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RRC-VISIT RAF MEMORIAL
Rolls-Royce (RRC) is a major world engine manufacturer.
Great Britain (United Kingdom of Great Britain & Northern Ireland) was established in 1066, it covers an area of 242,432 sq km, its population is 59 million, its capital city is London and its official language is English.
DECEMBER 1998: (GATX) (GAX)/(NGK) HAS A JOINT VENTURE WITH ROLLS ROYCE (RRC) FOR ENGINE LEASING. GATX (GAX)/(NGK) WILL HAVE A 50% STAKE IN (RRC) & PARTNERS FINANCE (RRPF) UNIT, ONE OF THE LARGEST ENGINE LEASING COMPANIES, WITH A PORTFOLIO OF 90 ENGINES. ALAN COE, EXECUTIVE VP (GAX)/(NGK), SAID THIS WOULD CAPITALIZE ON (GAX)/(NGK)'S KNOWLEDGE OF OPERATING AND FINANCE LEASING, WHERE (GAX)/(NGK) HAS AN INTEREST IN 200 AIRPLANES.
FEBRUARY 2001: (GATX) CAPITAL (GAX)/(NGK) BUYS 50% OF PEMBROKE GROUP (PEB). ROLLS ROYCE (RRC) OWNS OTHER 50%. COMBINED COMPANY PORTFOLIO OF >400 AIRPLANES.
May 2006: Rolls-Royce (RRC) is 1 of the world's leading providers of power systems and services for use on land, at sea and in the air. It operates in 4 global markets: civil aerospace, defense aerospace, marine, and energy. It is investing in technology and capability that can be exploited in each of these sectors to create a competitive range of products.
The success of these products is demonstrated by (RRC)'s rapid
and substantial gains in market share over recent years. (RRC) now has a total of 54,000 gas turbines in service world wide. The
investments in product, capability and infrastructure to gain this
market position create high barriers to entry.
(RRC) has a broad customer base comprising nearly 600 airlines, 4,000 corporate and utility airplanes and helicopter operators, 160 armed forces and >2,000 marine customers, including 70 navies. (RRC) has energy customers in nearly 120 countries.
(RRC) employs around 36,000 people, of which 22,000 are in the UK. 40% of its employees are based outside the UK, including nearly 5,000 in the rest of Europe and nearly 8,000 in North America.
July 2008: Sir John Rose Rolls-Royce (RRC) (CEO) said (RRC) delivered a strong set of half year results with pre-tax profits up +8% and order book up +17%. He added the business is a broadly based power systems company that remains resilient during the economic downturn.
February 2009: Rolls-Royce (RRC) released its preliminary results 2008 saying it had delivered a "strong set of results in challenging conditions." In a video interview (RRC) Chief Executive Sir John Rose talked about the group's 2008 performance, the prospects for 2009 and the guidance (RRC) is giving, together with the longer term outlook. The interview and transcript are available now on http://w3.cantos.com/rollsroyce. All that is needed is register at http://www.cantos.com.
Cantos.com, the online financial broadcaster, features in-depth interviews, documentaries and webcasts with senior company executives. For contact, email email@example.com or phone +44-207-936-1333.
(RRC) delivered 987 commercial aviation engines in 2008, up +16% year-over-year and the highest total since 2001. Civil aerospace revenue rose +11% to £4.5 billion/$6.43 billion and the value of (RRC)'a order book climbed +21% to £43.5 billion. The division reported an underlying profit before financing of £566 million, up +0.4% from the prior year. The group's full-year net loss was -£1.35 billion, reversed from a profit of +£600 million in 2007. Financing costs and foreign exchange losses were the principal culprits.
March 2009: The USA (FAA) amended an airworthiness directive (AD) pertaining to (Trent 800)-powered 777s to incorporate new procedures recommended by Boeing (TBC) to prevent the fuel feed system icing that is believed to have caused both the un-commanded loss of thrust on a Delta Air Lines (DAL) 777-200ER last November and the dual rollback that led to the January 2008, British Airways (BAB) 777-200ER crash landing at London Heathrow. The new rules revise in-flight procedures "by reducing the step climb from 3 to 2 hours prior to descent and by requiring flight crews (FC) to retard the throttles to minimum idle for 30 seconds at the top of descent." The (FAA) added that (RRC) presumably (TBC) or Rolls-Royce (RRC) or both, "is currently developing a modification that will address" the fuel feed system icing issue. It said additional rule-making may be considered once the modification "is developed, approved and available." It did not place a timetable on the modification or detail it. The revised (AD) becomes effective on March 20. The (FAA) said a standard notice and public comment period are "impracticable" because of the "critical need to assure the proper functioning of the main tank fuel feed system."
The USA National Transportation Safety Board (NTSB) later issued an "urgent safety recommendation" calling for (RRC) to "redesign" the (Trent 800)'s fuel/oil heat exchanger (FOHE) to prevent the fuel feed system icing that is believed to have caused both the un-commanded loss of thrust on a Delta Air Lines (DAL) 777-200ER last November and the dual rollback that led to the January 2008, British Airways (BAB) 777-200ER crash landing at London Heathrow (LHR).
The UK's Air Accidents Investigation Board issued (AAIB) a 2nd interim report on the (LHR) crash that details extensive testing conducted by Boeing (TBC) demonstrating that the accident likely was caused by (FOHE) ice buildup that restricted fuel flow. "With 2 of these rollback events occurring within a year, we believe that there is a high probability of something similar happening again," (NTSB) Acting Chairman Mark Rosenker said.
The USA (FAA) recently issued an amended airworthiness directive (AD)
pertaining to (Trent 800)-powered 777s to incorporate new procedures recommended by (TBC) to reduce the risk of fuel feed system icing.
But the (NTSB) stated, "While the procedures may reduce the risk of a rollback in one or both engines due to (FOHE) ice blockage, they add complexity to flight crew (FC) operations, and the level of risk reduction is not well established. And because the recovery procedure requires a descent, the airplane may be exposed to other risks." The (NTSB) added that "the only acceptable solution to this safety vulnerability is a redesigned (FOHE) that would eliminate the potential of ice buildup."
While (RRC) has not commented publicly on a redesign, the (NTSB) said that (RRC) "indicated [on February 23] that a redesign of the (FOHE) was underway, and that they anticipated the redesign to be tested, certified and ready for installation within 12 months." (RRC) said that the (AAIB) interim report on the (LHR) incident "clearly states that the (RRC) equipment on this flight met or exceeded all requirements. The report also highlighted the emerging issue of ice build up in commercial 'long-cold-high' routes. This was an industry-wide issue which required detailed research that was likely to shape future regulations and requirements."
(RRC) signed a contract with the (HNA) Group for provision of (Trent 700EP)s to power Hong Kong Airlines (CRY)'s fleet of 20 new A330s. The contract was valued at $1.2 billion at list prices and included a long-term "TotalCare" services agreement. The 1st A330 was scheduled for delivery in 2010. (HNA) already operated (Trent)-powered A330-200s and (Trent 500)-powered A340-600s.
April 2009: Rolls-Royce (RRC) signed a long-term TotalCare engine service agreement worth >$350 million, with the Mexicana (CMA) Group covering 25 (BR715)-powered 717-200s operated by its low-cost subsidiary Mexicana Click (AEB).
(RRC) signed a contract with Saudi Arabian Airlines (SVA) for provision of (Trent 700EP)s to power up to 12 (8 firm and 4 option) A330s ordered at last year's Farnborough Airshow, with deliveries beginning in 2010. The contract is valued at up to $900 million at list prices and includes a long-term TotalCare services agreement. (SVA) already operates 14 (RRC)-powered 747-100s, 747-200s, 747SPs and 747-300s, but this marked the 1st time it has selected the (Trent).
May 2009: International Aero Engines (IAE), the consortium led by Pratt & Whitney (PWC) and Rolls-Royce (RRC) that builds the (V2500) engine for the A320 family, expected to produce nearly as many engines this year as it did in 2008, although (CEO) Jon Beatty said he would not be surprised if both Airbus (EDS) and Boeing (TBC) "had some rate rationalization" in 2010. "I think there's more uncertainty in 2010 than there is in 2009," he said. "We did a pretty good job of predicting the slowdown in 2009. Our production rates really haven't fluctuated that much. We did 360 engines in 2008 and we'll do between 330 and 340 in 2009. There haven't been a lot of cancellations but there have been a fair amount of deferrals in the last 18 months."
The forecast beyond that is murkier, however. In February, Airbus (EDS) announced that it will cut monthly A320 family production to 34 airplanes from 36 in October and has suspended plans to ramp up to 40 next year. "We had hoped they were going to go up to rate 40, but I think it was the right move with the slowdown," Beatty conceded, adding that (IAE)'s production rate for 2010 has not been finalized but that it should resemble this year's. "2010 is the great uncertainty," he said, with (EDS) and (TBC) "both considering some rate rationalization." The big question is when the recovery begins: "I think if it delays into the middle or end of 2010, then we'll probably see some rationalization if we start to come out at the end of 2009, then 2010 could be a pretty good year."
(IAE) continues to claim >50% of the A320 family market but may face an additional challenge from (CFM)'s (CFM56-7B) Evolution engine enhancement program, set to enter service in 2011 on the 737NG. Although marketed exclusively on the 737NG at this point, Beatty said, "You can pretty much assume that most of [the Evolution technology] will also find its way onto the (EDS) product." He said (CFM)'s new offering "would negate 1% of our 4% [fuel savings] advantage, but we've got other things we're working on also. What would scare me is if my shareholders weren't developing technology."
(IAE) also included Germany's (MTU) Aero Engines and the Japanese Aero Engines Corporation consortium. Last year, it introduced its SelectOne build standard on the (V2500), which delivered +1% improvement in fuel burn (Airline Procurement, December 2008).
Regarding an eventual A320/737 replacement airplane, Beatty admitted that (IAE) "would love to be on the (TBC) application" as well. Either way, "(IAE) is the preferred route to market" for (PWC), (RRC) and their partners, he said.
June 2009: Rolls-Royce (RRC) announced a $1.5 billion order from Gulf Air (GUL) for (Trent 700EP) engines that will power 20 A330s. Deliveries are set to start in 2012. The deal includes a TotalCare services agreement and an extension to the TotalCare deal on (Trent 700)s already in service on 10 A330s. (RRC) also signed a 5-year extension to the TotalCare services agreement covering Condor Airlines (CDF)'s fleet of 13 (RB211-535E4)-powered 757s. The initial 10-year deal was set to expire this year; extension is worth some $150 million.
Airbus (EDS) President & (CEO) Tom Enders said (GE) Aviation (GEC) probably will not join the A350 program. "That's a huge mistake on their side," he said. "The program will be very successful. Certainly some airlines would like [an engine] choice but I don't see it as an impediment to the program." (RRC) (Trent XWB)s will power the A350 and he said (RRC) is working hard on delivering more thrust if required.
July 2009: Rolls-Royce (RRC) announced a $470 million (Trent 700EP) order from Turkish Airlines (THY). The engines will power A330s scheduled to begin delivering in 2010.
(RRC) announced a series of investments including construction of a new wide-chord fan blade (WCFB) factory in Singapore and several new UK facilities. The Singapore factory will be a part of (RRC)'s "Facility of the Future" at its Seletar Campus, construction of which will begin in the 2010 1st quarter and which will require an investment >S$700 million/$486 million. The new factory will be its 1st outside the UK to manufacture hollow titanium (WCFB)s, which feature on its (Trent) family of engines.
In addition, (RRC) will invest >£300 million/$494 million in 4 UK factories: A casting facility for single-crystal turbine blades, a new disc machining facility, enhancement of its commercial (WCFB) manufacturing plant in Barnoldswick to accommodate military applications and a new civil nuclear power station facility. It also announced a £90 million research program that will look into development of low-carbon airplane engine technologies (the UK government will fund half) and a £90 million program "to accelerate the development of manufacturing and product technologies" focusing on productivity and environmental improvements.
August 2009: Goodrich (BFG) Corporation said it added electronic engine control accessories to its Maintenance Repair & Overhaul (MRO) capability at its Dubai (MRO) campus. The capability covers all electronic engine controls for Rolls-Royce (RRC) (Trent 500, 700 and 800)-powered airplanes.
October 2009: Rolls-Royce (RRC) began construction of a $500 million facility in Prince George County, Virginia, USA that is slated to open in 2011 and will manufacture engine discs for (Trent 900)s, (Trent 1000)s and (Trent XWB)s. The site, dubbed "Crosspointe," also will be used to "manufacture, assemble and test a range of aerospace components and products," (RRC) said. President & (CEO) North America, James Guyette said the site will be "our 1st manufacturing facility built from-the-ground-up in the USA." It envisions eventually employing 500 workers at Crosspointe, in which it is making a $170 million initial investment.
In addition to manufacturing facilities, Crosspointe will accommodate the Commonwealth Center of Advanced Manufacturing (CCAM), an educational partnership founded by Virginia, the University of Virginia, Virginia Tech University, (RRC) and others. " The vision for (CCAM) is to become a world-class research facility delivering a step change in design and manufacturing technologies," (RRC) said. The Commonwealth Center for Aerospace Propulsion Systems, founded by the same partners, will be housed at the site as well.
November 2009: Rolls-Royce (RRC) announced an order for (Trent 700)s to power 10 Virgin Atlantic Airways (VAA) A330s. The contract, including "TotalCare" service support, is worth $720 million at list prices. 6 of the airplanes were ordered directly by (VAA) and the remaining 4 will be leased from AerCap (DEA) with delivery in 2011.
(RRC) won an order for (Trent 700)s to power 20 A330s ordered by Air China (BEJ) and scheduled to begin delivery in 2011. The contract is worth $1.5 billion, including TotalCare service support.
December 2009: Rolls-Royce (RRC) said the United Airlines (UAL) 25/50 orders A350-900s accompanying (Trent XWB) order, along with a long-term TotalCare service contract, is worth $2 billion at list prices. (UAL) has not chosen between the (GEnx) and (Trent 1000) for the 25/50 orders 787 Dreamliners.
(RRC) announced an order from Aviation Capital Group (CGP) for (Trent 1000) engines to power the 5 787s ordered by the lessor in 2007. The contract is worth $170 million at list prices.
January 2010: International Aero Engines (IAE) announced a (V2500) SelectOne order from Jetstar Airways (IMU) worth up to $1.5 billion comprising engines for 50 A320 family airplanes plus 40 options and purchase rights. (IMU) also signed a $2 billion (IAE) Aftermarket Services agreement covering the newly ordered engines plus those already operating on 40 current airplanes. Rolls-Royce (RRC) said its share of the order was valued at up to $1.2 billion and Pratt & Whitney (P&W) said its share "could exceed" $1 billion, including the aftermarket agreement.
February 2010: Rolls Royce (RRC) won a long-term TotalCare services agreement with Malaysia Airlines (MAS) covering its fleet of 17 777s powered by (Trent 800)s.
The Rolls-Royce (RRC) Group returned to profit in 2009, reporting a +£2.22 billion/+$3.47 billion surplus that compared to a -£1.35 billion loss in 2008. Revenue rose +14.7% to £10.41 billion, with the civil aerospace segment accounting for 56% of that total. (RRC) said it expected 2010 results to be "broadly similar" to last year's. (RRC) delivered 844 engines for civil airplanes last year, down from 987 in 2008. Underlying revenue in the segment dipped -0.5% to £4.48 billion, while underlying profit before financing was down -12.9% to +£493 million. "Volatile trading conditions and the continuing effects of major program delays impacted performance," (RRC) said. The order book jumped in value by +8% to £47 billion as it took orders for 178 (V2500)s and 236 (Trent 700, 1000 and XWB) engines. Underlying profit in the civil aerospace division is expected to be "modestly lower" this year.
April 2010: INCDT: Cathay Pacific Airways (CAT) Captain (FC) and First Officer (FC) are being lauded after successfully overcoming apparent erratic power surges in the A330 they were operating and landing at an unusually high speed at Hong Kong International (HKG) this month. Problems started for the crew of CX Flight 780 en route to (HKG) from Surabaya when the airplane, with 309 passengers and 14 crew (FC) - (CA) aboard, was on descent about 20 minutes from Hong Kong. Its two Rolls-Royce (RRC) (Trent 700) engines began to behave erratically with significant variations in thrust. When the A330 touched down at 239 kt - - 109 kt above the typical landing speed - - the right engine was at idle while the left was delivering 70% thrust. The braking required to stop the airplane led to the tires overheating. A small fire resulted that was doused quickly by firefighters. Eight passengers were injured during the evacuation and (HKG) closed a runway for 2.5 hours.
Hong Kong's Civil Aviation Department said it would investigate the "serious airplane incident" and release a preliminary report within a month. Safety experts from Airbus (EDS) and Rolls-Royce (RRC) were due to arrive in Hong Kong to assist local authorities and the airline with the investigation. (CAT) emphasized that at no time were both engines shut down.
TAM (TPR) signed a Memo of Understanding (MOU) with Airbus (EDS) at the Berlin Air Show for five additional A350-900s. If finalized, the deal would bring (TPR)'s total number of its A350 orders to 27. The five A350-900s will be powered by Rolls-Royce (RRC) (Trent XWB) engines.
June 2010: USA (FAA) Administrator, Randy Babbitt announced at Air Transport World (ATW)'s "Eco-Aviation" Conference that the (FAA) has awarded $125 million to five companies to "develop and demonstrate technologies that will reduce commercial jet fuel consumption, emissions and noise."
The five-year contracts are part of the (FAA)'s Continuous Lower Energy, Emissions and Noise program, or (CLEEN). The five companies:- Boeing (TBC), GE Aviation (GEC), Honeywell (SGC), Pratt & Whitney (PWC), and Rolls-Royce-North America (RRC), each will match the agency's investment dollar-for-dollar, bringing the total (CLEEN) investment to $250 million.
Delivering the keynote luncheon address at the conference in Washington, Babbitt acknowledged that commercial aviation has made "phenomenal progress" over the last decade in becoming more environmentally efficient but said the industry must "do more" to address "a national crisis with our environment that extends well beyond aviation. The (FAA) is going to push as hard as humanly possible to improve aviation's environmental efficiency."
He said technology developed through (CLEEN) "could be introduced into the commercial airplane fleet beginning in 2015. The goals of these research and demonstration efforts include: A reduction in fuel burn by -33%, a reduction of nitrogen oxide emissions by -60% and a reduction in cumulative airplane noise levels by 32 decibels. As early as 2015, you and I could be flying on quieter, cleaner, more efficient airplanes that are operating on alternative fuel."
Boeing (TBC) said it will receive $25 million from the (FAA) and contribute another $25 million to "conduct flight demonstrations of emergent airframe and engine technologies that have the potential of reducing greenhouse gas emissions and community noise." The technologies include adaptive wing trailing edges and ceramic matrix composite acoustic engine nozzles, (TBC) said, adding that they will be flight tested aboard a 737 in 2012 and "a yet-to-be-determined twin-aisle airplane in 2013."
(GEC) said the combined (CLEEN) investment of itself and the (FAA) will be "up to $66 million." (GEC) added that the contract "will help fund…[development of the] TAPS II combustor, open rotor and Flight Management System-Air Traffic Management (FMS-ATM) technologies." (GEC) will work with Lockheed Martin, AirDat and Alaska Airlines (ASA) to develop and demonstrate the technologies.
