Re Contract
September 14, 2006
ROLLS-ROYCE AE 3007 ENGINE POWERS
HAINAN AIRLINES 50 ERJ 145 REGIONAL AIRCRAFT ORDER
Rolls-Royce confirmed today that Hainan Airlines Group Company Ltd. has ordered
50 Embraer ERJ 145 aircraft powered by the Rolls-Royce AE 3007 engine. The
order is potentially worth more than $500 million. Deliveries are due to start
in 2007.
The agreement is for more than 100 engines and includes a long-term TotalCare®
services agreement.
Ian Aitken, President, Rolls-Royce Corporate & Regional Aircraft said: "This
order is an important affirmation of the global potential for regional
aircraft, particularly in expanding markets such as Asia. The AE 3007 engine,
with its 10-year history of reliability on the ERJ 145 aircraft will serve this
region well. We are proud that Hainan, which became part of the Rolls-Royce
family in July when it selected the Trent 700 for seven A330s, has added to its
fleet of Rolls-Royce engines."
Rolls-Royce has delivered more than 1,900 AE 3007 engines to Embraer since the
ERJ145 entered service in 1996. The fleet has accumulated more than 19 million
hours, and the same number of cycles.
NOTE TO EDITORS
1. The AE 3007 engine series accumulates more than 300,000 flying hours per
month - equivalent to an average of one take-off or landing every 20
seconds. There are more than 900 Embraer ERJ 135s, ERJ 140s and ERJ 145s in
civil, military and corporate operations globally. The AE 3007 engine is
approaching the 25 million hour milestone among all applications and nearly
2,000 engine deliveries.
2. Approximately 90 percent of the Rolls-Royce regional fleet is covered by
TotalCare contracts. Under these comprehensive and individually tailored
services packages, Rolls-Royce is responsible for engine fleet maintenance,
with airlines paying an agreed dollar rate per flying hour.
3. TotalCare agreements, tailored for individual customers, offer a range of
services extending to aspects of support such as provision of lease
engines, as well as repair and overhaul. Rolls-Royce takes full
responsibility for care of the engine fleet in return for payment by the
customer on an agreed dollar rate per flying hour.
4. Rolls-Royce powered aircraft are currently operating with ten Chinese
airlines, including those based in the Hong Kong and Macao SARs.
5. China, where Rolls-Royce has had a presence for more than 40 years, is a
significant market for the company's aviation, marine and energy products,
and a manufacturing partner of growing importance. Rolls-Royce has offices
in Beijing, Shanghai, Dalian and Hong Kong, and recently opened a new
marine facility in Shanghai. The company is also involved in two joint
ventures - Hong Kong Aero Engine Services Limited (HAESL) in Hong Kong, and
Xian Rolls-Royce Aerocomponents (XRA) in Xian.
6. The growth potential in the Asian marketplace highlights Rolls-Royce recent
20-year engine forecast that calls for more than 6.6 percent growth
year-on-year for a demand of 6,500 engines through 2026.
7. Rolls-Royce has a broad customer base comprising nearly 600 airlines, 4,000
corporate and utility aircraft and helicopter operators, 160 armed forces
and more than 2,000 marine customers, including 70 navies. The company has
energy customers in nearly 120 countries. Rolls-Royce employs around 36,000
people, of which 22,000 are in the UK. Forty percent of its employees are
based outside the UK - including nearly 5,000 in the rest of Europe and
nearly 8,000 in North America.
8. The large installed base of engines generates demand for the provision of
services. The company seeks to add value for its customers with aftermarket
services that will enhance the performance and reliability of its products.
Services revenues have grown by 11 percent per annum compound over the past
ten years. Annual sales total £6.6 billion, of which 54 per cent are
services revenues. The firm and announced order book is more than
£25 billion, which, together with demand for services, provides visibility of
future levels of activity.
For more information, please contact:
Tom Sullivan
Senior Manager, Corporate Communications
Rolls-Royce North America Inc.
Tel: (703) 621-2841
Email: tom.sullivan@rolls-royce.com
Gary Atkins
Communications Manager
Rolls-Royce plc
Tel: 44 (0)1332 269911
Email: gary.atkins@rolls-royce.com
Website: www.rolls-royce.com