Rolls-Royce Predicts Asian Influence in Engine ...

23 March, 2005

 ROLLS-ROYCE PREDICTS GROWING ASIAN INFLUENCE IN US$550BN COMMERCIAL AIRCRAFT  
                                 ENGINE MARKET                                 

Rolls-Royce today highlighted China as a key area for growth as the commercial
airline market continues to expand.

Airline passenger traffic grew by 47 per cent in China in 2004, and this is
expected to be the fastest growing region over the next 20 years. Airline
traffic will grow by 9 per cent per annum, creating a requirement for 2,300
aircraft.

North America is expected to grow at 3 per cent each year, creating demand for
over 7,000 new commercial aircraft for the replacement of existing fleets and
growth.

In total, over the next 20 years, Rolls-Royce predicts a worldwide market for
96,000 new civil aircraft engines, worth US$550 billion, with a similar figure
forecast for potential aftermarket service opportunities.

Around 63,000 engines, worth US$495 billion, are expected to be delivered to
commercial airlines over the period, with a further 33,000 engines, worth US$55
billion, required for corporate jet markets.

The figures were released today in the latest 20-year Rolls-Royce Civil
Aerospace Market Outlook, presented at the Speednews Conference in Los Angeles.
This report covers forecast aircraft and engine demand for mainline and
regional airlines, and corporate jets, for the period 2005-2024.

The forecast covers aircraft ranging in size from small business jets up to the
largest airliners. Strong demand is seen across the aircraft spectrum, with
increasing airline and airport liberalisation driving growth in many
international and domestic markets.

Over 40 per cent of the predicted demand is in the twin-aisle aircraft sector,
where the Rolls-Royce Trent family of engines has won half of the
new-generation market. This sector will continue to grow, driven mainly by
rapid Asian expansion.

In the corporate jet market, Rolls-Royce predicts deliveries of 15,400
aircraft, including 3,650 in the large business jet category, such as the
long-range Bombardier and Gulfstream families, powered by Rolls-Royce BR710
engines.

Rolls-Royce has increased its market share for commercial jet engine orders
from less than 10 per cent in the 1980s to a figure of 40 per cent last year.

This success, based on a consistent long-term strategy of investing in
technology and capability to create a competitive product portfolio, has seen
the installed base fleet of engines increase by 32 per cent since 2000, with an
even faster increase in engine flying hours.

This increase in hours operated by the Rolls-Royce fleet supports the
aftermarket service opportunity. The engines to be delivered over the next 20
years create a further potential market worth around US$500 billion.

For a copy of the full presentation, please visit:

www.rolls-royce.com/civil_aerospace/overview/market/outlook/default.jsp

For further information contact:

Annalie Brown
Communications Manager, Civil Aerospace

Rolls-Royce
PO Box 31
Moor Lane
Derby DE24 8BJ

Tel: [phone]
Fax: [phone]

Email: [e-mail]