Honeywell (SGC) said it will use the contract money "to develop mature technology for fuel burn reduction and test aviation biofuels for use in Honeywell (SGC) turbine engines." It will use its (TECH7000) turbofan test engine as the basis for its research and work in conjunction with its (UOP) business.
Pratt & Whitney (PWC) said it will develop and demonstrate "low noise, highly efficient fans" and "low-emissions combustors" as part of the (CLEEN) program.
Babbitt said the "(CLEEN) consortium of companies" will meet twice annually to discuss progress on technological development. Asked which types of alternative fuels the (FAA) is interested in seeing developed, he said, "Everything is on the table."
Rolls-Royce (RRC) celebrated the first run of the (Trent XWB) aero engine. The (Trent XWB) is the fastest-selling Trent engine program ever, with more than >1,000 ordered. It ran for first time on June 17 on a testbed in Derby, UK.
July 2010: Rolls-Royce (RRC) is expecting its full-year profit to be slightly ahead of 2009 levels, although the half-year results were a net loss of -£331 million/-$516.9 million, owing to financing costs.
In reporting half-year results, where underlying profit was up slightly to +£465 million/+$726 million from +£445 million the year before, CEO, John Rose says, “We now expect underlying profit for the full year to be modestly higher than in 2009, mainly due to good cost control and a strong trading performance from our marine business. We
expect a modest cash inflow for the year and average net cash balances to remain at a similar level to the first half.”
The net pre-tax loss of -£475 million compared with a +£2.5 billion gain a year ago largely because the company had to mark-to-market financial instruments.
In the first six months, the order book was flat at £58 billion, with revenue up +7%. Rolls-Royce (RRC) notes that the results do not reflect £1.1 billion in orders announced at the recent Farnborough air
show. Order intake in the first six months stood at £5.9 billion. Also not reflected in the results is Rolls-Royce (RRC)’s share of the £200 million contract to provide Adour engines for India’s deal to produce 57 more Hawk advanced jet trainers. (RRC) will see increases in research- and development-related expenses, with an expected charge to the income statement of £40 million to £50 million, largely
owing to engineering activities on the (Trent XWB), the new engine for the Airbus A350XWB twin-wide body.
Keeping its options open may be the best way to describe Rolls-Royce (RRC)'s approach to the civil engine business these days. In what it describes as "a market-led strategy for the future," (RRC) is proceeding down three distinct development paths. "Two years ago, we felt that we didn't have any view of what the long-term outlook was," VP Strategic Marketing, Robert Nuttall, explained. "So what we decided to do was lay out a plan in which we maintained our ability to deliver technology to customers. We talked about pursuing a two-shaft program, a three-shaft program and an open rotor program" while staying focused on delivery of new engine programs such as the (Trent 1000) for the 787, the (Trent XWB) for the A350 and the (BR725) for the Gulfstream G650 business jet.
Today, (RRC) still is pursuing the multi-strand approach to future technology with the three-shaft Advance3 suitable for a new large narrow body/wide body in the 2017 to 2018 time frame, the two-shaft Advance2 intended for regional and corporate airplanes and potentially a new 150-seat airplane in the 2016 time frame, and an open rotor design that would be available for (EIS) early next decade for the next-generation narrow body.
One thing it is not actively pursuing is a re-engine program for the 737 or A320. "We would never say never," Nuttall emphasized, but, "We've spent a lot of time analyzing, understanding the opportunities, and we've concluded this simple re-engining concept misses the target in terms of offering the industry any significant net financial benefit. At our level, because of the relatively short production life of a re-engined airplane, we feel it misses the target for us [also]."
He observed, "Technically, we have no issues with providing an engine, but when it comes to the business case we can't make the numbers add up. And I think more importantly, any re-engined airplane will inevitably delay the entry into service of an all-new-technology airplanes" that (RRC) believes the industry requires to meet its economic and environmental challenges.
This view separates (RRC) from its partner in International Aero Engines (IAE), Pratt & Whitney (P&W), which is pitching its (PW1000G) geared turbofan to both Airbus (EDS) and Boeing (TBC) as a re-engine candidate. A deeper divide between the two is that "our architectural preferences have diverged," as Nuttall diplomatically puts it. "It's no secret that we don't see the benefit of the (GTF)."
At this point, both companies all but acknowledge that (IAE) will not be the vehicle through which they bring a (V2500) successor to the market and that they will go their separate ways when the time comes. Notwithstanding this view, Nuttall is confident that Rolls (RRC) will not be locked out of the narrow body market going forward. "We believe there will be new airplane and we will be incredibly well-positioned when that opportunity arises."
August 2010: Boeing (TBC) says first 787 deliveries to launch customer All Nippon Airways (ANA) will now take place around February 2011, rather than by the end of this year as had been planned. Confirmation of the delay, issued late in the evening (Pacific time) on August 26, comes in the wake of an uncontained failure of the Rolls-Royce (RRC) (Trent 1000) engine during ground runs early in August at the (RRC)’s Derby facility in the UK. Although (RRC) acknowledged the failure concerned the intermediate pressure turbine (IPT), few other details about the incident or its knock-on effect on the program have been released. However, Boeing (TBC) says, “. . . the delivery date revision follows an assessment of the availability of an engine needed for the final phases of flight test this fall.” This is believed to refer to the first set of improved Package B engines, due to be fitted to the fourth test airplane (ZA004). The engines are due to be installed several months after the completion of the flight loads survey. The survey, which was itself delayed by instrumentation issues, is currently underway in Victorville, California.
Although the failed engine was described as a Package A configuration engine of the type that will equip the initial airplane due for delivery to (ANA), there is speculation the test run was concerned with aspects of the improved (IPT) that will feature in Package B. Rolls (RRC) so far is offering no further clarification, although (TBC) says that “while Boeing (TBC) works closely with Rolls-Royce (RRC) to expedite engine availability, flight testing across the test fleet continues as planned.”
News of some form of delay was not altogether unexpected even before the (Trent 1000) incident. (TBC) said in July that the cumulative impact of a series of issues, including supplier workmanship issues related to the Alenia-supplied horizontal stabilizer and instrumentation delays, could push first delivery of the 787 “a few weeks into 2011.” (TBC) officially says the delay in engine availability “has extended that estimate to mid-first quarter 2011,” and adds that the schedule revision “will not affect (TBC)’s financial guidance.”
Wall Street analysts are divided about the implications of the latest delay, the program’s sixth slip. Bank of America Merrill Lynch analyst Ronald J Epstein believes it will still manage to deliver 25 787s next year. “As long as first delivery occurs by the first quarter of 2011, investors should not be concerned,” he says. And Jefferies & Co analyst, Howard A Rubel has “little doubt” the 787 will meet customer requirements, adding that the new jet’s wing “appears to be substantially more efficient than expected.” But Morgan Stanley’s Heidi Wood, who has referred to the 787 as “the aerospace equivalent of the iPod,” remains skeptical. “The bulls are reporting that this is, once and truly, the final disappointment to the 787 saga,” she says. “This may be the case, but the track record suggests otherwise . . . We do not expect this is the last setback on the 787 program.”
November 2010: Singapore Airlines (SIA) has been forced to perform engine changes on three of its A380s as a result of ongoing investigations into the uncontained failure of a Rolls-Royce (RRC) (Trent 972) on a Qantas (QAN) A380 after a recent take-off from Singapore. Initially, (SIA) inspected all its 11 A380s, powered by (Trent 970) engines, and returned them to service with some flights delayed. It performed one engine change but said it was unrelated.
“Based on further analysis of inspection findings as the investigation into this recent incident is progressing, (SIA) will be carrying out precautionary engine changes on three A380s.” The spokesman added that “Rolls-Royce (RRC) has recommended further detailed inspections of three engines [one on each A380air) as a result of oil staining. This is to ensure that the cause of the oil staining can be determined.”
The three A380s were located at Melbourne, Sydney and in London and it was planned to ferry them back to Singapore for the work. (SIA) added that the rest of its fleet would continue normal operations. “Any further checks that may be recommended by the manufacturers will of course be done and, in the meantime, we continue with our regular routine checks,” the spokesman said.
The (QAN) fleet of six A380s remains grounded with no firm date of when the airplanes will be returned to service. (QAN) is expected to take delivery of three more A380s before Christmas.
(EASA) issued an Emergency Airworthiness Directive (AD) for all Rolls-Royce (RRC) (Trent 900) series engines calling for “repetitive inspections of the Low Pressure Turbine stage 1 blades and case drain, HP/IP structure air buffer cavity and oil service tubes in order to detect any abnormal oil leakage” in the wake of the uncontained failure of a (Trent 972) on a Qantas (QAN) A380 on November 4. The (AD) says that “analysis of the preliminary elements from the incident investigation shows that an oil fire in the HP/IP structure cavity may have caused the failure of the Intermediate Pressure Turbine Disc.” It adds that “this condition, if not detected, could ultimately result in uncontained engine failure potentially leading to damage to the aeroplane and hazards to persons or property on the ground.”
The (AD) requires that all engines are inspected within 10 flight cycles of the date of the (AD) and then every 20 flight cycles. Any engine off-wing must be inspected immediately. (EASA) says that if any discrepancy is found, it prohibits further engine operation.
Singapore Airlines (SIA) reported that it had already implemented the (AD) as it knew it was coming and had rearranged its A380 flight schedule to accommodate the extra time required for the checks. (SIA) still has three A380s grounded for engine changes. Qantas (QAN) is keeping its six A380s grounded until at least next week.
Rolls-Royce (RRC) has said the failure of the (Trent 972) and the test-stand failure of a (Trent 1000) on August 2 are unrelated and that the cause of the latter is understood. However, (QAN) engineers and a former Australian Transport Safety Bureau inspector have said that there may be a connection between the two events.
Rolls-Royce (RRC) has advised airlines that up to 34 (Trent 900) engines may have to be replaced, according to airline sources in Sydney, who noted that Singapore Airlines (SIA) may have to replace up to 20 engines in its fleet of 11 A380s, and (QAN) may have to replace 14 engines.
(QAN) said it is still working through the issue with Rolls-Royce (RRC), while a Singapore Airlines (SIA) spokesman said (SIA) is “working with (RRC) on an agreed program, which will cover the replacement of a module in our A380 engines.”
Airbus (EDS) COO Customers, John Leahy told Australian media in Sydney that new-build (RRC) engines had the required modification, understood to be a bearing box, but older engines did not. As of press time, the engine maker had not officially advised its airline customers of the upgrade or a fix for older engines. At the briefing, Leahy said that (RRC) is “constantly upgrading its engines” and that the new engines had a modification relating to the oil leak problem. “The engines on the production line are to a new-build standard and do not have the [oil] problem,” Leahy said.
(QAN) continues to ground its A380s; Airbus (EDS) had offered to fly some new engines out, but that was before the new revelation on the number of engines to be replaced.
Rolls-Royce (RRC), the global power systems company, has won an order worth $200 million at list prices from Tunisair (TUN) for (Trent 700) engines to power three A330 airplanes. The order, the first time (TUN) has selected (Trent) engines, also includes a TotalCare long-term service agreement.
Rolls-Royce (RRC) received a $350 million order from EgyptAir (EGP) to perform extended TotalCare long-term services for 12 A330s, Arabian Aerospace reported. (EGP) operates eight A330s, with four due to be delivered in 2010 and 2011.
Sir John Rose, CEO after 15 years at the helm of Rolls Royce (RRC) and 26 years with the company is to retire in March 2011. He will be replaced by John Rishton, ex-British Airways (BAB) Finance Chief.
Rolls-Royce (RRC) announced it received an order for (Trent 700) engines from China Eastern Airlines (CEA) to power its 16 A330 airplanes. The deal is worth $1.2 billion, it said. The A330s are scheduled to go into service from 2011. (RRC) and (CEA) also announced formation of a Carbon Partnership, which aims to reduce CO2 emissions by 190,000 tonnes in its first year and provide a fuel management service for the airline’s fleet of more than >300 airplanes. (CEA) Chairman, Liu Shaoyong said the airline anticipates the partnership will “reduce fuel consumption by at least -2% in its first year alone, the equivalent of a -190,000-tonne reduction in CO2, which equates to the amount of CO2 produced by 80,000 cars over the same period.”
December 2010: The Australia Transport Safety Bureau (ATSB) has issued a Safety Recommendation for all Rolls-Royce (RRC) (Trent 900) engines to be checked within two flight cycles for fatigue cracking within the stub pipe that feeds oil into the High Pressure and Intermediate Pressure bearing structure. The (ATSB)’s recommendation was quickly followed by an (AD) from Australia’s Civil Aviation Safety Authority (ACASA) to Qantas (QAN) and is expected to be followed by an (AD) from the European Aviation Safety Agency (EASA).
The ongoing investigation by the (ATSB), (EASA) and Rolls-Royce (RRC) into the uncontained failure of the No 2 (Trent 972) engine on a (QAN) A380 on November 4 has revealed the oil pipe had “misaligned counter-boring understood to be related to the manufacturing process,” according to the (ATSB). The (ATSB) said the “condition could lead to an elevated risk of fatigue crack initiation and growth, oil leakage and potential catastrophic engine failure from a resulting oil fire.” It added that the misalignment had “produced a localized thinning of the pipe wall on one side. The area of fatigue cracking was associated with the area of pipe wall thinning.”
(QAN) said the “revelation appeared to provide a more definitive explanation for the engine failure that occurred on QF32.” It added that the (ATSB)’s recommendation that "these one-off inspections be conducted within two flight cycles," provides a level of inspection "over and above the current 20 cycle inspection required by the (EASA).”
(QAN) has two A380 airplanes in operational service. It said that both airplanes would be checked immediately. At the same time, (QAN) has filed a statement of financial claim with the Federal Court of Australia against (RRC). (QAN) was granted an injunction by the court, which will ensure it can pursue legal action against the engine maker in Australia under the Trade Practices Act if a commercial settlement is not possible. That claim is expected to run well over >$100 million with the repairs to the A380 alone to top $70 million.
“Today’s action allows (QAN) to keep all options available to the company to recover losses, as a result of the grounding of the A380 fleet and the operational constraints currently imposed on A380 services,” said (QAN) in a statement.
The (ATSB) Chief Commissioner, Martin Dolan credited Qantas (QAN) pilots (FC) with saving the A380 that suffered an uncontained engine failure after take-off from Singapore on November 4. Addressing media in Canberra at the release of the (ATSB)'s interim report on the incident, Dolan said that "the airplane would not have arrived safely in Singapore without the focused and effective action of the flight crew (FC).''
The (ATSB) report also showed that the A380 lost 17 critical control systems and the five pilots (FC) on board, with a combined experience of 72,000 hours, took just under an hour to deal with 54 error messages after debris from the Rolls-Royce (RRC) (Trent 972) engine ripped through the wing. The crew (FC): — a captain, co-pilot and second officer — was bolstered by a check captain and training check captain on QF32.
VP Australian & International Pilots Association, Richard Woodward said the pilots (FC) were forced to deal with an "unprecedented" number of issues during the two-hour ordeal. Dolan said that, while it was impossible to say how close QF32 came to disaster, the consequences of this type of uncontained failure "were very serious." "The most serious damage in terms of scale was the result of one significant part of the turbine disc going directly through the wing of the airplane," Dolan said. While the 54 error messages were demanding, the landing was extremely difficult and passengers were briefed for an overrun.
The relationship between (QAN) and Rolls-Royce (RRC) hit more turbulence after the engine maker’s lawyers failed to show up at an Australian Federal Court hearing to discuss a compensation claim for the grounding of (QAN)’s A380 fleet for 23 days following last month’s uncontained engine failure incident.
In a related development, (QAN)’s seventh A380 (on the production line in Toulouse) required one (Trent 972) engine changed because it was a “Mod A” with the faulty stub pipe thought responsible for the November 4 incident. The airplane is due to be delivered. (QAN) confirmed that it refused to accept the latest A380, named "Charles Ulm" after the pioneer aviator, until the “Mod C” engine was fitted, which was completed Wednesday.
(QAN) filed a 25-page statement of claim in the federal court to negotiate a commercial settlement with (RRC) over loss of earnings— which could run more than >$100 million by some estimates — from the grounding of its A380 fleet. Repairs to the airplane alone could be $70 million. (RRC) countered and filed an application to suppress aspects of the claim, but the judge declined because no lawyers for the engine maker showed up in court. He set a new date of December 16.
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Last week, the (ATSB) issued a safety recommendation for all (RRC) (Trent 900) engines to be checked within two flight cycles for fatigue cracking within the stub pipe that feeds oil into the high pressure and intermediate pressure bearing structure. The (ATSB) said that the oil pipe had “misaligned counter-boring understood to be related to the manufacturing process,” and the “condition could lead to an elevated risk of fatigue crack initiation and growth, oil leakage and potential catastrophic engine failure from a resulting oil fire.”
(EDS) will miss its target of delivering at least 20 A380s this year owing to supplier problems. The main culprit is Rolls-Royce (RRC) and its (Trent 900). In the aftermath of the uncontained engine failure of one of the turbofans on Qantas (QAN) Flight QF32, (RRC) has been unable to get sufficient powerplants to (EDS) for final assembly as attention has focused on repairing in-service airplanes. The (QAN) A380 that was to be the 20th delivery, is now expected to be handed over in the first weeks of 2011. Singapore Airlines (SIA) also has deferred one delivery owing to a Koito seat supply Shortfall. In prior years, Airbus (EDS) also missed its original delivery goal, owing to its own production problems. For 2010, (EDS) was hoping to reach more than just 20 deliveries, and was on track to do so before supplier setbacks occurred. In a note to employees, (EDS) CEO, Tom Enders notes that by “implementing the operational improvement actions we decided a year ago, we have achieved huge progress on the A380 program this year. Outstanding work and lead-times in our [final assembly lines] have been reduced considerably, production costs have come down, and our ramp-up from two to three airplanes per month is well underway. Also, very important: the operational reliability of our fleet in service has markedly improved — and so has the satisfaction of our customers with their planes.” However, he acknowledges that “we still face significant challenges going forward” and that the (Trent 900) situation will have an impact on 2011. Just what the impact will be remains unclear. Also uncertain is whether China Southern (GUN), the next new A380 operator, will be affected. (GUN) has opted for (Trent 900)s. Airbus (EDS) officials hope to have more clarity by mid-January. Previously, company officials said they are hopeful the impact on 2011 will be limited somewhat by the fact that about half the planned deliveries are powered by Engine Alliance (GP7200)s.
Singapore Airlines (SIA) has also found one engine with a suspected faulty pipe. A spokesman said that (SIA) had one “precautionary engine change” as a result of the inspections. “The engine was removed for a more detailed inspection in the shop.”
January 2011: British Airways (BAB) is one of nine customers that have selected the (Trent 900) for the A380. The (Trent 1000) has been selected to power the first 787 to enter service with All Nippon Airlines (ANA) and has already powered over >2,000 hours of airplane test flights.
Rolls-Royce (RRC) has finalized a (Trent 900) and (Trent 1000) engine contract with British Airways (BAB) for up to 61 Airbus (EDS) and Boeing (TBC) airplane. Valued at more than >$5 billion, including options, the agreements include (RRC)’s TotalCare support program for (Trent 900)s on 12 A380s and (Trent 1000)s on 24 787s.
