity are both lower than the prior year and at the lower end of the guidance given at the half year. Large engine flying hours have continued to recover gradually helped by the reopening of certain key travel corridors, especially the trans-Atlantic routes. The pace of travel recovery remains uneven as countries around the world look to manage the ongoing challenges of the COVID-19 pandemic. Our large engine flying hours are currently around 50% of 2019 levels and approximately 46% year to date as compared to the 43% average for the first half of the year. Engine flying hours in business aviation remain above the 2019 level.
Current trading in Defence is in line with our expectations with steady demand from our customers. In September, we were successful in the B-52 replacement engine competition with an agreement to power the US fleet of 76 eight-engine aircraft for the next 30 years, with a total value of $2.6bn. The initial phase of the contract is for testing and development with a value of around $500m.
In Power Systems, the recovery of customer demand in many of our end markets is driving improvements in order intake. As a business with a shorter cycle and higher inventory turnover than Civil Aerospace and Defence, Power Systems has a greater exposure to the current global supply chain disruption. The significant near-term supply chain pressure looks set to continue for some time. Our focused supply chain reporting and procurement practices are helping to mitigate the impact in 2021 and we are closely monitoring the business risk for 2022.
Rolls-Royce SMR has moved into its second phase with the foundation of a special purpose vehicle with new investors raising funds totalling £145m in exchange for approximately 20% of the equity, in addition to a £50m commitment from Rolls-Royce, and matched funding from the UK Government of up to £210m. These funds support the UK Generic Design Assessment process for new nuclear power plants and identification of factory sites for the manufacture of the power plant modules.
In Rolls-Royce Electrical, we are very proud to claim that our Spirit of Innovation is the world’s fastest all- electric aircraft, hitting a top speed of 345mph – well over 100mph faster than the previous world speed record over a 3km distance. In addition to this achievement being tremendously uplifting for our people, the programme has provided valuable insights into the requirements of aerospace battery systems for applications in new markets.