Re Contract
4 February, 2008
ROLLS-ROYCE TRENT EXTENDS GLOBAL CUSTOMER BASE WITH
$1.5BN IN NEW ORDERS AND TOTALCARE CONTRACTS
Rolls-Royce today announced that four customers in Europe, Asia and the US have
selected three variants of the Trent aero engine family to power passenger and
freighter aircraft. All the engines will be supported by TotalCare contracts.
The potential value of the business is worth more than $1.5 billion at list
prices to Rolls-Royce.
This brings the total amount of Trent engine and TotalCare business for Airbus
and Boeing aircraft announced since the start of 2008 to more than $5.5
billion. Aircraft deliveries are scheduled to begin between 2009 and 2016.
Mark King, President - Civil Aerospace, said: "The importance of the orders we
have received already this year is that they give us continued visibility of
the future shape of the civil aerospace business in terms of production and
long-term service agreements.
"They also demonstrate the success of our consistent strategy. We continue to
grow our installed base by offering operators new and proven technology
supported by innovative TotalCare packages."
Two of the new orders are for Trent 700s to power A330 Freighter aircraft from
MatlinPatterson Global Advisors LLC of the US and Turkey's MNG Airlines,
confirming the engine's position as the market leader with 70 per cent of
orders.
MatlinPatterson, through an affiliate, is acquiring six freighters for leasing
to some of its aerospace portfolio companies. With TotalCare, the value of the
business is more than $500 million at list prices.
MNG Airlines, Turkey's leading cargo operator, has chosen the Trent for two
firm and one option A330 Freighters, with a potential value of $180 million at
engine list prices, including a TotalCare contract. This is also the first
Trent order from Turkey.
Spanish flag carrier Iberia has confirmed Trent 500s to power an additional
three firm and three option Airbus A340-600s, which would bring the airline's
Rolls-Royce powered A340 fleet to 19 aircraft if all the options are exercised.
The potential value of this additional business at list prices, including
TotalCare, is $600 million.
Bangkok Airways has placed orders for four firm and two option A350 XWB
aircraft powered by the Trent XWB to power up to six A350 XWB aircraft. With
TotalCare, the value of the business at list prices is up to $250 million.
Notes to editors
Details of Trent business announced so far this year are as follows:
2008 Order details Value
4 January Air Astana selects Trent 1000 for three firm $90 million
Boeing 787s in addition to purchase rights
for three more aircraft
8 January Thai Airways International selects Trent 700 $500 million
for eight A330-300s, with TotalCare
22 January Air Europa selects Trent 1000s for eight $560 million
Boeing 787-8s, with TotalCare
22 January LAN Airlines of Chile selects Trent 1000s *See ILFC
for six Boeing 787-9s leased from July 6 2007
International Lease Finance Corp
22 January China Airlines selects Trent XWB engines for $1.3 billion
up to 20 A350 XWB aircraft with TotalCare
24 January Hong Kong Airlines selects Trent 1000 for 20 $1.2 billion
A330-30s with TotalCare
29 January Oman Air selects Trent 700s to power up to $460 million
seven A330 aircraft with TotalCare
4 February MatlinPatterson selects Trent 700s for six $500 million
A330 Freighters
MNG Airlines selects Trent 700s for up to $180 million
six A330 Freighters
Bangkok Airways confirms Trent XWB for up to $250 million
six A350 XWB aircraft
Iberia confirms Trent 500s for six A340-600s $600 million
(All four operators have chosen TotalCare
contracts)
*Rolls-Royce announced that International Lease Finance Corporation (ILFC)
chose Trent 1000 engines to power 40 of 74 Boeing 787 Dreamliners it has on
order. The contract is valued at $1.3 billion at engine list prices.
1. The Trent XWB is the only engine offered on the A350 XWB and a single
version, with a thrust range of 74,000 - 92,000lb, will be capable of
powering all variants of the aircraft. The engine will run for the first
time in 2010, with flight testing on the A350 XWB starting in 2012.
2. 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 is also the quietest and cleanest
option on the A330, with the greatest margin to CAEP 4 legislation. A
programme of continuous improvement, involving the introduction of the
latest Trent family technology to the Trent 700, will ensure increased
benefits to customers, such as the lowest fuel burn of any engine on the
aircraft.
3. The Trent 500 is the sole powerplant on growth versions of the four-engined
A340, which began commercial operations in 2002. It has been designed
specifically to meet the requirements of the aircraft, with thrusts ranging
from 53,000 lb to 56,000 lb. Nineteen customers have ordered 156 Trent
500-powered A340s.
4. TotalCare, tailored for individual operators, offers a range of services
from Rolls-Royce covering all aspects of asset management in support of its
Civil Aerospace products. Building on the company's knowledge, experience
and infrastructure, these services include elements such as predictive
maintenance, logistics management, and global repair and overhaul
offerings. TotalCare can remove uncertainties from engine management and
improve operational reliability for operators through a mutually aligned
business relationship.
5. Since 2001, 80 per cent of new Trent orders have included TotalCare.
6. Rolls-Royce is working hard to improve the environmental impact of its
products. Each year Rolls-Royce, in collaboration with its partners,
invests around £750 million on research and development, two thirds of
which has the objective of reducing the environmental impact of its
products. This technology investment is primarily aimed at reducing noise
and emissions.
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For further information please contact:
Mark Alflatt
Director of Financial Communications
Rolls-Royce plc
Tel: +44 (0) 207 222 9020
Email: mark.alflatt@rolls-royce.com
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