February 2011: Rolls-Royce (RRC) has won a $2.2 billion TotalCare® long term services contract from Emirates (EAD), covering Trent engines for 70 A350XWB airplanes. The agreement will bring (EAD)’s Rolls-Royce (RRC) powered fleet of 128 airplanes, in service and on order, under TotalCare® arrangements.
The new TotalCare® contract for (Trent XWB) engines comes two months after (RRC) won a $1.2 billion TotalCare® contract for (Trent 700) engines powering 27 A330s and (Trent 800) engines powering 21 777s.
March 2011: Rolls-Royce (RRC) said that Asiana Airlines (AAR) selected the (Trent 900) to power the six A380s (AAR) has on order for delivery from 2014 to 2017. The contract includes a TotalCare long-term service agreement.
(AAR)'s selection marks the first firm order for the engine type since the uncontained failure of a (Trent 900) on a (QAN) A380 on November 4.
(AAR) Senior VP Legal Affairs & Purchasing, Yong Wook Lee said, "The (Trent 900) will offer us economic benefits that will maximize the reliability of our A380s." Rolls (RRC) Senior VP Civil Aerospace, Jim Sheard added, "This confirms the (Trent 900) as the true market leader and engine of choice for the majority of A380 operators." (RRC) noted that (Trent 900) engines have been selected by 10 of 15 airlines that have ordered the A380.
(RRC) has won a $200 million order from Turkish Airlines (THY) for (Trent 700) engines to power three A330F freighter airplanes. The contract includes a TotalCare® long-term service agreement. The airplanes, which will be delivered between 2012 to 2014, are in addition to two (RRC) powered A330F freighters previously ordered, one of which is now in service. (THY) now has a total of 16 (RRC) powered A330 passenger and freighter airplanes in service or on order to support its growth strategy.
The (Trent 700) is the engine of choice in both passenger and freighter markets, with a near-90% share of the latter. Overall, the engine has captured more than >75% of orders for the A330 in the last three years.
Hamdi Topcu, Chairman, Turkish Airlines (THY), said: “Our first (Trent 700) powered A330s entered service last September and we have been pleased with both the environmental and efficiency benefits of the engine technology and the support offered through TotalCare®.”
April 2011: INCDT: Approximately 1,300 kg/2,866 lbs of fuel leaked from the left (RB211) engine of a Thomas Cook (JMA) 757 during a June 10, 2010 flight from Milas-Bodrum Airport in Turkey to London Gatwick (LGW), according to a UK Air Accidents Investigation Branch (AAIB) report just released. Rolls-Royce (RRC) is planning to revise a 2009 service bulletin on (RB211) engines as a result of the incident and subsequent investigation, the (AAIB) stated.
"Approximately 2 hours and 20 minutes into the flight and shortly after entering French airspace a 'fuel config' warning appeared on the (EICAS) display," the (AAIB) report said. "The 757 began to leak fuel from the left engine while it was cruising. The flight crew (FC) diagnosed the fuel leak and cross-fed fuel to the left wing to correct the imbalance but the fuel leak continued." The 757 was able to land normally at (LGW) and a "subsequent investigation by (JMA)'s maintenance engineers (MT) traced the source of the fuel leak to a pipe coupling at the HP fuel pump on the left engine."
Examination immediately after landing revealed "that the left engine and cowling interior were saturated with fuel," according to the report. A mechanic (MT) "traced the fuel leak to the seal ring between the HP fuel pump and the fuel flow governor to [the] HP fuel pump overspill return tube. He therefore replaced this seal ring on both engines in accordance with the Airplane Maintenance Manual."
Analysis by (RRC) "indicates acceptable reliability when tubes are replaced during planned on-wing maintenance," the (AAIB) stated. "Hence, a revision to the service bulletin is planned to recommend on-wing replacement during planned maintenance and during unplanned overhaul shop visits." The modification "will be fully implemented into the fleet by the end of 2013," the (AAIB) said.
May 2011: Rolls-Royce (RRC) announced that the (Trent 1000) for the 787 received 330-minutes, Extended Twin-engine OPerationS (ETOPS) approval from the USA (FAA). "(ETOPS) approval marks a major milestone for the (Trent 1000) program," Program Director, Simon Carlisle said, adding, "We now look forward to supporting Boeing (TBC)'s own (ETOPS) program." The (Trent 1000) recently passed 2,800 hours of flight testing.
June 2011: Airbus (EDS) said it finalized an agreement with Singapore Airlines (SIA) under which (SIA) will lease 15 new A330-300s to be delivered by (EDS) from 2013 - 2015 to join an existing fleet of 19 A330-300s currently operated by (SIA). The A330-300s will be powered by Rolls-Royce (RRC) (Trent 700) engines.
Rolls-Royce (RRC) agreed to pay Qantas Airways (QAN) A$95 million/$100 million in full settlement for last November's uncontained failure of a (Trent 900) engine on a (QAN) A380.
Rolls-Royce (RRC) is investing in the development of a significantly modified version of the (Trent XWB) for the A350-1000 to help Airbus (EDS) enhance the performance of its largest twinjet.
(RRC), the sole engine supplier on the A350 program, is expected to confirm that it is broadening the changes it plans for the most powerful (Trent XWB) variant at the Paris air show. This is when Airbus (EDS) will unveil details of a revamped A350-1000 with increased weights and longer range.
Neither (EDS) nor (RRC) are talking about the developments, but sources familiar with the situation indicate that a 5,000 lb thrust/22kN increase to the 350-seat A350-1000's 93,000 lb (Trent XWB) - made possible by changes to the core - will allow Airbus (EDS) to increase the design weights and extend the range by 500nm/925km, and enlarge the wing.
"Rolls (RRC) has accepted that it must increase the engine thrust," said Akbar Al Baker, CEO of A350-1000 launch customer, Qatar Airways (QTA). "We'd like increased take-off weight and increased range."
September 2011: Singapore Airlines (SIA) has firmed up an agreement with Airbus (EDS) to lease another 15 A330-300 airplanes. No other financial details were disclosed. The airplanes will be delivered between 2013 and 2015 and will be operated on routes within Asia, as well as to points in Australia and the Middle East. The A330s will be powered by Rolls-Royce (RRC) (Trent 700) engines and will join 19 already in service.
Rolls-Royce (RRC) has signed a letter of intent (LOI) with Skymark Airlines (SKM) to provide (Trent 900) engines to power six A380 airplanes, including TotalCare® long-term engine service and support. The airplanes will enter into service in 2014.
Skymark (SKM) is a new customer for Rolls-Royce (RRC), and (SKM) is the first in Japan to order the A380. (Trent 900) engines powered the very first A380 to enter service in 2007 and have now been selected by 11 of 16 airlines who have ordered the airplane.
Rolls-Royce (RRC) has won a contract from leisure travel company TUI Travel PLC (TUG) to provide (Trent 700) engines to power two A330 airplanes which will also be covered by TotalCare® long-term support services. The airplanes will be operated by TUI (TUG)’s subsidiary, Corsairfly (COR) and the contract also includes TotalCare® services for two additional A330s already in service with the airline.
November 2011: Rolls-Royce (RRC) has won a $280 million order from Garuda Indonesia (GIA) for (Trent 700) engines to power four A330s. In addition, (GIA) confirmed a previous order for (Trent 700) engines to power six A330s, which was announced last year. All 10 airplanes will have long-term TotalCare service support.
Rolls-Royce (RRC) announced at the Dubai Airshow it has won a $500 million contract for (Trent 700) engines from Saudi Arabian Airlines (SVA). Under terms, (RRC) will provide engines and "TotalCare" support for four previously announced A330s and four options. The airplanes, due to enter service in 2013, will join (SVA)’s existing fleet of eight (Trent 700)-powered A330s.
“The (Trent 700) is a market leader and in the Middle East it is the engine of choice for eight out of the 11 operators of the A330, powering three quarters of the airplanes in service,” (RRC) Senior VP Civil Aerospace, Phil Harris said.
(SVA) put its first (Trent 700)-powered A330 into service in May 2010 and the airplane has since “performed flawlessly,” (SVA) Director General, Khaled Al-Molhem said.
December 2011: Rolls-Royce (RRC) has won a $350 million contract from Hawaiian Airlines (HWI) to deliver (Trent 700) engines to power five A330 airplanes. The airplanes, to be delivered from 2013 to 2015, will add to (HWI)’s current fleet of five (Trent 700)-powered A330s and another 12 to be delivered.
In addition to the current fleet of A330s, (HWI) also operates 15 717s, powered by the Rolls-Royce (RRC) (BR715) and has six A350 airplanes on order, which will be powered by (RRC) (Trent XWB-74) engines.
January 2012: SEE ATTACHED - - "RRC-VISIT RAF MEMORIAL."
February 2012: Rolls-Royce (RRC) has won an order from Air Pacific (APC) for (Trent 700) engines to power its three new A330 airplanes. The deal is worth $210 million at list prices, (RRC) said. The contract includes long-term TotalCare service support.
“The A330s will be our first new wide body airplanes, so the (Trent 700) engines represent an exciting and significant investment in leading-edge operational technology and support service for the future of our business. These engines will provide high-quality environmental performance, with low emissions, noise and fuel burn—something our company and customers value,” (APC) Managing Director & (CEO), Dave Pflieger said at the order signing at the Singapore Airshow.
A Rolls-Royce (RRC) (Trent XWB) engine, the powerplant for the new Airbus A350, made its first flight on an A380 test airplane in Toulouse, France. The airplane flew with one of its four (Trent 900) engines replaced by the (Trent XWB).
March 2012: Rolls-Royce (RRC) has commemorated the start of construction for a new London Heathrow Service Center. The new facility will provide specialist maintenance and support services for commercial aero engines.
Russell Buxton, Rolls-Royce, President Civil Large Engines Fleet said: “The London Heathrow Service Center will form an integral part our global network of service centers, and will enable us to deliver truly world class support for our customers. Rolls-Royce (RRC) continuously invests in technology and infrastructure to expand the scale and efficiency of our operations to enhance the services we deliver to our growing customer base.”
When fully operational, the new facility will employ up to 80 people, with 40 transferring from the existing (RRC) Heathrow facility, which it will replace. They will service cutting edge (Trent) aero engines providing round-the-clock support to customers.
The facility will include two new buildings, including a state of the art engine workshop, which will total nearly 95,000 square feet. This is four times larger than the existing facility, enabling teams to work on up to 13 aero engines at any one time, double what was previously possible.
The new service center is expected to commence operations in early 2013.
Rolls-Royce (RRC) (Trent 1000) engines powering the 787 Dreamliners operated by All Nippon Airways (ANA) have now completed 4,000 flying hours in just five months of revenue service with a record 99.9% despatch reliability. This means less than one in 1000 flights has experienced a delayed departure due to an engine issue.
“These are the best ever reliability figures for a (RRC) Trent family engine on entering airline service,” said Peter Price, (RRC) Director Engineering & Technology – Civil Aerospace. “This achievement underlines the maturity we sought to build into the (Trent 1000)’s operational performance right from the start of the program and which was proven in the testing and certification program we completed last year.”
The (Trent 1000) powered the 787 Dreamliner’s first flight in December 2009 and entered service with (ANA) on October 26, 2011.
April 2012: Repairs have been completed on a Qantas Airways (QAN) A380 that experienced an uncontained engine failure over Singapore in November 2010. The A380 (VH-OQA) will be flown back to Australia from Singapore on 21 April.
This comes after 18 months of extensive repairs on the airplane, which suffered significant damage to its airframe. The incident occurred minutes after take off on flight QF32 from Singapore to Sydney on the morning of 4 November while the airplane was flying over the Indonesian island of Batam. The A380 rolled off the Airbus (EDS) assembly plant in September 2008 and entered into service that same month.
Australian investigators have finished collecting data for an investigation into the uncontained failure of the Rolls-Royce (RRC) (Trent 900) engine. The data is being analysed and a final investigation report is expected in the third quarter of 2012. So far, the investigations identified a defect in an oil feed tube as the cause behind an oil fire, which led to the engine failure. The defect caused a section of the oil tube to thin out and crack, leading to an internal engine oil fire that weakened the intermediate pressure turbine disc. This was then separated from the turbine shaft, puncturing the engine case and wing structure.
In January, the Australian Transport Safety Bureau (ATSB) said that both Rolls-Royce (RRC) and Airbus (EDS) had taken several measures to improve their processes. (RRC) conducted several "major internal investigations" looking into the manufacture of oil pipes with reduced wall thickness, the management of concessions of manufactured components, and the failure mode, effects and criticality analysis (FMECA) of previous component failures. In its (FMECA) procedures, Rolls-Royce (RRC) has revised it to include numerical justifications for any assumptions made. (RRC) also revised its procedures to include feature checks and risk assessment during the design and manufacture of new structures, and introduced a revised procedure to provide training to better manage the application of retrospective manufacturing concessions.
Airbus (EDS) is working with airports and firefighting agencies to develop an agreed safe method for these agencies to externally shut down the manufacturer's engines when the need arises. The agreed procedure will then be incorporated into (EDS)'s rescue and firefighting chart and distributed to those involved.
In its report, the (ATSB) said that together with the UK's Air Accidents Investigation Branch and (RRC), it is still looking into "the circumstances and missed opportunities with the potential to have detected the reduced wall thickness and offset counter bore of the oil feed pipe" before, during and after the manufacturing of the (IP) turbine module case.
The (ATSB) added that checks on the airframe and systems damage has been completed and did not reveal any significant or critical safety issues.
May 2012: Rolls Royce (RRC) has successfully completed the first run of an upgraded version of the (Trent 1000) that will be the launch engine for the latest member of the 787 Dreamliner family, the 787-9.
The (Trent 1000) Package C program will provide 74,000lb thrust for the 787-9 Dreamliner airplane, which is due to enter service with Air New Zealand (ANZ) in 2014. (Trent 1000) Package C engines will also begin powering 787-8 airplanes that enter service later in 2014.
Goodrich (BFG) signed an agreement with Rolls-Royce (RRC) to provide Boeing 787 nacelle maintenance services for British Airways (BAB) under (RRC)'s Total Care support program. The contract will begin following delivery of (BAB)'s first 787, slated for 2013.
June 2012: Rolls-Royce (RRC) will acquire the remaining 50% of shares in its UK-based joint venture (JV) with Goodrich (BFG), Aero Engine Controls (AEC). The (JV) was launched in January 2009, combining the engine controls businesses of the two companies.
(AEC) employs approximately 1,400, with sites in the UK cities of Birmingham, Derby, and Belfast, as well as the USA city of Indianapolis. The company designs and manufactures engine control systems including electronic engine controllers, fuel pumps and fuel metering units for (RRC) engines and other programs.
(RRC)’s acquisition will proceed once United Technologies Corporation completes its acquisition of Goodrich (BFG).
Pratt & Whitney (PRW) and Russia’s Irkut Corporation (IKT) signed an agreement to offer the PurePower (PW1400G) engine on Irkut (IKT)’s MC-21 family of airplanes. It will be the only western powerplant offered on the new narrow body program. (IRK) is developing the MC-21 as a family of 150- to 210-passenger airplanes with first flight of the (PW1400G) engined airplane planned for 2015 and entry into service (EIS) in 2017. The MC-21 series will feature jetliners with 25,000 - 32,000 lbs of thrust.
In addition, the two companies selected Short Brothers plc, a subsidiary of Bombardier Aerospace (BMB) of Canada, as the exclusive nacelle provider for the (PW1400G) engine family.
Pratt & Whitney (PRW) has closed on its $1.5 billion buyout of Rolls-Royce (RRC)’s shares in the International Aero Engines (IAE) joint venture (JV) that produces (V2500) engines for Airbus (EDS) A320s.
The change in (IAE)’s makeup was announced last year. Japanese Aero Engines and (MTU) Aero Engines will remain part of the (JV), and Rolls (RRC) will continue as a key supplier, but Pratt (PRW)’s buyout will give it the predominance of control over (IAE) by mid-2013.
The United Technology Corporation company said it would provide more details on the deal’s closing at the Farnborough Airshow in July.
Pratt (PRW) and Rolls (RRC) reiterated they will form a new collaboration to develop engines for future mid-size airplanes. The companies noted the new venture is subject to separate regulatory approvals from Pratt (PRW)’s buyout of (IAE) shares. Japan Aero Engines and (MTU) will also be a part of the new collaborative effort.
Pratt (PRW) President, David Hess explained the significance of buying out the engine manufacturer’s main (IAE) partner: “It really does three things for us. One, there’s certainly earnings growth. We now have delivered 5,000 (V2500)s with probably another 3,000 to go before Airbus (EDS) completes production of the classic A320. So this will give us growth throughout the decade and beyond with a lucrative aftermarket stream. [Second], this will enable us to leverage the existing (V2500)-installed marketplace to create value for customers and help us market the [(PW1000) geared turbofan engine for the Airbus A320neo] better. And finally, it really extends our reach to (IAE) customers that Rolls (RRC) serves but Pratt (PRW) doesn’t serve today. It extends our reach to another 100 engine operators that we don’t serve today.”
July 2012: Rolls-Royce (RRC) has announced an underlying pre-tax profit of +£637 million/+$987 million for the half-year ended June 30, up +7% compared to the same period in 2011.
Revenue for the period was up +5% year-on-year at £5.8 billion, with (RRC)’s order book +4% ahead at £60.1 billion.
The company’s balance sheet showed a pre-tax profit for the period of slightly more than >+£1.30 billion. This included £700 million received for the sale of (RRC)’s 32.5% stake in International Aero Engines (IAE) to Pratt & Whitney (PRW).
However, (CEO), John Rishton said (RRC) had “delivered solid growth in underlying revenue and underlying profit in the first half of the year.
Outlook for the full year’s figures was continued underlying growth in income, he added.
Despite the sale of its shareholding in (IAE), the company said it remained an essential supplier to (IAE) and would benefit from a revenue stream from the current installed fleet of (V2500)-powered airplanes over the next 15 years. It would remain committed to the mid-size airplane market and continue to be responsible for the manufacture of high-pressure compressors, fan blades and discs, plus provision of engineering support and final assembly of 50% of (V2500) engines.
“Our long and successful partnership with Pratt & Whitney (PRW) will continue through a new venture to be established, subject to regulatory approval, to develop engines for the next generation of mid-size airplanes. The other (IAE) partners, Japanese Aero Engines Corporation (JAEC) and (MTU) Aero Engines GmbH (MTU), have also agreed to join this new venture.”
The company said it was continuing to grow its wide body market share, with (Trent) engines making up around 70% of its order book of almost 3,300 engines.
Rolls-Royce (RRC) confirmed that a component on (Trent 1000)-powered 787s “is being replaced in a number of engines,” affecting some All Nippon Airways (ANA) 787 Dreamliners in service. (ANA) said it has grounded five of its 11 787s for repairs associated with a component in the (Trent 1000)’s gearbox, though it noted two of the airplanes are already repaired and back in service.
In an emailed statement, a Rolls (RRC) spokesperson said, “As part of our rigorous approach to product safety and quality, we have identified that a component on (Trent 1000) engines fitted to 787 Dreamliners has a reduced service life. As a proactive measure, this component is being replaced in a number of engines. We are working hard to minimize disruption to customer operations.”
