Azul Becomes New Rolls-Royce Customer

RNS Number : 3379F

Rolls-Royce Holdings plc

23 April 2014

AZUL BRAZILIAN AIRLINES BECOMES NEW ROLLS-ROYCE CUSTOMER AND SIGNS ENGINE SERVICES AGREEMENT WORTH $400M

Azul Brazilian Airlines today became a new Rolls-Royce customer with the announcement that it is to operate 11 Trent-powered Airbus aircraft. The airline has also signed an agreement worth $400m for TotalCare® engine service support.

Azul, formed in 2008, will operate six Airbus A330-200 and five Airbus A350-900 XWB aircraft powered by Trent 700 and Trent XWB engines respectively. The Airbus A350 aircraft will be leased from ILFC.

David Neeleman, Azul, Chief Executive Officer, said: "The announcement of our first widebody aircraft marks a new era in the history of our airline and we are pleased the aircraft will be Rolls-Royce powered."

Bruce Blythe, Rolls-Royce, Senior Vice President - Customers, Civil Large Engines, said: "We are proud to be part of the Azul story and delighted that it has put its trust in Trent engines to power its widebody fleet. Our TotalCare support will help Azul to maximise aircraft availability and manage maintenance costs. We look forward to supporting the airline's continued expansion for many years to come."

The Trent 700, the only engine specifically designed for the A330, delivers the best fuel burn, emissions and noise performance on the aircraft. The engine is the market leader on the A330 with almost 70 per cent of new orders over the last three years. More than 1,500 Trent 700s are either in service or on order.

The Trent XWB, the world's most efficient aero engine and specifically designed for the A350 XWB, is the largest-selling Trent engine ever, with more than 1,600 already sold.

About Rolls-Royce Holdings plc

1. The TotalCare order announced today will result in an increase in the Group's order book of $100m, in accordance with Group accounting policy.

2. 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.

3. 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, Rolls-Royce and Daimler announced that they have agreed the valuation of Daimler's 50% equity interest. The transaction is expected to complete within the coming months and is subject to the usual regulatory approvals.

4. 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.

5. 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.

6. 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.

7. 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.

8. Rolls-Royce employs over 55,000 people in 45 countries. Over 17,000 of these are engineers.

9. 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:

Media:

Richard Wray

Director of External Communications

Rolls-Royce plc

Tel: +44 (0)7974 918416

richard.wray@rolls-royce.com

Investors:

Simon Goodson

Director - Investor Relations

Tel: +44 (0)20 7227 9237

simon.goodson@rolls-royce.com