A Boeing spokesperson said corrosion was spotted in the gearbox component during Rolls (RRC) ground testing, adding that the finding affects only five (ANA) 787s. No other airline is operating (Trent 1000)-powered 787s at this time.
All repairs to (ANA) airplanes “are expected to be completed in coming days,” the Boeing (TBC) spokesperson said. Regarding future 787 deliveries, he said, “We will not be delivering any airplane with affected parts. We don’t expect delivery times to be affected.”
The European Commission (EC) has approved United Technologies Corporation (UTC)'s proposed acquisition of Goodrich (BFG), but only if it sells some units, European Union (EU) antitrust regulators said.
The regulatory clearances require that (UTC) sell Goodrich (BFG)'s Electric Power Systems business and (BFG)'s Connecticut-based Pumps and Engine Controls business. (UTC) will also sell (BFG)'s interest in Aero Engine Controls (AEC), a joint venture with Rolls-Royce (RRC). It should also offer (RRC) an option to take over a technology research project to reduce fuel consumption in engines, which Goodrich (BFG) was developing on its behalf, the (EC) ruled.
The (AEC) aftermarket business, which was also a point of the (EC)’s in-depth investigation, will remain with (UTC), but (RRC) will be able to purchase this aftermarket business in the future.
Such remedies "ensure that competition and incentives to innovate remain strong in these high-technology markets," said the (EC), which opened an antitrust investigation on the proposed $16 billion deal in late March.
The (EC) concluded the merger would continue to face competition from a number of strong competitors and customers would still have sufficient alternative suppliers.
(RRC) unveiled the 76,000 lb thrust (Trent 1000-TEN) for the 787 for service entry in 2016 to provide -3% savings in specific fuel consumption vs the (Trent 1000); it is using technology from the (Trent XWB) being developed for the A350 plus other propulsion programs. TEN stands for Thrust, Efficiency and New technology.
(RRC) finalized an AviancaTaca (AVI)/(TAC) order for (Trent 700)s for 4 A330-200Fs in a deal that includes TotalCare support.
(RRC) booked an order from Garuda Indonesia (GIA) to supply (Trent 700) for 11 A330s in a deal that includes TotalCare support.
October 2012: Airbus (EDS) has installed four Rolls-Royce (RRC) (Trent 970-84) engines on the first A380 to be delivered to British Airways (BAB). The engines, installed at its Toulouse facility, each produce 70,000 lbs of thrust. The A380 is scheduled for delivery in July 2013. Others will follow in September and November 2013.
(BAB) has 12 A380s on order plus seven options. The A380, which will replace (BAB)’s older Boeing (TBC) 747s, is widely expected to be used initially on high-density Far East routes (such as Singapore and Hong Kong) and possibly to New York (JFK).
Rolls-Royce (RRC) has won a $2.6 billion order, at list prices, from Singapore Airlines (SIA) for (Trent) engines to power the order announced this month for 20 A350-900s and five A380s. The deal includes (RRC)’s long-term TotalCare service support.
(RRC) Chief Commercial Officer (CCO) Civil Aerospace Nick Devall said, “This order further demonstrates (SIA)’s commitment to both (Trent XWB) and (Trent 900) technology and our comprehensive TotalCare support services.”
The (Trent 900) powers the A380 and has been selected by 11 of 17 airlines who operate the airplane. The (Trent XWB), which flew on a test bed airplane for the first time last February, will power the A350.
(SIA) is a significant customer for (RRC), operating 19 A380s powered by (Trent 900)s and 19 A330s powered by (Trent 700)s.
November 2012: Rolls-Royce (RRC) will begin construction on a 90,000 sq ft advanced airfoil machining facility in Prince George County, Georgia, USA to produce turbine blades and nozzle guide vanes for its engines. Construction is slated for completion by the end of 2013 and it anticipates component production to begin in late 2014.
Rolls-Royce (RRC) has delivered the first (Trent 900) aero engine produced in Singapore to an undisclosed customer in the region.
The 154,000 sq m Rolls-Royce (RRC) Seletar Campus, which was opened in February, is the largest aerospace facility in Singapore. It includes a (Trent) aero engine assembly and test unit designed to allow simultaneous assembly and testing, a wide chord fan blade (WCFB) manufacturing facility, the group’s first outside the UK to manufacture hollow titanium (WCFB)s, an advanced technology center, and a regional training center.
Initially, (Trent 900) and (Trent 1000) aero engines will be built at the facility. At full capacity, it will be able to produce 250 engines and more than >6,000 blades a year.
Rolls-Royce (RRC) Seletar Campus Director, Paul O’Neil said: “The delivery of the first (Trent) aero engine produced in Singapore is a significant milestone for us. It represents a huge collaborative effort with colleagues in the UK supporting our team here to ensure that the engine, produced to our exacting standards, was delivered on time.”
January 2013: Engine manufacturers will be busy in 2013 as testing accelerates on the latest commercial turbofans and work advances on the next generation of military powerplants. Production will rise, but more significantly on the commercial side than the military.
The pace is highest at (CFM) and Pratt & Whitney (PRW) as they battle for the single-aisle airliner market with the (Leap-1) and (PW1000G), respectively. While the 2011 and 2012 order levels are unlikely to be sustained in 2013, it will see vital tests for both engines.
Even though they compete head-to-head only on the A320NEO, each powers airliner families competing in the narrow body market, ranging from the 737 MAX and Comac (CCC) C919 (both using the Leap) to the Irkut MS-21 (PW1400G) and Bombardier (BMB) CSeries (PW1500G). Overall, General Electric (GE)/Safran joint company (CFM) has logged orders and commitments for more than >4,350 engines across the three models, 1,192 of them (Leap-1A)s for the NEO. Pratt (PRW) has orders and commitments for almost 3,000 engines, of which close to 1,140 are for the new Airbus twin.
Pratt (PRW) began ground tests of the (PW1100G) for the NEO in November 2012 and aims to bolster its market position through its new role as the leading shareholder in International Aero Engines (IAE), maker of the (V2500) engine powering today’s A320 family. Under an arrangement finalized in mid-2012, Pratt (PRW) acquired Rolls-Royce (RRC)’s 32.5% stake in (IAE), while (MTU) Aero Engines’ share grew to 16% and Japanese Aero Engines retained its 23%. Pratt (PRW) and Rolls (RRC), meanwhile, have longer-term plans to form a joint company to develop new engines for the next generation of mid-size airplanes.
The first of the geared turbofans to enter service, the CSeries will use the (PW1500G) on its first flight in mid-2013 and service entry in mid-2014. The (PW1200G) will power the first Mitsubishi Regional Jet in late 2013, while the first (PW1100G) for the NEO will be certified in the third quarter of 2014, to enter service in October 2015.
(CFM)’s (Leap-1) is expected begin ground runs by the end of September 2013. Although the (Leap-1A and -1C) run parallel for much of the time because of their commonality, the first to fly on (GEC)’s Boeing 747 testbed will be the (Leap-1C) engine for the C919, in April 2014. Engine certification is expected in March 2015, and service entry in the second quarter of 2016. The NEO engine is scheduled to fly in September 2014. First flight on the A320NEO is due around the third quarter of 2015, with entry into service (EIS) the following year.
Developments in large commercial turbofans for 2013 will focus on: Rolls-Royce (RRC)’s (Trent XWB), when it powers the first Airbus A350-900 flight around mid-year; progress on upgrading (GEC) and Rolls (RRC) engines for the 787; and production ramp-up to support increased wide body assembly rates at Airbus (EDS) and Boeing (TBC). The greatest uncertainty in the big-fan business, which may be resolved by year-end, is whether Boeing (TBC) will offer its proposed 777X derivative with a choice of engines.
(GEC) is increasing production of the (GE90-115B) to 200 engines a year to support Boeing’s 777 build rate, and it expects to run the first version of a new core for its proposed 777X engine, the (GE9X), as early as 2014. The final design freeze is likely around 2015, with the first engine going into testing in the 2016 time frame. Rolls (RRC) is offering the (RB3025), targeting a fuel burn more than >-10% lower than the (GE90-115B). This would be the first large Rolls (RRC) engine to incorporate composite fan blades and casing. Ground tests of scaled blades are set for 2013 on a (Trent 1000).
As well as developing upgrades for the (Trent 500, 700, 800 and 900) engines, Rolls (RRC) is preparing to test the "Package C" enhancements to the (Trent 1000), the lead engine for the stretched 787-9. Certification is planned for mid-2013, when flight tests will also start on the 787-8, followed by trials on the 787-9. Deliveries of "Package C"-powered 787-9s will begin early in 2014, with 787-8 deliveries commencing in mid-2014. Rolls (RRC) is also preparing for (Trent XWB) production rates of one engine a day eventually. The powerplant, the biggest Rolls (RRC) has produced, cleared its final certification hurdles at the end of 2012.
(GEC) and Boeing (TBC) are starting flight tests of the (GEnx-1B PIP II) upgrade which, from the third quarter of 2013, will be the production standard for the 787 line. Flight tests of the (GEnx-2B PIP) for the 747-8 are to begin on (GEC)’s testbed in early 2013. Production of (GEnx) engines is ramping up, with 200 due for delivery in 2013 and 300 in 2014.
With the supply chain expanding to support commercial-engine production increases, attention will focus in 2013 on changes in second- and third-tier manufacturers. In 2012, (GKN) Aerospace acquired Volvo Aero in a $1.05 billion deal that makes (GKN) the No 3 supplier of engine components, after Avio and (MTU). But this balance may shift again now that (GEC) has acquired Avio.
February 2013: Rolls-Royce Holdings (RRC) reported an underlying post-tax profit of £1.1 billion/$1.7 billion for 2012, up +24% on the previous year’s figure of £896 million, on underlying revenues of £12.2 billion, a rise of +8%.
(RRC) comprises four main divisions (Civil & Defense Aerospace, Marine & Energy, of which Civil Aerospace is the largest.
Civil Aerospace reported underlying revenues of £6.4 billion, up from £5.5 billion for the year-ago period. The division delivered 668 power plants, up from 554 for the preceding year. “In the full year, underlying profits increased for the tenth consecutive year,” (CEO), John Rishton said. “The strength of our order book demonstrates the confidence our customers have in our products and services.” The company as a whole reported its order book had grown +4%, to £60.1 billion.
Order book for the Civil Aerospace division was up +5%, at £49.6 billion and the division anticipated “modest growth in revenue and strong growth in profit” in 2013.
Chairman, Simon Robertson will retire at this year’s annual general meeting May 2 after eight years in the post. He will be replaced by Ian Davis, who has spent more than 30 years with McKinsey & Company, including six as Chairman and worldwide Managing Director.
The Airbus A350 XWB program has achieved yet another important milestone with the European Aviation Safety Agency’s (EASA) award of the Engine Type Certification of the Rolls-Royce (RRC) (Trent XWB) turbofan. (EASA) presented the certificate to (RRC) at (EASA)’s headquarters in Cologne, Germany.
This certification covers (Trent XWB) engines which will power the A350-800 and A350-900 variants. A higher thrust version of the (Trent XWB) is currently under development for the A350-1000.
Eric Schulz, President Civil Large Engines, (RRC), said: “We are very proud to have achieved this significant milestone on the road to the A350 XWB’s entry into service. I would like to thank Airbus (EDS) for their support and all of our partners and employees who contributed to the design and certification of the engine. Test results show we have produced the world’s most efficient large civil aero engine and we now look forward to the first flight later this year.”
Didier Evrard, Airbus (EDS)’s Executive VP Head of A350 XWB Program said: “We congratulate our colleagues at (RRC) on achieving this important milestone for the A350 XWB program with the (EASA) certification of the (Trent XWB) engine.” He adds: “These new engines together with the airplane’s advanced aerodynamics and airframe technologies will bring our airline customers a 25% step-improvement in fuel efficiency.”
Certification confirms the engine has fulfilled (EASA)’s airworthiness requirements for flight and is the last major engine milestone prior to the first flight of A350-900 (MSN001) later this year. The engines which will power that airplane are now being prepared prior to installation of the fully integrated powerplant on the airplane’s pylon.
The (Trent XWB) has already powered a series of test flights on Airbus (EDS)’s A380 Flying Test Bed (FTB) airplane since February 2012. These flight-test results indicate that the engine will meet (EDS)’s extremely high efficiency and performance goals for the A350 XWB program.
The A350 XWB is the all-new mid-size long range product line comprising three versions and seating between 270 and 350 passengers in typical three-class layouts. The new family will bring a step change in efficiency compared with existing airplanes in this size category, using -25% less fuel and providing an equivalent reduction in CO2 emissions. Scheduled for entry-into-service (EIS) in 2014, the A350 XWB has already won 617 firm orders from 35 customers worldwide.
(RRC) has won an order worth $1.1 billion, at list prices, from Air Lease Corporation (ALE) for (Trent XWB) engines to power its 25 A350XWB airplanes on order. Twenty of the A350 XWB airplanes will be the -900 variant and five will be the -1000 variant, which is powered by a higher-thrust version of the (Trent XWB). (ALE) also has options for an additional five A350-1000 airplanes.
March 2013: Rolls-Royce (RRC) has opened a new £50 million/$72 million London Heathrow Service Center to provide round-the-clock maintenance and support for its powerplants.
The 95,000 sq ft facility includes a state-of-the-art engine workshop four times larger than the previous Rolls-Royce (RRC) Service Center at Hatton Cross, Heathrow.
The new center will be capable of handling operations on up to 13 of (RRC)’s (Trent) engines at any one time, double the capacity of the previous facility.
In addition, the center will be capable of storing up to 30 large gas turbines, available for supply to operators worldwide.
More than >90% of (Trent) engine orders include TotalCare services support that maximizes engine availability. Services accounted for more than 50% of Rolls-Royce (RRC) civil aerospace revenue in 2012.
May 2013: Rolls-Royce (RRC) has appointed Tony Wood to be the next President of its Aerospace division, replacing Mark King, who has resigned after four months in the role. King, who was appointed (RRC) Aerospace President in January 2013, “has decided to resign from the company at the end of June.” He has been with (RRC) since 1986, with former roles including Civil Aerospace President & (CEO) of International Aero Engines. A (RRC) spokeswoman said King is leaving for “personal reasons.”
Wood will take up his new role May 13. He is currently President of (RRC)’s Marine division and has worked for (RRC) for 12 years, with experience in the company’s civil and defense businesses.
Rolls-Royce (RRC) has won an order from USA leasing company CIT Aerospace (TCI) for (Trent XWB) engines to power 10 A350 XWB airplanes, and (Trent 700) engines to power 13 A330 airplanes. The Trent XWB engines are for the 10 A350s (CIT) ordered in January, which were in addition to five A350 XWB airplanes already on order. Specifically designed for the A350, more than >1,200 (Trent XWB)s have already been sold.
June 2013: Rolls-Royce (RRC)’s (Trent XWB) engines ran for the first time on the Airbus A350 (EDS) XWB (MSN1) as part of preparations for the airplane’s maiden flight. The airplane, (MSN1), was rolled out from (EDS)’ paint shop in Toulouse, in May.
Combined with the A350 XWB’s lightweight structure and advanced aerodynamics, the (RRC) engines will help cut fuel burn by -25% compared to previous generation competing long-range twins.
Scheduled for entry-into-service (EIS) in the second half of 2014, the A350 XWB has logged 616 firm orders from 34 customers.
Airbus (EDS) has scheduled the first flight of its A350 XWB airplane for Friday, June 14th from Toulouse-Blagnac airport. Flight test teams are currently performing their last pre-flight tests, following the first power up of the A350 XWB's Rolls-Royce (RRC) (Trent XWB) engines.
The A350 XWB family will have three variants, with seating between 270 and 350 passengers. Entry into service (EIS) is scheduled for the second half of 2014 with launch customer Qatar Airways (QTA).
Singapore Airlines Ltd (SIA) selected Rolls-Royce Holdings Plc (RRC) engines to power the 30 787-10X jets it ordered as the first buyer of the new 787 Dreamliner model and for planes at discount subsidiary Scoot (SCT).
(SIA) chose the (Trent 1000) engines over a General Electric Corporation engine available for the airplane. The order is conditional upon Boeing (TBC) formally launching the 787-10X.
Singapore Air (SIA) agreed to order 30 787-10Xs and 30 more A350-900s, also powered by (RRC), as the region’s economic growth spurs travel demand. (CEO), Goh Choon Phong is adding more planes and has upgraded business-class (C) cabins as he faces increasing competition from Emirates (EAD) and other airlines expanding in Southeast Asia.
Rolls-Royce (RRC) will provide (Trent 1000)s also to power the 20 787s (SIA)’s Scoot (SCT) unit will operate from next year.
(SIA) signed a letter of intent (LOI) with (RRC) for a service package for both deals. Under the agreement, (RRC) will be responsible for the provision of maintenance, repair and overhaul (MRO) services for the engines, as well as for spare engine support.
(SIA) shares fell 1.05% to S$10.35 in the city before the announcement. The stock has dropped -3.7% this year.
The agreement with Boeing (TBC) comprises 30 firm-ordered 787-10Xs for delivery from the 2018 - 2019 financial year. The deal with Airbus (EDS) comprises 30 firm-ordered A350-900s, on top of 40 placed previously, for delivery from the 2016 - 2017 financial year, plus options for 20 more. The options may be converted into firm orders for larger A350-1000s on which (RRC) is the exclusive engine provider.
Rolls (RRC) also provides the engines for Singapore Air’s A380 superjumbos and last year opened a turbine assembly facility in the city-state.
(RRC) has a Transaero (TRX) order to provide (Trent 1000)s for four 787s in deal that includes TotalCare support.
Rolls-Royce (RRC) has won an order worth $1 billion, at list prices, from Scandinavian Airlines System (SAS) for (Trent XWB) and (Trent 700) engines and long term TotalCare® services. The (Trent XWB)s will power eight Airbus A350-900 airplanes and the (Trent 700)s will power four (A330-300)s.
The (Trent XWB), specifically designed for the A350 XWB, is the fastest selling Trent engine ever, with more than >1,400 already on order. It powered the first test flight of the A350 XWB at Toulouse on June 14th this year. The (Trent 700) is the market leader on the A330 with more than >1,500 sold or on order.
July 2013: (EADS) Innovation Works and Rolls-Royce (RRC) are studying a new type of propulsion system (Distributed Electrical Aerospace Propulsion (DEAP)) to cut noise and CO2 emission levels, as well as dramatically reduce fuel.
September 2013: Pratt & Whitney (PRW) and Rolls-Royce (RRC) have mutually agreed not to proceed with plans to form a joint venture (JV), the two companies said. Originally announced in October 2011, the two engine makers intended to form a (JV) with the goal of developing an engine to power next generation mid-size airplanes within the 120 - 230 passenger capacity segment. Both companies said they scrapped the (JV) plans because of the "current regulatory environment."
"Following further discussion and because of the current regulatory environment, the parties have agreed not to proceed with the partnership," Pratt & Whitney (PRW) said.
Both companies said they will continue to independently pursue opportunities for new engines within the mid-size passenger airplane market.
(LOT) Aircraft Maintenance Services has received an update and expansion of its PART-145 certificate to extend its scope of work to include line maintenance on Rolls-Royce (RRC) (Trent 1000)s on Boeing 787s and base maintenance on (CFM56)s on 737-600s, 737-700s, 737-800s, 737-900s, and 737-900ERs.
The European Aviation Safety Agency (EASA) has awarded Rolls-Royce (RRC) certification for its higher efficiency and thrust Package "C" variant of the (Trent 1000) engine, which will power the stretched version Boeing 787-9.
The first 787-9 rolled out last month and first flight is due imminently. The Package "C" engine is certified to 74,000 lb take-off thrust. It will power the first 787-9 to enter service, which will go to Air New Zealand in 2014. It will also power the 787-8.
A further upgrade to the engine, the (Trent 1000-TEN) will enter service in 2016. This later variant will be certified to 78,000 lb thrust and will be applicable to all variants of the 787, including the recently launched 787-10.
Rolls-Royce (RRC) Program Director (Trent 1000), John Griffiths said: “Certification is another milestone in an ongoing (Trent 1000) program. We look forward to working closely with Boeing to achieve 787-9 first flight soon.”
(RRC) said the (Trent 1000) has delivered a dispatch reliability of better than >99.9% since its service entry with the 787 in 2011: — a record for a wide body airplane engine.
Lufthansa (DLH) has selected (RRC) (Trent XWB) engines worth $1.5 billion, including TotalCare® service support, to power 25/30 orders A350-900 airplanes. The (Trent XWB) is the fastest-selling member of the (RRC) (Trent) engine family, with more than >1,400 ordered prior to its entry into service (EIS) next year.
The announcement continues a close relationship between (RRC) and (DLH). (DLH) has 60 (Trent)-powered Airbus A380s, A330s and A340s, either in service or on order. (RRC) is also a joint-venture (JV) partner with Lufthansa Technik (DLH) (LTK) in the N3 Engine Overhaul Services maintenance business.
The (Trent XWB), specifically designed for the A350 XWB, powered the first test flight of the A350 XWB at Toulouse on June 14 this year.
Rolls-Royce (RRC) has contracted its part-owned Spanish subsidiary, Industria de Turbo Propulsores (ITP) to supply the internal support structure for the high- and intermediate-pressure turbines on the 84,000lb-thrust variant of the (Trent XWB) engine, designed to power the A350-800 and A350-900. The deal is valued at more than >€46 million/$61 million, says (ITP).
(RRC) owns around 47% of Zamudio-based (ITP). The remainder is held by the aerospace arm of Spanish technology group Sener.
The support structure carries the (HP) and (IP) turbine shafts. It includes the housings for the shafts’ rear end bearings and is connected to the outer turbine casing via 11 struts that pass through the engine’s gas path.
The large, complex components are “among the most challenging” parts in an engine “and certainly at the top of (ITP)’s portfolio”, said the engine module specialist.
(ITP) plans to finaliZe the manufacturing process development over the coming months and deliver the first component in June 2014.
October 2013: International Lease Finance Corporation (ILFC) has signed a 12-year lease agreement with SriLankan Airlines (LNK) for three A350-900s. The airplanes will support (LNK)’s long-haul fleet renewal.
SriLankan (LNK) (CEO), Kapila Chandrasena said, “This would be the first time the A350 family airplanes will enter our fleet, and it marks a significant step toward the growth of the airline.”
(LNK) signed a memorandum of understanding (MOU) for six Airbus A330-300s and four A350-900s at the Paris Air Show in June. It is working to prepare for its Oneworld (ONW) Alliance membership early next year.
The A350-900s are powered by Rolls-Royce (RRC) (Trent XWB-84) and are part of an operating lease agreement, which has an anticipated delivery timeline between July and September 2016. (ILFC) has two A330-200s and one A340-300 on lease with SriLankan (LNK).
November 2013: Rolls-Royce (RRC) has won a $5 billion order from Etihad Airways for Trent XWB engines, the world’s most efficient engine flying today, to power 50 Airbus A350 XWB airplanes. The order includes long-term TotalCare® support.
Etihad Airways (EHD), the national airline of the United Arab Emirates (UAE), has ordered 24 A350-900 Regional, 16 A350-900 and 10 A350-1000 airplanes.
The order takes the total number of (EHD) A350 airplanes on order to 62, all powered by the (Trent XWB). The (Trent XWB) is the largest-selling Trent engine, with more than 1,600 on order prior to entry into service next year.
(EHD) also has 28 A330 airplanes in service powered by (Trent 700) engines and 11 A340s in service powered by (Trent 500) engines.
The (Trent XWB), specifically designed for the Airbus A350 XWB, powered the first test flight of the A350 XWB at Toulouse on June 14th this year.
(EHD) has also ordered (Trent 700) engines to power one Airbus A330F freighter airplane with TotalCare support.
Rolls-Royce (RRC) announced that Lee Hsien Yang will join the board as a non-Executive Director in January. Lee serves as a special advisor of General Atlantic and has been a member of the Rolls-Royce (RRC) International Advisory Board since 2006.
The recently announced Airbus A330 Regional passenger jet will be powered by the (Trent 700 Regional), (RRC) announced. (RRC) confirmed the engine’s selection during a customer symposium in China, which will be a key market for the A330 Regional. Airbus (EDS) first announced the A330 Regional in September at the Beijing Airshow.
(RRC) designed the engine with reduced thrust specifically for regional operations, with the goal of saving operators $1 million per airplane as compared to competitor engines. "(Trent 700 Regional) engines will also incorporate the latest performance upgrades (an (EP2) package, available from 2015, will deliver a further +1% improvement, saving over 60,000 USA gallons of fuel per airplane per year," said Tom Palmer, Director Trent 700 Program at (RRC).
January 2014: Gulf Air (GUL) will extend Rolls-Royce (RRC) TotalCare service for (Trent 700)s on six Airbus A330s. Globally, more than >90% of Trent engines in service and on order are covered by TotalCare.
The UK Serious Fraud Office (SFO) has launched a formal investigation into alleged bribery and corruption at Rolls-Royce (RRC).
Just over a year ago, Rolls-Royce (RRC) contacted the (SFO) over concerns that some overseas intermediaries have been involved in bribery and corruption. The move followed an earlier request from the (SFO) for information about possible malpractice in Indonesia and China. “The (SFO) confirmed that the Director has opened a criminal investigation into allegations of bribery and corruption at Rolls-Royce (RRC),” the (SFO) said.
(RRC) also confirmed to the stock exchange that it is now under formal investigation.
February 2014: Rolls-Royce (RRC) is moving into the first full development engine phase of its (Trent 1000-TEN) engine program, and expects to test it by the end of the first quarter.
(RRC) has a total of eight engines in the certification program, with multiple builds, and is looking to achieve certification by the end of 2015, according to (Trent 1000-TEN) Chief Project Engineer, Jeremy Hughes. He said that three full engine demonstrators would use donor hardware from existing (Trent 1000)s to prove out new technologies. These technologies will be introduced in the HP turbine, leaf seals, and fan case dressings of earlier Package B or Package C (Trent 1000) engines so that they can be run in a full environment rather than in a component rig environment. He said the first demonstrator engine is expected to begin flying testbed operations in mid-2015.
“The demonstrator engines will cover a range of new technologies that are key to the (-TEN) achieving improved capability both in terms of additional thrust and improved fuel burn over the previous (Trent 1000) marks,” Hughes said. “However, we are looking to improve the thrust capability and fuel burn, while maintaining reliability standards set by previous marks. In order to do that, we are upgrading the compression system on the (-TEN) and reading back technology from the successful development of the (Trent XWB) program technology. So the entire compression system will show a significant improvement based on new technology.”
In addition to compression system improvements, the (-TEN) will feature improved fan case dressing mechanisms that remove weight from the structures around the outside of the fan case.
New to the (-TEN) is a system that modulates high pressure air. Hughes explained: “Within the engine, the design point for a lot of the air system is defined by more arduous conditions such as takeoff and climb. That means the system is effectively overflowing when the engine is in its cruise portion and burning the majority of the fuel. The modulation of that system allows us to meet the requirements for the arduous points of the operating envelope such as takeoff, but then turn down the amount of air that we need in the cruise portion of the flight envelope. Turning that air down in the cruise portion means we use less air more efficiently leading to lower fuel burn.”
The (Trent 1000-TEN) will be available for all three variants of the 787 (-8, -9 and -10), although because it will be ready to enter service before the (-10) version of the airplane, it will initially go into operation on the -8 and -9 variants.
Hughes also said the (-TEN) is expected to show “significant” fuel burn improvements, of up to 3% compared to the earliest Package B (Trent 1000) engine, and +2% better than the Package "C" variant.
Rolls-Royce (RRC) and Cathay Pacific Airways (CAT) have agreed to "TotalCare" support for (Trent 700) engines on 60 Airbus A330s in service or on order. The contract will run for as long as (CAT) and sister-company Dragonair (DRG) operate (Trent)-powered A330s.
Rolls-Royce (RRC) has been awarded a contract for $182.7 million by the US Air Force (USF) to expand the company’s support of the C-130J transport fleet. The "MissionCare™" contract covers sustainment services for the (RRC) (AE 2100) engines as well as nacelles and propellers on the US Air Force (USF) C-130J fleet. The work includes logistics and program management support, engineering services, spares and technical data support. The (USF) increased its order for spares and spare parts, as well as adding (RRC) Field Service Representatives at two new bases.
Rolls-Royce (RRC) now provides C-130J support at 12 US Air Force bases, with 10 in the USA and two overseas.
Paul Craig, (RRC) President Defence Customer Services, said, “We continually seek new ways to deliver innovative and cost effective support to the US Air Force and we are delighted to be expanding our services on their behalf.“
Through MissionCare, Rolls-Royce offers a suite of services, tailored to each military customer’s needs. The US Air Force contract is in the seventh option year, providing a variety of support for the fleet of C-130J airplanes, (RRC) has met availability metrics every year, while helping the (USAF) meet its combat deployments overseas. Through proactive fleet management, (RRC) has maintained greater than 90% parts and fleet availability.
The (RRC) (AE 2100) engine is part of the (AE) product family, which has over >5,800 engines in service and nearly 60 million flight hours. (RRC) also supports the C-130J engine fleet through its new Defense Operations Center in Indianapolis, providing 24/7 real-time engineering support for operators of a variety of airplanes for the USAF and other military branches.
April 2014: Azul (AZL) announced it has ordered five Airbus A350-900s and six A330-200s to be leased from International Lease Finance Corporation (ILF).
(AZL) said it will use the airplanes to launch international flights by early 2015. Exact routes were not announced, but (AZL) said it will operate flights to the USA from São Paulo Campinas Airport. The A330s will begin delivery to (AZL) in 2015, while A350 deliveries are slated to start in 2017. All 11 Airbus (EDS) airplanes on order will be powered by Rolls-Royce (Trent 772B-60) & (TRENT XWB) engines.
The wide body order marks a major departure from the Brazilian domestic market, regional airplane-based business model Azul (AZL) has operated under since (AZL) launched in December 2008. Its current fleet is comprised entirely of regional airplanes, including 80 Embraer EMB-Jets and 56 ATR turboprops.
Azul (AZL) (CEO), David Neeleman said “Our customers have been asking for this, and now we look forward to providing them with our superior service on international flights, just as we have been doing today on our 880 daily domestic departures.”
May 2014: Rolls-Royce (RRC) has dispatched its first production line (Trent XWB) engine to Toulouse, ahead of the Airbus A350-900’s entry into service (EIS) with Qatar Airways (QTA) later this year.
(RRC) is the sole engine supplier for the three-member A350 XWB family. The A350-900 is powered by a baseline 370 kN/83,000 lb thrust version. This will be de-rated to 330 kN/350 kN for the A350-800, while an upgraded 432 kN thrust version will power the A350-1000. “When we reach peak production in 2017, we will be delivering a (Trent XWB) every working day,” (RRC) (Trent XWB) Program Director, Chris Young said.
On May 13, Airbus (EDS) confirmed the A350 XWB is progressing toward certification, having accumulated more than >1,600 flight test hours. “The first two customer airplanes are now in the assembly line with certification targeted for the third quarter and entry-into-service (EIS) by the end of 2014,” Airbus (EDS) said.
Launch customer, Qatar Airways (QTA) has 43 A350-900s and 37 A350-1000s on order.
June 2014: Rolls-Royce (RRC) has officially opened a £100 million/$168 million advanced turbofan disc manufacturing plant, designed to produce fan discs and turbine discs for the latest generation of the company’s engines.
When fully operational in 2016, the 18,000 sq ft facility in Washington, northeast England, will be able to manufacture 2,500 fan and turbine discs each year. These components will be used in the Trent family of turbofans that power several current twin-aisle types including the Airbus A330/A350 and Boeing 787 airplanes.
(RRC) said ground-breaking manufacturing techniques will include the introduction of robotics and automation for shot peen, painting and chemical processing operations. The factory will also use advanced platforms for processes such as machining, grinding, broaching and inspection. The use of such techniques and tools not only produces a step-change in component performance, but cuts the time required to manufacture a disc by -50%, according to Rolls-Royce (RRC).
The facility makes use of manufacturing methods developed at the UK’s Advanced Manufacturing Research Center (AMRC) in Rotherham, northern England. The (AMRC) is part of a network of centers that aim to apply university research to accelerate the commercialization of new and emerging manufacturing technologies.
Speaking at the opening, Rolls-Royce (RRC) President Aerospace, Tony Wood said (RRC) last year invested £687 million/$1.15 billion in facilities and equipment around the world.
The Washington factory will produce fan discs, which hold the fan blades, and turbine discs, which hold blades in the engine core, where operating conditions are most severe. The latter discs are created using refined powders that are specially processed, then machined to the accuracy of a fraction of the thickness of a human hair. The blades that these discs hold, each generate the power of a Formula 1 racing car.
The temperature within the high pressure turbine is 1,700° C, hotter than the melting point of the turbine blades themselves. They must be coated with a special ceramic and cooled with air passed through the discs and out of a series of tiny holes in the blade.
July 2014: Underlying profits from Rolls-Royce (RRC)’s civil aerospace business declined -10% to £405 million/$686 million for the first six months of 2014.
(RRC) said: “This reflects adverse mix from higher deliveries of (Trent 1000)s for launch customers, lower deliveries of large corporate jet engines, a higher net charge for Research & Development (R&D) and higher restructuring.”
The civil aerospace business generated £3.2 billion in underlying revenue over the six-month period, fractionally down on the first half of 2013. Engine sales rose +4% to £1.5 billion, due to a +16% jump in (Trent 1000) deliveries, but large corporate jets fell -10%. Services revenue also declined -3% to £1.7 million. Engine deliveries for the period fell -1% to 342.
“The order book reduced by -2%, due to deliveries made during the first half and cancellations, primarily by Emirates (EAD) of [Airbus] A350s. The order book contains 2,554 (Trent) engines that will drive the growth in aftermarket revenue over the next decade.”
Orders taken during the first half fell from £10.9 billion to £2.6 billion. The new business included a $1 billion contact to power All Nippon Airways’ (ANA)'s 25 Boeing 787s, along with TotalCare maintenance packages signed with Cathay Pacific Airways (CAT) and Azul Brazilian Airlines (AZL). This caused (RRC)’s civil engine order book to fall to £58.8 billion.
“For the full year, at constant foreign exchange, we expect growth in underlying revenue of +2% to +5% and in underlying profit of +8% to +12%. Our confidence for the second half is underpinned by good visibility of original equipment and services revenue,” the engine manufacturer said.
Rolls-Royce (RRC) and United Airlines (UAL) have agreed to extend TotalCare support for the lifetime of (RB211-535)s operated on (UAL) Boeing 757s. The agreement incorporates ideas from (RRC)'s new TotalCare Flex, an approach currently in development to provide the most effective management of mature engines.
On July 14, the A330neo was formally launched at the Farnborough Airshow. The twinjet will be powered by the (Trent 7000) as the sole powerplant.
At the Farnborough Airshow, (RRC) unveiled the (Trent 7000) as the seventh member of its Trent engine family. It builds on technology from the (Trent 700), which (RRC) said has around 56% - 58% market share on the current generation of A330s, wrapping in new technologies from the (Trent 1000-TEN) and (Trent XWB) programs.
“Because this is based on experience of other members of the Trent family, this is relatively low-risk program for us and we’re confident of meeting Airbus (EDS)’ timescales for entry into service (EIS) at the end of 2017,” (RRC) Civil Large Engines VP Customer Marketing Richard Goodhead said.
The first build and test of the (Trent 7000) is scheduled for 2015, followed by flight test (most likely using Rolls-Royce (RRC)’s 747 testbed) in 2016. “We are aiming to certify in the first quarter of 2017, in time for flight test [on the A330neo] for the rest of that year,” Goodhead said.
Overall, the engine will deliver a +10% gain in fuel efficiency and a -10 dB reduction in cumulative noise, making the (Trent 7000) twice as quiet as the (Trent 700), while maintaining its predecessor’s thrust rating, plus hot and high performance.
The (Trent 7000) will have twice the bypass ratio of the (Trent 700), increasing the fan diameter from 97.5 cm to 112 cm, with an overall pressure ratio of 50:1 compared with 36:1 on the (Trent 700). It has two additional low-pressure turbine stages and will be more stable at lower thrust.
However, the additional architecture and larger fan size will increase the (Trent 7000)’s drag and make each engine around 3,500 lbs heavier. “There is additional weight. Unfortunately, we don’t get something for nothing,” Goodhead said. The engine still delivers a +10% specific fuel consumption benefit after accounting for these penalties.
Earlier this year, (RRC) announced plans to move to composite fan blades with a titanium-sheath leading edge on its new Advance engine, but this technology will not be ready for (EIS) until 2020 and will therefore not feature on the (Trent 7000). “This is a Trent; therefore, we will continue use hollow titanium fan blades,” Goodhead said. “Had it been three years’ later, it would have looked a lot more like the Advance.”
Safran’s Aircelle has been selected by Airbus (EDS) to provide the nacelles for the A330neo. The larger fan means that the (Trent 7000) will need to be “moved forward and up slightly” to maintain ground clearance, according to Goodhead.
August 2014: Rolls-Royce (RRC) has signed a service support agreement with Thomson Airways (ATZ)/(TFY) for (RB211-535)s. The agreement has been designed specifically for (ATZ)/(TFY) and will support (ATZ)/(TFY)’s Boeing 757s for the duration of their time in the fleet.
October 2014: News Item A-1: Norwegian Air Shuttle (NWG)/(NAI) has selected Rolls-Royce (RRC) (Trent 1000) engines for +9 additional leased Boeing 787-9 airplanes. This brings the total number of (NWG)/(NAI)’s (Trent 1000)-powered Boeing 787s to 17.
According to Rolls-Royce (RRC), (NWG)/(NAI) has also ordered long-term TotalCare service support for engines powering the nine airplanes, worth $440 million. The leased airplanes will be powered by the latest version of the (Trent 1000), the (Trent 1000-TEN).
(RRC) Chief Customer Officer Civil Large Engines, Dominic Horwood said the (Trent 1000) is delivering “excellent fuel burn economics and the best reliability performance on the Boeing 787 Dreamliner.”
News Item A-2: Rolls-Royce (RRC) has flown its new-generation composite carbon/titanium (CTi) fan blades for the first time, at the start of the components’ airborne test program. The fan blades completed their first flight on board a company Boeing 747 testbed, flying from Tucson, Arizona, installed on a (Trent 1000) powerplant.
The (CTi) blades are designed to be lighter than their predecessors, while retaining their aerodynamic performance. (RRC) said that, when combined with a composite engine casing, the blades form a system that will reduce an airplane’s weight by up to -1,500 lbs.
The new design is destined for (RRC)’s Advance and UltraFan engines. Advance is designed to offer at least a +20% improvement in both fuel burn and carbon dioxide emissions, compared to first-generation Trent engines. It is being developed with a possible service entry of 2020.
UltraFan, a geared design with a variable pitch fan system, is around five years further into the future. (RRC) is targeting a -25% fuel and emissions saving against the same Trent baseline.
News Item A-3: Rolls-Royce (RRC) has warned that a slowing global economy will stall revenue growth, telling investors that full-year 2014 revenue will fall 3.5% to 4% year-over-year.
(RRC) had previously provided guidance for flat revenue in 2014. However, the company’s Civil Aerospace unit remains a bright spot with (RRC) predicting the unit’s revenue will grow +2% to 5% for 2014.
“In the last few months, economic conditions have deteriorated and Russian trade sanctions have tightened, leading a number of customers to delay or cancel orders particularly in our Nuclear & Energy and Power Systems businesses,” (RRC) said. It projected that the company’s underlying profit will be flat in 2014.
However, the Civil Aerospace unit’s underlying profit is expected to rise +15% to 20% in 2014, which is actually an increase over previous guidance of an +8% to +12% rise.
Looking to next year, (RRC) said “the economic outlook for 2015 has become more challenging. We previously said that we expected a resumption of growth in 2015. In the light of these uncertainties, our current best estimate for 2015 is that [the company’s] underlying revenue will be in the range of +/-3% and profit in the range of 0% to -3% compared with our expected outcome for 2014 at constant exchange rates.”
But the UK engine manufacturer pointed to Civil Aerospace as the exception, saying the market for commercial aircraft engines “will strengthen, driven by increasing demand for travel in the emerging economies, and the need to replace older aircraft with new fuel efficient models.”
News Item A-4: Rolls-Royce (RRC) said it has finalized a deal to create a joint venture (JV) which will design and develop accessory drive train transmissions for all of the company's future civil aircraft engines. The (JV) with Hispano Suiza, part of the French aerospace and defense company, Safran, will run for an initial 25-year contract and will contribute to a range of airplanes, including engines for the new Airbus A330neo jet.
The companies said a production plant would be built in "a competitive country" starting next year. The two companies first announced the deal in July.
November 2014: News Item A-1: Rolls-Royce (RRC), trying to regain investors’ confidence in the face of its declining revenue performance, has unveiled a cost-reduction plan that will include -2,600 job cuts.
(RRC) said the cuts, which represent nearly 5% of its 55,000 employees worldwide, will come over the next 18 months and mainly occur in its Aerospace division. (RRC) did not say where, geographically, the jobs would be cut. (RRC) has about 16,000 employees in Britain.
Even though (RRC) cited its Civil Aerospace unit as a bright spot in an October profit warning, the job cuts will come “principally” from Civil Aerospace, the UK-based engine manufacturer said. The jobs will be cut over the next 18 months with the majority made in 2015, the company said.
(RRC) said the restructuring will save it “around -£120 million/-$195 million over the next two years. We expect annualized cost benefits of around £80 million when fully implemented.”
(CEO), John Rishton said, “We are taking determined management action and accelerating our progress on cost. The measures announced today will not be the last; however, they will contribute towards (RRC) becoming a stronger and more profitable company. We will work closely with employees and their representatives to achieve the necessary reductions on a voluntary basis where possible, while making sure we retain the skills needed for the future.”
(RRC) also said that its Chief Financial Officer (CFO), Mark Morris, a 27-year Rolls-Royce (RRC) veteran, was leaving the company. He will be succeeded by David Smith, a former (CEO) of Jaguar Land Rover, who joined (RRC) this year and has been serving as (CFO) of the Aerospace unit. (RRC) (which is separate from the automaker Rolls-Royce Motors, owned by BMW) gave no explanation for Mr Morris's departure.
Mr Rishton announced the job reductions after (RRC) disappointed investors in mid-October, when it forecast that its profit next year would decline as much as -3% after previously predicting that profit would grow in 2015.
(RRC)'s stock price had fallen almost -10% since that announcement, though it closed +1.5% higher in London on November 4th.
In October, Mr Rishton said that economic conditions had deteriorated quickly and that revenue at (RRC), as at many other companies, would come under pressure. (RRC) also said that sanctions on Russia were contributing to delays and canceled orders.
At the time, (RRC) said that profit for the current year, excluding acquisitions and sales of businesses, was likely to be flat, with revenue declining up to -4%.
The October profit warning and one in February interrupted a long streak of profit growth at (RRC) as it developed new engines for Boeing (TBC) and Airbus (EDS). In the decade through 2013, revenue nearly tripled to 15.5 billion pounds, or $24.8 billion, while profit was up about sixfold to about £1.8 billion in 2013.
In its announcement, (RRC) said that it was able to make cuts because the (Trent 1000) and (Trent XWB) engines it produces for the Boeing 787 and the Airbus 350 were now in production, rather than design, reducing the number of engineers needed.
News Item A-2: Rolls-Royce (RRC) said it won a US$5 billion contract to supply aero engines to power 50 new Airbus (EDS) airplanes ordered by Delta Air Lines (DAL).
(RRC) said on that the order for engines also included the provision of long-term post-delivery services as part of a "TotalCare" support package. The engines ordered are the (Trent XWB) engines to power 25 Airbus A350s, and (Trent 7000) engines to power 25 Airbus A330neo airplanes. Rolls-Royce (RRC) is the sole supplier of engines for both airplane types.
January 2015: Rolls-Royce (RRC) celebrated a milestone at the company’s Seletar Campus with the unveiling of a (Trent 1000) engine, the first to be made in Singapore for Singapore’s very own long-haul budget carrier, Scoot (SCT). The (Trent 1000), which is fully assembled and tested by a team of 80, will provide power to Scoot (SCT)’s new fleet of 20 Boeing 787 Dreamliner airplanes.
Mr Heng Swee Keat, Minister for Education, witnessed the ceremony alongside Campbell Wilson, Scoot (SCT) (CEO), and Jonathan Asherson, Rolls-Royce (RRC) Regional Director (ASEAN) & Pacific. “As a Singapore-based airline we support all things Singapore (and it’s especially fantastic to be able to feature Singapore-built engines on our brand-new 787s),” said Campbell Wilson, (SCT)’s (CEO).
Campbell added, “(RRC)‘s (Trent 1000) engines, along with the 787’s other advances, will save us fuel so that we can keep saving you money in the form of great value airfares so that you can get outta here more often!”
The (Trent 1000) engine delivers exceptional environmental performance on the Boeing 787 Dreamliner with the best through-life fuel efficiency and lowest noise. (RRC) powered the very first Boeing (TBC) 787 test flight in December 2009, the first 787-8 to enter service in October 2011, and the first 787-9 to enter service last year.
February 2014: News Item A-1: Rolls-Royce (RRC)’s underlying profits from its civil aerospace business rose +12% to £942 million/$1.4 billion in 2014, off the back of a +3% boost in underlying revenues.
For the full 2014 financial year, (RRC)’s underlying civil engine revenues grew +8% to £3.3 billion, boosted by the ramp-up in (Trent 1000) production, while services revenue fell -1% to £3.6 billion. Net orders were up +5% at £11.7 billion, with aftermarket services making up 31% of that total. (RRC)’s civil aerospace order book stands at £63 billion.
The underlying profit improvement was driven by higher volumes and improved aftermarket margins, but was partly offset by a +£63 million increase in restructuring costs and an extra £151 million hit from Research & Development (R&D) costs.
“In 2015, we expect revenue between £7.0 and £7.3 billion, with continued growth in (Trent XWB) and (Trent 1000) original equipment sales, and good growth in aftermarket revenue. We expect this to be partially offset by fewer (Trent 900) and (Trent 700) sales. We expect profit to be between +£800 and +£900 million, as the retrospective TotalCare accounting adjustments do not repeat at similar levels,” (RRC) said in a stock market disclosure.
During 2014, (RRC) delivered the first (Trent XWB) engine to launch customer Qatar Airways (QTA) and secured the (Trent 7000) as sole source for the Airbus A330neo, which enters service in 2017.
Rolls-Royce (RRC) (CEO), John Rishton described it as a “mixed year” with “challenging conditions,” which triggered a major restructuring of its Aerospace Division. This includes -2,600 job cuts in the Aerospace Division and central functions. By the end of 2014, 545 people had left the business, with the majority of the reductions expected in 2015.
“This program is expected to result in restructuring charges of around £120 million, of which £56 million was recognized in our 2014 results. We anticipate annualized cost benefits of around £80 million from 2016 onwards, with £50 million in benefits expected in 2015. Our total Aerospace 2014 restructuring activities cost £164 million (of which £139 million was underlying),” it said.
These cost savings will take a while to feed through and airplane program delays mean that some capacity has come on line before it is needed, leaving (RRC) with under-utilized production facilities. “We have also constructed a number of new world-class facilities to replace older, less productive plants. For a period of transition, we are carrying the cost of both the old and new facilities,” Rolls-Royce (RRC) said.
(RRC) operates as two divisions: Aerospace, and Land & Sea. At group level, underlying revenue fell -6% to £14.6 billion, while underlying pre-tax profit dropped -8% to £1.6 billion. Group restructuring costs in 2014 totaled £188 million.
News Item A-2: (GKN) Aerospace has signed a long-term agreement with Rolls-Royce (RRC) to supply components for a capability enhancement of the (Trent 1000) on the Boeing 787. This agreement is worth more than >$200 million and makes (GKN) responsible for outer guide vane mount rings and rear fan cases for the engine.
News Item A-3: Rolls-Royce (RRC) North America announced that President & (CEO) James Guyette plans to retire at the end of May, 2015. US Aerospace Industries Association (AIA) President & (CEO), Marion Blakey has been appointed President & (CEO) of Rolls-Royce (RRC) North America starting in May.
Blakey, who will also chair the Rolls-Royce North America board of directors, will replace James Guyette, who is retiring. Blakey has headed (AIA), which represents the interests of USA aerospace manufacturers, since November 2007. She previously has been the (FAA) Administrator and Chairperson of the US National Transportation Safety Board (NTSB).
The North American division of UK-based engine manufacturer Rolls-Royce (RRC) employs more than >8,000 workers in the USA, Canada and Mexico.
During her tenure with the (AIA), the organization's support of the advancement of and implementation of different aspects of the (FAA)'s NextGen program was widely recognized by the industry and government officials.
“I’m very proud of (AIA)’s record of achievement these last seven years,” said Marion. “I’d like to thank (AIA)’s executive committee, board of governors and the entire staff for their guidance, hard work and commitment. I strongly believe we’ve strengthened (AIA) and better positioned the organization and our member companies to inform and influence the debate on key issues facing our country and our industry in the coming years.”
Rolls-Royce (RRC) (CEO), John Rishton said, “We are extremely pleased to have Ms Blakey leading the North American region because she brings deep industry perspective and is a well-respected voice in Washington.”
Guyette added that Blakey “is a valued and trusted voice in our industry . . . This experience (with (AIA) and previously with the (FAA) and the (NTSB)) will be extremely valuable to Rolls-Royce (RRC).”
March 2015: News Item A-1: (ITP) has signed a strategic collaboration agreement with Rolls-Royce (RRC) to supply low-pressure turbines for its new generation engines (UltraFan engines) which are expected to be in service from 2025.
News Item A-2: Rolls-Royce (RRC) opened in Rotherham, UK, a £110-million/$120 million Advanced Blade Casting Facility to be fully operational in 2017, with capacity to manufacture more than >100,000 single crystal turbine blades a year.
April 2015: News Item A-1: Emirates Airline (EAD) announced a $9.2 billion order for Rolls-Royce (RRC), choosing the UK powerplant manufacturer to equip the 50 Airbus A380s it ordered at the 2013 Dubai Airshow.
The deal covers 200-plus engines and a long-term TotalCare service support package. Taken together, the contract is the largest non-military contract ever won by a UK engineering company.
(EAD)’s current A380s are powered by the Engine Alliance (GP7200). However, (CEO), Tim Clark made it clear this order had gone to Rolls-Royce (RRC) because of its greater commitment to improving its product. This included incorporating technology from the (Trent XWB) developed for the Airbus A350 and (Trent 1000) models. “What impressed us with (RRC) was its continued commitment to applying the technologies they were developing into their engines. Perhaps we couldn't see that so much from [Engine Alliance]. There’s a certain amount of flat-lining on that,” he said.
The first 25 of Emirates’ 50 new A380s will be delivered from late 2016 through the first quarter of 2018. The remainder was further out “but we’re looking at advancing some of those into the 2019 - 1920 timeframe.”
Emirates (EAD) wants to use the new A380s to allow the release of (EAD)’s Boeing 777s for developing new routes. If these develop satisfactorily, they will in time receive A380s.
(EAD) is by far the world's largest user of the ultra-high capacity A380, with 60 already in service and +80 more on order.
Clark noted that annual global passenger numbers were predicted to rise from 3.3 billion today to around 6.6 billion in 10 - 15 years’ time. This growth would require airlines such as (EAD) to “up-gauge” their fleets.
Rolls-Royce (RRC) has now secured more than a >50% market share of A380 powerplant orders. The (Trent 900) is used on more than >70 airplanes by eight operators.
Clark has repeatedly called for Airbus (EDS) to develop a “neo” version of the A380. He largely sidestepped questions on the issue but said that if the new airplane went ahead, a developed version of the (Trent XWB) would “significantly improve what the A380 can do.”
News Item A-2: Rolls-Royce (RRC) has named former (ARM) Holdings (CEO), Warren East to succeed current (CEO), John Rishton, who is retiring July 2. Rishton has been (CEO) for nearly four years and was previously (CFO) for 10 years.
(RRC) Chairman, Ian Davis said that during Rishton’s tenure, “profits have increased by +69%, the order book has grown by +24% and the share price has risen +63%.”
East led semi-conductor firm (ARM) Holdings from 2001 to 2013 and has been a (RRC) non-Executive Director since January 2014. He also serves as a non-Executive Director of (BT), De La Rue, Dyson, Micron and Digital Catapult. His will stand down from all but one of these non-Executive Director roles, in line with Rolls-Royce (RRC) policy.
“Warren has an outstanding record as (CEO) of (ARM) Holdings,” Davis said. “He is an Engineer by training; he has a deep understanding of technology and of developing long-term partnerships. He has proven strategic and leadership skills in a global business and a strong record of value creation.”
July 2015: News Item A-1: UK engine manufacturer Rolls-Royce (RRC) anticipates a dip in its near-term financial results as it transitions to new models of its (Trent) powerplant.
Updating its financial guidance through 2016, prior to releasing its 2015 half-year July 30, (RRC) identified several market developments this year “that are now expected to have a more significant impact in 2016.”
These primarily related to its civil aerospace business, particularly for the (Trent 700) engines during its transition to the new (Trent 7000), together with its engines for business and regional jets, and in its marine engines business. It is looking at restructuring the latter business.
Its guidance for the civil aerospace sector this year remained unchanged, with (Trent 700), business jet and regional aftermarket headwinds amounting to around £300 million/$460 million.
“Notwithstanding these expected headwinds, we continue to believe that the Group can achieve significant improvements to returns and cash flow, albeit later than previously indicated.”
Its guidance for 2015 revenue remained unchanged, with Group underlying pre-tax profit now expected to be between £1.32 to £1.47 billion, compared to previous guidance of £1.4 - £1.55 billion. Given a weaker near-term cash outlook, the Group was discontinuing its share buyback program, having completed half of the planned £1 billion program.
“In civil aerospace, we continue to expect 2015 underlying revenue and profit within the guided range provided in February of £7 to £7.3 billion and £800 to £900 million, respectively. However, we now expect the impact of reduced (Trent 700) deliveries to be greater than initial estimates.
“These market headwinds should be balanced by good growth in our wide body aftermarket and a larger-than-expected benefit from the reversal of a balance sheet provision on the (Trent 1000) launch, as a result of an expected significant improvement in operating performance, and by improved retrospective TotalCare contract profitability.”
Looking to 2016, Rolls-Royce *RRC) said recent changes in demand and pricing for the (Trent 700), which is transitioning to the (Trent 7000), combined with the reduced demand for business jet engines and a softer regional aftermarket, were expected to create a £300 million net civil aerospace profit headwind into 2016.
The (Trent 700) is the most widely used powerplant on the Airbus A330, while the new (Trent 7000) will be the exclusive engine on the A330neo.
Looking further ahead, (RRC) said that the roll-out of new engines, led by the (Trent XWB), (TRENT 1000) and (TRENT 7000), together with a growing aftermarket, was expected to drive significant revenue growth over the next decade as it climbed toward a 50% share of the installed wide-bodied passenger market.
“While the impact of the transition to the (Trent 7000) has reduced (Trent 700) deliveries, and held back civil aerospace profit in the near term, we are confident that the important investments we are making to transition our production will create a strong platform to drive customer service, improved margins and strong cash flows,” it said.
News Item A-2: Rolls-Royce (RRC) has been selected by Africa’s RwandAir (RWA) to supply (Trent 700) engines to power two Airbus A330 aircraft, which were ordered in March. The agreement makes (RWA) a new Rolls-Royce (RRC) customer.
August 2015: News Item A-1: Rolls-Royce (RRC) Holdings reported underlying profit before tax of +£439 million/+$684.3 million for the first half, down -32% year-over-year, on underlying revenues of £6.3 billion, down -3%.
(RRC) had warned last month that profits were likely to be down, due to a combination of its aerospace division transitioning to a new generation of Trent engines and continuing weakness in its marine business. “Despite the disappointment of our recent update, our second-half outlook remains positive and full-year guidance for revenue, profit and cash issued July 6 remains unchanged,” new (CEO), Warren East said.
“The continued growth in our order book demonstrates the long-term demand for our innovative products and services, and underpins my confidence in the fundamental strength of our business.”
The Group’s order book for the first half was £76.5 billion, up +£2.8 billion on the same period last year.
The aerospace division recorded a +2% rise in underlying revenue to £4.3 billion, but underlying profit before tax and charges dropped -27% to +£432 million.
(RRC) reiterated its comments from last month that “recent changes in demand and pricing for our (Trent 700) program, combined with the reduced demand for our business jet engines and a softer regional aftermarket, are expected to create a +£300m net Civil Aerospace profit headwind into 2016.”
Looking further ahead, it said the successful roll-out of new engines, such as the (Trent XWB, 1000 and 7000), together with a growing aftermarket, is expected to drive “significant revenue growth” over the next 10 years as (RRC) builds toward a +50% plus share of the installed wide body passenger market.
“In the near term, we are managing a significant transition from mature engines to newer, more fuel-efficient ones,” East said. This means that mature, more profitable power plants such as the (Trent 700) are now peaking or are in decline; newer programs typically see lower pricing for launch customers and higher initial costs.
News Item A-2: Rolls-Royce (RRC) has won a $580-million TotalCare long-term contract with Vietnam Airlines (VIE) for (Trent XWB)s on 14 Airbus A350 XWBs.
Separately, (RRC) has appointed the (HAECO) Group as its first authorized on-wing services provider in the Asia-Pacific region. On-wing services are jointly provided by (HAECO) Hong Kong and Hong Kong Aero Engine Services Limited, and currently cover (RB211)s, (Trent 500s), (Trent 700s) and (Trent 800s), as well as the (IAE) (V2500).
News Item A-3: The International Airlines Group (IAG) has selected Rolls-Royce (RRC) (Trent XWB) engines for eight Airbus A350-900 airplanes that will be operated by Iberia (IBE).
The aircraft are in addition to eight (Trent XWB)-powered A350-900s ordered by (IAG) for (IBE) in August last year.
(IBE) already operates a fleet of 17 (Trent 500) powered A340-600s.
(RRC) said that more than >1,500 (Trent XWB) engines have been sold to 40 customers.
September 2015: Rolls-Royce (RRC) signed the first widebody agreement for its new TotalCare Flex service, designed for mature engines, with Cathay Pacific (CAT) to support (Trent 800)s on 17 Boeing 777s. It is also the first TotalCare Flex agreement with an aircraft owner and operator.
(RRC) has also signed a $700-million deal to provide (Trent 700)s and long-term TotalCare support for five new Airbus (EDS) Beluga XL cargo aircraft, which will replace the current Beluga fleet.
October 2015: News Item A-1: Rolls-Royce (RRC) has reached an agreement worth US$2.4 billion for engines and services with the (HNA) Group. The agreement was signed during the state visit by the President of the People's Republic of China to the United Kingdom.
The (HNA) Group is a conglomerate with interests in aviation, financial services, tourism and hospitality, logistics, real estate and retail. (HNA) Aviation currently operates and manages, amongst others, Hainan Airlines (HNA), Tianjin Airlines (GCR) and Capital Airlines (DER), flies to over >250 cities and serves 72 million passengers annually. The (HNA) Group currently operates 33 (Trent 700) powered A330 aircraft.
The engines included in the agreement will power a total of 44 aircraft that have already been ordered with Airbus (EDS).
The agreement was signed in London, by (HNA) Group Chairman, Chen Feng and Rolls-Royce (RRC) (CEO), Warren East and was welcomed by Chinese President, Xi Jinping and UK Prime Minister, David Cameron.
The agreement covers:
(Trent 700) engines and TotalCare® service support for 20 Airbus A330s.
TotalCare service support for (Trent XWB) engines that will power 15 Airbus A350-900s.
TotalCare service support for (Trent 700) engines that power five A330F freighters and four Airbus A330s.
The (Trent 700) has won more than >60% of new orders over the last three years. More than >1,500 (Trent 700)s are now in service or on firm order, making it the most popular in-service (Trent) engine. The (HNA) Group agreement reinforces our confidence in managing a successful transition from the (Trent 700) to the new (Trent 7000), the exclusive engine for the A330neo aircraft.
The (Trent XWB) is the world's most efficient large civil aero engine and more than >1,500 engines have already been sold to 40 customers.
November 2015: News Item A-1: Rolls-Royce (RRC) faces short-term difficulties, but is essentially a profitable company, new (CEO), Warren East said.
Presenting an update on the review of operations he instigated after becoming (CEO) last July, East admitted to problems such as top-heavy management structures, internal complexities and an inability to respond to rapidly changing markets as quickly as desirable.
But he said the company is fundamentally sound, with good prospects in the areas where it has the greatest strengths, such as powering wide bodies.
(RRC) has made investors nervous by issuing five profit warnings in two years; (CFO), David Smith said the Group’s financial position remains essentially healthy and gearing remains low.
Rolls-Royce(RRC) supplies aero engines for several different market sectors.
In the regional jet and narrow body segments, (RRC) has only a legacy position in the first, and a relatively small position in the latter, East said, with the second likely to diminish further. There are no new opportunities for (RRC) to get involved in narrow bodies until replacements for the Boeing 737 and Airbus A320 families appear in the early 2030s, he noted.
Despite the fact the narrow body market is booming, East said this is “not something we should be wasting our time about debating at the moment.” Decisions will need to be made in the early 2020s over the company’s future stance in that market sector. At the moment, he said, (RRC) should “harvest” profits from the aftermarket for smaller engines.
In the wide body sector, East said (RRC) has a strong position in a growing market, with a market share that will grow, with the company’s engines on course to achieve more than >50% of the market’s installed base by the early 2020s.
East repeated the company faces “headwinds” as its product range switches to new models. He said he accepts Rolls-Royce (RRC) is selling some of its new models at a lower price, but “This is launch pricing, which is normal. Contrary to popular belief, pricing is robust.”
East likened (RRC) to “an athlete that is a little bit overweight,” foreshadowing an anticipated cutback in management structures over coming months.
He also pledged to improve simplicity at (RRC). For example, it is currently managing what is described as 27 key technologies. The number of meetings required to manage that number of projects is very high, he said. The intention is to slim these 27 down into eight technology “themes.”
He accepted the organization is going through great change “But just because we’re going through a period of change doesn’t mean we’re not sitting on a great business with great potential,” he said.
News Item A-2: Portuguese national carrier (TAP) Portugal has signed a firm order with Airbus (EDS) for 53 aircraft from the European manufacturer, it announced on November 13.
The deal will see (TAP) taking 14 A330-900neo plus 39 A320neo family models, consisting of 15 A320neos and 24 A321neos. (TAP) is already an all-Airbus (EDS) customer, with a current fleet of 43 A320 family models (21 A319, 19 A320 and three A321s) plus 14 A330-200 and four A340-300 wide bodies.
The aircraft will join (TAP) as part of its fleet renewal announced by (TAP)’s new majority owner, Atlantic Gateway. As part of the agreement, (TAP) Portugal is substituting its previous order of 12 A350-900s with the A330-900neos.
“Our latest order for 14 Airbus A330-900neo aircraft and 39 A320neo family aircraft reflects our ongoing commitment to provide our customers with the next generation of fuel efficient aircraft,” (TAP) (CEO) Fernando Pinto said. “The A330neo, like the A320neo family, will give us the flexibility to enter new markets and improve the frequency of existing ones.”
The A330-800neo and A330-900neo were launched in July 2014, with first deliveries scheduled to start in (4Q) 2017. The A330neo incorporates Rolls-Royce (RRC) (Trent 7000) engines, aerodynamic enhancements and new cabin features, with Airbus (EDS) forecasting a +14% improvement in fuel consumption per seat compared to current A330s. Additionally, range increases by around +400 nautical miles.
December 2015: News Item A-1: "Rolls-Royce (RRC) to build all (Trent 7000)s in Singapore" by (ATW) Jeremy Torr, December 10, 2015.
Rolls-Royce (RRC) will build more than >300 (Trent 7000) engines for all new Airbus A330neos in Singapore at its Seletar facility. Airbus lists 159 of the wide body aircraft on order, with expected delivery of first production units in the fourth quarter of 2017.
(RRC) said it decided on the Seletar facility based on its proven expertise at building (Trent 1000) engines for the Boeing 787. “There are many areas of commonality with the (Trent 1000) that we build here already, so it means we already have the expertise to build [the new engine],” (RRC) Singapore Director, Bicky Bhangu said.
The Singapore operation expects to ramp up production from its current 170+ power plants a year to 250 a year by 2017, and to increase production of its titanium-formed fan blades to correspond with the production hike.
(RRC) Regional Director (ASEAN) & Pacific, Jonathan Asherson said the company is also looking to boost operations in Singapore to create a regional hub there for all its business arms. “We are getting fan casings made in Malaysia, already have several [component] suppliers in Thailand, and are looking at Indonesia as a possible site for some manufacturing,” he said.
Asherson said the move to build the (Trent 7000) from scratch in Singapore, not outsourced from Rolls-Royce (RRC) headquarters in Derby, UK, is a highly significant move for the company. “This is not just a delegation of authority from Derby to Singapore; the authority itself has moved here,” he said.
News Item A-2: "Tony Wood to Leave in Rolls-Royce (RRC) Shake-up"
by (ATW) Victoria Moores, December 16, 2015.
Rolls-Royce (RRC) is removing a “senior management layer” as part of its restructuring, which will see the departure of Aerospace President, Tony Wood.
From January 1, 2016, (RRC) will consolidate its activities into five businesses: Civil Aerospace, Defense Aerospace, Marine, Nuclear, and Power Systems.
Under the revamp, (RRC) will merge its Civil Large Engines (CLE) and Civil Small & Medium engines (CSME) businesses into a Civil Aerospace Division. The new entity will be led by current (CLE) President, Eric Schulz, who will become Rolls-Royce (RRC) President of Civil Aerospace.
“As a consequence of these changes, Tony Wood (President Aerospace) has decided to leave the company,” (RRC) said. Wood has been with (RRC) for 15 years. He will remain with the company into 2016, during the transition.
(RRC) also named Group Director of Engineering & Technology, Colin Smith as Group President, effective January 1, 2016, with his former role transferring to (CLE) Engineering Director, Chris Barkey.
As a further part of the management re-shuffle, a new (RRC) (COO) will be named in 2016.
“The changes we are announcing today are the first important steps in driving operational excellence and returning Rolls-Royce (RRC) to its long-term trend of profitable growth,” (RRC) (CEO), Warren East said.
(RRC) is rolling out the changes to simplify its organization, “clarify executive accountabilities” and “intensify leadership focus on operational performance,” as it seeks £150 to £200 million/$227 to $303 million) in annual cost savings from 2017.
The UK powerplant manufacturer has made investors nervous by issuing five profit warnings in two years, triggering a restructuring which was announced on November 12. A further update will be given in February 2016.
News Item A-3: "Rolls-Royce (RRC) Eyes Possible Re-entry into Smaller Plane Market" by Graham Ruddick, The Guardian, December 30, 2015.
Warren East, the (CEO) of Rolls-Royce (RRC) has said the prospect of making engines for narrow bodied aircraft is very attractive, but warned that the cost of re-entering the market would be significant.
The comments from Warren East, who took over as boss of the manufacturing group in July, have been interpreted by analysts as meaning that the company would only return to the booming market for planes that carry up to 200 people, through a major corporate deal.
There has been speculation in the City that (RRC) could look to buy back into a joint venture (JV) with its rival, Pratt & Whitney (PRW), which it left in 2012. In return, (PRW), the USA company would likely seek a major stake in Rolls-Royce (RRC)'s wide-bodied business, which makes engines for the Airbus A380 superjumbo.
(RRC) has struggled after issuing five profit warnings in less than two years, and its share price has fallen by almost half since late April. The Derby, UK-based group has blamed its profit warnings on a collection of factors, including falling demand for corporate jets and the slump in the price of oil hurting customers in the energy industry.
However, at the center of its troubles, is the decision to pull out of making engines for narrow bodied aircraft to focus on wide bodied planes such as the A380, the A350 XWB, and the Boeing 787 Dreamliner. Since then, orders for wide bodied aircraft have slowed, while the narrow bodied market is booming thanks to the demand for the A320neo and the Boeing 737 Max. This means that General Electric and Pratt are outperforming the British company.
East made his comments about the market for small planes in a presentation to investors at the end of November. In the presentation, East warned that there was a "significant cost of re-entry so [the] business case would need to be compelling." However, he also said that (RRC) was still making money from servicing engines on older narrow bodied planes and could develop new engines for the generation of planes that will replace the A320 and the 737.
These new aircraft will not enter service until around 2030, and (RRC) said it would make a decision on whether to try to develop engines for those products in the early 2020s. But East insisted that (RRC) does not have to re-enter the narrow-bodied market.
"The big question, I think (and there's been a lot of debate that I've heard since joining the business) is "so what about narrow body in the future' and 'surely you have to be in narrow body in the future?" I think the answer is "no, we don't." We don't have to be in narrow body in the future. It's a great opportunity at some stage when it arises. But right now, there isn't an opportunity. There is no opportunity for us to enter this business until the early 2030s. There's maybe a little bit of discussion about a sort of quasi wide body opportunity maybe five years ahead of that.
"So this is actually not something that we should be wasting our time on right now in terms of debating. We don't actually need to do anything right now other than enjoy the aftermarket [engine servicing] revenue and work on making sure that we're earning that aftermarket revenue as efficiently as possible and maximising the profit opportunity on that over the next several years. Developing our technology and taking advantage of an opportunity if and when an opportunity arises, that is essentially the position for now on narrow body."
After pulling out of narrow-bodied planes, a decision made by former boss Sir John Rose, (RRC) has been able to focus on wide bodied aircraft, which typically hold 250 people or more. It is on course to claim a 50% share of the market by 2020, up from 30% today. The company is the exclusive supplier for the A350. However, pulling out of the narrow bodied market has hurt (RRC)'s sales volumes, leaving its factories short of work. East is attempting to cut costs by up to 200 million pounds a year in a bid to get the company back on track.
The level of concern about the future of (RRC) was underlined this month when it emerged the government has drawn up contingency plans to nationalize its nuclear submarine business or force it to merge with defence manufacturer (BAE) Systems in the event the company's performance worsens. The government has a golden share in (RRC), meaning it can block any takeover and prevent a foreign investor owning more than >15% of the company. ValueAct, an activist investor based in California, has built a 10% holding in (RRC) and wants a seat on the board.
On top of (RRC)'s operational problems, it is mired in a Serious Fraud Office investigation about bribery allegations in China, Indonesia, and other parts of the world.
January 2016: News Item A-1: "Rolls-Royce (RRC)’s New Regional Approach to Repairs Paying Off" by (ATW) Alan Dron, January 14, 2016.
UK engine manufacturer Rolls-Royce (RRC), which introduced a more regional approach to repairs last year, has seen a substantial improvement in response times to customer powerplant options.
In a briefing at its Derby, UK, headquarters January 13, (RRC) said it had introduced a new system last year to bring repair services closer to its customers.
Previously, the company’s customer support model had been very “Derby-centric,” (RRC) Head of Marketing Services, Alex Dulewicz said.
However, the expansion of its installed engine base has been rapidly increasing—from 3,354 in 2005 to 4,600 in 2015, and an estimated 7,450 in 2025. Its growing customer list was looking both for faster response times to problems and for Rolls-Royce (RRC) to take greater accountability for managing and closing out those problems.
The powerplant manufacturer had recognized there was a particular problem with differences in time zones, Dulewicz said. Singapore and other major Asian hubs were eight or more hours ahead of the UK, which meant that many Asian-Pacific airlines were reaching the end of their working day just as people in the UK started theirs.
With this in mind, (RRC) had set up regional teams in Customer Service Centers (CSCs) for the Americas (based in Washington DC), Greater China (Beijing) and Asia-Pacific (Singapore).
Singapore was the first to trial the new system, with Engineering authority delegated to staff there, he said. This had resulted in “significant improvements in the level of responsiveness.” As part of the trial, Singapore had positioned satellite “airline support teams” in eight other locations around the Asia-Pacific region.
“In just 12 months, Singapore has improved customer issue resolution lead time by 65%,” Dulewicz said. Another factor improving relations with airlines was that by positioning teams locally, cultural issues such as speaking the same language as customers were addressed.
Europe, Middle East and Africa continued to be managed out of Derby.
Asked why a regional team had not been established in the Middle East, which is typically three or four hours ahead of the UK and contains some of Rolls-Royce (RRC)’s major customers, Dulewicz said the company would continually review the situation.
A separate team covering the Middle East and Africa had been established in Derby and also had greater delegated powers, he added. Personnel in each (CSC) had also been set up specifically to look after maintenance problems affecting lessors’ aircraft, an increasingly important part of (RRC)’s customer base.
The (CSC)s, other than Singapore went, live on January 4.
Derby would continue to handle round-the-clock monitoring of engine problems worldwide, Dulewicz added.
News Item A-2: "Rolls-Royce Plans New "SelectCare" Maintenance Plan"
by (ATW) Alan Dron, January 14, 2016.
Rolls-Royce (RRC) has announced a new engine maintenance program, SelectCare, in addition to its TotalCare program and traditional Maintenance Repair & Overhaul (MRO) services.
SelectCare is a third option between its TotalCare program, in which airlines have long-term cost certainty on a dollar-per-hour basis and traditional (MRO) services, where an operator pays for an aircraft’s individual visits to a repair shop.
SelectCare is expected to be popular with carriers operating mature aircraft that may be nearing the end of their service lives.
“It allows us to offer a certain number of overhauls at a fixed price and airlines can take some of the options of TotalCare,” said Richard Goodhead, (RRC) Senior VP Customer Strategy & Marketing, Civil Large Engines.
(RRC) believes the new arrangement will increase the degree of flexibility open to airlines in deciding maintenance costs.
The first customer for the new program will be American Airlines (AAL), which has signed up the (RB211-535) engines on its Boeing 757 fleet. These were previously supported by separate TotalCare and (MRO) Services agreements. (AAL) was the first airline to choose TotalCare in 1999.
News Item A-3: Delta TechOps has agreed with Rolls-Royce (RRC) to establish (BR715) overhaul capability at TechOps in 2016. Delta Air Lines (DAL) has 91 (BR715)s entering service, and the agreement is part of Rolls-Royce (RRC)’s plan to develop a competitive network for its customers.
February 2016: News Item A-1: "American Airlines Picks SelectCare for 757 Fleet" by Flightglobal Michael Gubisch, Maintenance, February 2016.
See attached - "RRC-2016-02 - Rolls Royce SelectCare.jpg."
(AAL) has become the launch customer for Rolls-Royce (RRC)'s new fixed price, engine overhaul scheme, SelectCare. The program is derived from the UK (RRC)'s hours based TotalCare aftermarket support package.
(RRC)'s deal with (AAL) covers a set number of overhauls for (AAL)'s
(RB211-535) engines which power its 757 fleet (66 757-200 airplanes).
News Item A-2: Norwegian (NWG) has selected Rolls-Royce (RRC) (Trent 1000) engines for its 19 new Boeing 787-9s, which were ordered in October 2015. (RRC) valued the engine order at $2.7 billion and includes TotalCare long-term service support the new 787s.
The order also includes TotalCare for (Trent 1000) engines that will power 11 previously announced leased Boeing 787s yet to enter service.
(NWG) also has options for 10 further airplanes which, if confirmed, will be powered by the (Trent 1000).
March 2016: Rolls-Royce (RRC) will supply maintenance and support for El Al Israel Airlines (ELA)’s (Trent 1000) engines that have just been selected for (ELA)’s new Boeing 787s. (ELA) has ordered 15 787 Dreamliners, with options for an additional 13.
May 2016: News Item A-1: Rolls-Royce (RRC) stopped short of issuing another profit warning, but (RRC) said it will depend on the second half of 2016 to achieve its profit guidance for the year.
(RRC), which issued five profit warnings over 2014 and 2015, reiterated in a May 5 update to shareholders that it still expects to improve on 2015’s +£160 million/+$237 million profit before tax by around +£50 million in 2016, which would be in line with previous guidance. However, (CEO), Warren East conceded that the first half of 2016 will produce only breakeven results. The full-year 2016 performance “will be significantly weighted towards the second half” of the year, he said. East said the company remains on track to achieve -£30 million to -£50 million in annual cost savings in 2016.
Bloomberg reported that East told reporters following the company’s May 5 annual general meeting that (RRC), which is in the midst of a restructuring, is in the process of informing employees of job cut plans and ultimately will reduce its management ranks by -400 to -500 employees. That would mean -200 to -300 more management job cuts over the -200 already announced.
News Item A-2: "Rolls-Royce Delivers 1st Trent 900 Engines for Emirates A380" by (ATW) Linda Blachly, May 11, 2016
Rolls-Royce (RRC) has delivered the first shipset of (Trent 900)s to Airbus (EDS) for the first A380s on order by Dubai-based Emirates Airline (EAD).
According to a company statement, the (Trent 900) engines left the (RRC) site at Derby, UK, where they were assembled for Airbus (EDS) in Toulouse, France, where they will be fitted to an A380 aircraft.
(RRC) is providing (Trent 900) engines and TotalCare service for 50 Emirates A380s, the first of which will enter service later this year. (EAD) recently confirmed it will operate an additional two A380s that will be powered by the same engine with TotalCare service support,” (RRC) said.
The Emirates (EAD) order was announced last year. With the order, (RRC) said it has “now secured more than >50% market share on the aircraft.
According to (RRC), the (Trent 900) powered the first commercial A380 in 2007 and is now used by eight operators on more than >70 aircraft, having logged nearly five million in-service flight hours. The (Trent 900) is assembled in both Derby and Singapore.
July 2016: News Item A-1: (GKN) Aerospace has extended its agreement with Rolls-Royce (RRC) to design and supply intermediate compressor cases (ICC) for the (Trent XWB-84) engine.
The multi-million dollar agreement extends the existing risk and revenue sharing partnership between (RRC) and (GKN), whose engine systems business has supplied the (ICC) for the (Trent) since the beginning of the (Trent XWB-84) engine program.
(GKN) said it has used up to date design methodologies and fabrication technologies including additive manufacturing processes and new welding techniques to create the (ICC).
First deliveries of the (ICC) to (RRC) for the engine are scheduled for early 2018.
This (Trent XWB-84) will power the A350-900 family aircraft due to enter into service in early 2020.
News Item A-2: Rolls-Royce (RRC) announced two major engine orders at the Farnborough Air Show valued at $900 million each: Bahrain-based Gulf Air (GUL) chose the (Trent 1000) to power 16 Boeing 787-9 Dreamliners and UK-based Virgin Atlantic (VAA)’s 12 A350-1000s will be powered by (Trent XWB-97) engines (the XWB is the exclusive engine on the A350).
News Item A-3: "(HNA) Takes Majority Stake in SR Technics."
China’s (HNA) Aviation has agreed to buy a majority stake in SR Technics (SWS) from sole shareholder, Mubadala.
The deal was announced on July 15 and will see (HNA) take an 80% stake in the Swiss Maintenance Repair & Overhaul (MRO) organization, which will remain a standalone operation.
Mubadala, Abu Dhabi’s investment and development company, which has held its majority stake in SR Technics (SWS) for more than >6 years, will retain a 20% share of (SWS).
Chen Wenli, Vice Chairman of the (HNA) Group, said: “(HNA) fully supports the existing long-term strategy and executive management team, and will be a reliable partner to support SR Technics (SWS)’ focus on continuing to deliver value to its existing customers, and expanding its global (MRO) business.”
While Chinese companies buying up overseas firms has become a common occurrence in the past 10 years, (HNA) has had its eyes on Switzerland lately, with the company also set to snap up Swiss flight services specialist, Gategroup for $1.5 billion in addition to SR Technics (SWS).
Further (HNA) acquisitions in the aviation sector could be on the cards, with Group Chairman, Chen Feng telling the "Financial Times" earlier in July that he is looking to do more takeovers despite China’s economy stalling in the past year.
While the purpose of (HNA)’s acquisition is obvious, one has to ponder why Abu Dhabi government-backed Mubadala is selling its majority share in SR Technics (SWS). (SWS) has performed strongly in recent years and possesses a strong airline customer base. This was further buoyed by last year's $150 million contract to provide component support for Etihad (EHD)’s fleet of 787 airplanes.
According to "Bloomberg," Mubadala’s decision to relinquish its majority stake and become a minority shareholder could lie in the global oil price slump, which reportedly led to the state investment group starting proceedings to offload its Swiss asset in February.
But considering that Mubadala unveiled a partnership with Rolls-Royce (RRC) to establish an approved maintenance center in Abu Dhabi for the (Trent XWB) engine maintenance as part of an existing, long-term aerospace strategy for the (UAE) state, its (MRO) activities are clearly far from done.
September 2016: "Rolls-Royce Appoints New (COO)" by Airline Daily
Tony Osborne, firstname.lastname@example.org
Engine manufacturer Rolls-Royce (RRC) has appointed Simon Kirby as the new Chief Operating Officer (COO) in line with plans following a shakeup of senior management announced last December.
Simon Kirby, currently the (CEO) of the UK’s High Speed 2 (HS2) railway network project, will join (RRC) in the coming months. (RRC) announced the creation of the (COO) position as part of the introduction of a new management structure in (RRC) introduced by (CEO) Warren East to simplify the company’s structure. That ends the divisional structure of Aerospace & Land & Sea, and introduces five businesses: Civil Aerospace, Defense Aerospace, Marine, Nuclear, and Power Systems.
(RRC) is partway through the restructuring process that it hopes will take £150 to 200 million/$200 to 266 million out of (RRC)’s £4 billion in fixed costs.
(RRC) is also addressing concerns from investors about the analysis of its “opaque” civil engine business. Kirby’s position would “drive operational and financial performance” and “take responsibility for delivering the group-wide transformation agenda.”
“[Kirby’s] track record in delivering complex major programs is highly relevant to Rolls-Royce (RRC), and will strengthen management
capability ahead of a period of significant expansion,” East said. “We are doubling our production of large civil-aircraft engines and substantially growing our nuclear division, while at the same time driving a transformation program that will make us a more resilient and cash-generative business,” East said. “Achieving operational excellence across the group is essential, and [Kirby] has a critical role to play. I am looking forward to working closely with him,” East added.
Kirby’s role in (HS2) has been controversial, particularly his 750,000 pounds pay package, which made him one of the UK’s most highly paid civil servants. The (HS2) program, which will build a high-speed railway line between London and Birmingham, England, by 2026, is already over budget and been subjected to a number of delays and controversy about its siting.
November 2016: News Item A-1: "Rolls-Royce Increases Ceramic Composites Research" by (ATW) Alan Dron email@example.com, November 3, 2016.
UK engine manufacturer Rolls-Royce (RRC) is to increase its presence in California with a $30 million investment in a new 62,000 sq ft facility for research and development of ceramic matrix composite (CMC) materials and processes for future engine components.
Derby-based Rolls-Royce (RRC) bought privately owned company Hyper-Therm High-Temperature Composites in Huntington Beach, in May 2013; the new premises will consist of a (CMC) technology hub in nearby Cypress.
“The development of lighter, stronger, composite fiber components is just part of our commitment to continuously improve the performance of our products by focusing on lowering fuel consumption, emissions and noise,” (RRC) North America President & (CEO) Marion Blakey said.
“The team here in Cypress will be dedicated to seeing the commercial application of these technologies that will soon be adopted into advanced manufacturing production methods for gas turbine components.”
(CMC)s offer several advantages for industries such as aerospace that have demanding thermal and mechanical requirements. The materials deliver the high-temperature capability of ceramics with the strength and reliability required for gas turbine engine applications, but weigh less than current alloys. (CMC) components are lighter and require less cooling compared to traditional nickel-based components.
(CMC)s are one of “several technologies we are developing across (RRC) that will contribute to a significant reduction in fuel consumption,” Executive VP Turbines, Civil Aerospace, Andy Greasley added at a dedication ceremony at the new site.
The facility will develop production-ready manufacturing processes and produce components for use in engine test programs. From there, manufacturing processes refined in the Cypress facility will be applied to a future dedicated production facility.
News Item A-2: Rolls-Royce (RRC) said it is making “significant progress” in its transformation program to improve (RRC)’s financial outlook, against a background of mixed markets. “We have made significant progress over the last 12 months implementing the findings of our operating review, including key changes to the management and structure of our company,” (CEO) Warren East said. “At the same time, we are taking actions that are adding pace and simplicity to our processes.
“Together with my new team, our focus is turning towards the Group’s long-term goals. Over the next few months we will be evaluating our strengths and investment opportunities, to define an appropriate vision for the business and the best way we can deliver sustainable shareholder value.” Significant changes have been made to the senior management headcount and the underlying cost base, he said.
He added that the Group’s transformation program was well on track, with cost savings now expected to be at the top end of the -£150 to -£200 million/-$186 to -$248 million target range.
The 2016 outlook was unchanged for revenue, profit and cash. In 2017, the near-term market outlook remained mixed, although the Group’s long-term order book was at near record levels. Trading was in line with overall expectations, but some market conditions remained challenging. Demand for large engines remained strong, reflecting the strength of the (Trent XWB) order backlog. However, other Group activities (small engines for executive aircraft, power systems for industrial purposes and the marine business) remained weak. “We have made steady progress in 2016 to date, delivering a ramp-up in large engine production and implementing the 1st stage of our transformation program. Overall, we remain comfortable that our expectations for profit and free cash flow remain achievable.”
Foreign exchange benefits from weaker sterling and life-cycle cost reductions were expected to more than offset higher engineering and program costs in the Civil Aerospace division, he said.
News Item A-3: "Emirates Says Rolls-Royce's A380 Engines Not Up to Standard" by Andrea Rothman & Benjamin D Katz, "Bloomberg News" November 18, 2016.
Emirates (EAD), the world's biggest long-haul airline, said it's unhappy with performance shortfalls afflicting US$6.1 billion's worth of Rolls-Royce Holdings (RRC) engines ordered to power a batch of 50 Airbus Group SE A380 superjumbos.
Feedback on the (Trent 900) powerplants indicates "technical issues" that need to be resolved before the 1st plane is delivered to (EAD) next month, Tim Clark (EAD) President, said in Frankfurt. "We have a new engine coming on and there are some issues with that at the moment," Clark said. "We want the engines as promised in the contract."
(EAD) last year ordered 217 (Trent 900)s (sufficient to power the 50 4-engine A380s, plus spares) after previously purchasing (GP7000) powerplants from an alliance of General Electric Company and Pratt & Whitney for its first 90 A380 superjumbos. The deal with (RRC) included unspecified "quality improvements."
Clark said (EAD) will "hopefully" still take the 1st Rolls-Royce (RRC) powered plane on December 2 as planned, adding that talks are underway with (RRC) on resolving the performance problems and whether it should compensate the airline.
London-based Rolls-Royce (RRC) said in an email that it is "working with (EAD) and Airbus (EDS) to meet the planned entry into service of the (Trent)-powered A380 within the Emirates (EAD) fleet."
Clark said that officially deferring delivery of the planes isn't an option since doing so would impact the model's entire supply chain. (EAD) is due to take 25 (RRC)-powered A380s between now and 2019, +25 more from 2021 on.
While the (Trent 900) had its 1st test flight in 2004 and has a greater spread of A380 operators than the (GE) - Pratt (PRW) model, it had previously been excluded from the world's largest superjumbo fleet. (EAD) switched supplier on the understanding that Rolls (RRC) would help develop an upgraded and re-engined "Neo" version to help pare operating costs and extend the model's lifespan.
A lack of interest in buying more double-deckers among other carriers has effectively killed off that plan, and Airbus (EDS) is now planning to slow production to just 1 plane per month in 2018 to eke out the backlog and keep its options open in case demand revives.
(EAD) took delivery of its 85th A380 this month and operates almost 250 aircraft in total, all of them either superjumbos or Boeing 777s.
December 2016: Rolls-Royce (RRC) secured new $180 million TotalCare service contract from South African Airways (SAA) for (Trent 700)s for +5 more Airbus A330s, extending the (SAA) program to cover 11 total aircraft.
January 2017: UK aero-engine manufacturer Rolls-Royce (RRC) has finalized a series of agreements with authorities in 3 countries, at a cost of £671 million/$808.5 million, related to a bribery and corruption investigation.
In a stock market disclosure released January 17, (RRC) said it had finalized a deferred prosecution agreement (DPA) with the UK Serious Fraud Office (SFO) and the USA Department of Justice (DOJ), as well as a “leniency agreement” with Brazil’s Ministério Público Federal (MPF).
Rolls-Royce (RRC) will pay the (SFO) £497.2 million, plus interest, over a period of up to 5 years, as well as a payment to reflect the (SFO)’s costs. It will also hand the (DOJ) payments totaling almost $170 million and the (MPF) >$25 million. “These are voluntary agreements, which result in the suspension of prosecution provided that the company fulfils certain requirements, including the payment of a financial penalty. The agreements will result in the total payment of £671 million,” the company said.
The move follows a bribery and corruption investigation involving intermediaries in several overseas markets, which was 1st flagged in 2012. “The behavior uncovered in the course of the investigations by the Serious Fraud Office and other authorities is completely unacceptable and we apologize unreservedly for it. This was unworthy of everything which (RRC) stands for, and that our people, customers, investors and partners rightly expect from us. “The past practices that have been uncovered do not reflect the manner in which (RRC) does business today. We now conduct ourselves in a fundamentally different way. We have zero tolerance of business misconduct of any sort,” Rolls-Royce (RRC) (CEO) Warren East said.
(RRC) said it has since rolled out an “extensive action program” to ensure ethics and compliance. This plan includes:
* Setting clear standards for the behaviors we expect of our people and those we do business with;
* Implementing revised and new ethics and compliance policies covering areas including anti-bribery and corruption, offset, gifts and hospitality and lobbying;
* Recruiting a senior team of ethics and compliance experts;
* Training ethics and compliance specialists across our business and introducing an extensive training program for employees;
* Encouraging employees to report any concerns and creating new channels including a 24-hour Ethics Line available worldwide; and
* Reducing dramatically the number of intermediaries that we use across the world and ensuring that those advisers that we do retain meet our high ethical and compliance standards and understand exactly what is expected of them.
February 2017: Rolls-Royce Holdings reported +£915 million/+$1.1 billion in underlying profit before finance charges and tax for the full-year 2016, down -45% year-over-year, on underlying revenues of £13.8 billion, down -2%.
The UK-based group’s total order book for the year was +£79.8 billion, up +£3.3 billion on the same period last year, led by the group’s civil aerospace division, which reported an order intake of +£14.1 billion in 2016, a +£1.3 billion increase over 2015. Civil aerospace’s order book closed at £71.4 billion, up +£4.4 billion from 2015, which the company said includes a +£2.1 billion benefit from a 5% decrease in its long-term foreign exchange rate.
During the year, civil aerospace sales included a $2.7 billion order from Norwegian (NWG) for (Trent 1000) engines; a $1.2 billion order from Garuda Indonesia (GIA) for (Trent 7000) engines and a $900 million order from Virgin Atlantic (VAA) for the (Trent XWB).
For the full year, Rolls-Royce (RRC)’s civil aerospace division underlying revenue grew +2% to £7.1 billion, but underlying profit before tax and finance charges dropped -55% to £367 million.
The company also reported a +£671 million charge for financial penalties related to settlement agreements with investigating authorities over “historic bribery and corruption involving intermediaries in a number of overseas markets.”
“[In 2016] we accelerated the transformation of Rolls-Royce (RRC). We increased our large engine output by +15% and made good technical progress in the final stages of the development of the 3 new large engines due to enter service over the next 12 months,” (CEO) Warren East said. “Rebuilding trust and confidence in the Group and its long-term prospects remains a key priority for the management team,” East said. “[For 2017] year-on-year incremental progress will be modest; our medium-term trajectory for revenue, profit and free cash flow remains unchanged [in the long term], the roll-out of new engines, led in particular by the (Trent XWB), 1000 and 7000, together with a growing aftermarket, is expected to drive significant revenue growth over the coming 10 years as we build toward a +50% plus share of the installed wide body passenger market.”
The Group reported free cash inflow in 2016 of £100 million, compared to £179 million in 2015. The Group is targeting its 2017 free cash flow to be similar to 2016. The group’s capital expenditure for 2017 is expected to be approximately £600 million, compared to £626 million in 2016.
May 2017: "Rolls-Royce Begins UltraFan Gearbox High-power Testing"
by (ATW) Victoria Moores firstname.lastname@example.org, May 25, 2017.
Rolls-Royce (RRC) has performed the 1st power runs of the gearbox for its new UltraFan engine at a facility in Germany. (RRC) described the gearbox as a vital component of the UltraFan’s design and said this is a “significant step” in the engine’s development.
In 2016, (RRC) put the gearbox through its paces on an attitude rig, designed to simulate flight conditions such as takeoff, climb, banking, descent and landing. Building on this, the power runs have begun at the (RRC) Power Gearbox (PGB) facility in Dahlewitz, Germany. Here the gearbox will ultimately run at up to 100,000 horsepower (the equivalent of >100 Formula 1 cars. “We are continuing to deliver on the UltraFan program and this latest achievement marks another milestone. Having successfully started tests on the attitude rig last year, we are now starting power-rig tests,” (RRC) Chief Engineer & Head of Program UltraFan Technologies, Civil Aerospace, Mike Whitehead said.
UltraFan is scheduled to enter the market in 2025 and will be scalable for wide body or narrow body aircraft. The engine will offer a +25% fuel-efficiency improvement compared with 1st generation (RRC) (Trent) engines, because of the gearbox, high-bypass ratio, lighter-weight carbon/titanium fan blades, composite casing and heat-resistant ceramic matrix composites (CMCs) that require less cooling air.
(RRC) has partnered with Liebherr-Aerospace on the power gearbox technology. Under the cooperation, (RRC) is leading design definition and integration of the power gearbox, as well as testing activities.
July 2017: News Item A-1: Thai Airways International (TII) is grounding some of its Boeing 787-8s because of delays in fixing engine problems also affecting other operators of Rolls-Royce (RRC) (Trent 1000) engines.
(TII), the Thai flag carrier has not specified how long the 787-9s will be parked, but said the engine spare parts issues will be “alleviated” in August. It expects things to “return to normal” in September. Local media has reported that 4 of (TII)’s 6 787s have been grounded.
News Item A-2: See video on Rolls Royce Digital Services:
August 2017: Rolls-Royce (RRC) has been granted full-flight certification by the European Aviation Safety Agency (EASA) for its Boeing 787 (Trent 1000 TEN) engine.
The (Trent 1000 TEN), which will power all Boeing 787 variants, has improved thrust and efficiency because of cross-over technologies from the Airbus A350’s (Trent XWB) powerplant and (RRC)’s Advance turbofan (a new engine program that was announced in 2014).
“This marks another critical step in our journey towards delivering additional capability and new technology for the Boeing 787,” Rolls-Royce (RRC) Chief Engineer for (Trent 1000) Dave Taylor said.
The certification came as (RRC) delivered its 1st set of production engines to Boeing (TBC) in Seattle, ready for entry into service (EIS) later this year.
September 2018: "Analysis: The Dilemma of the High-tech Aero-engine"
by (ATA) Editor, Karen Walker, ATWOnline, September 24, 2018.
The irony is woefully obvious. Aero engines developed for the newest generation of airliners are designed and built to be super fuel efficient, quiet and environmentally clean. But the Rolls-Royce (RRC) (Trent 1000), which powers around 45% of the world wide Boeing 787 fleet, has been brought down, in part at least, by something as common as air pollution.
A large portion of (RRC) (Trent)-powered 787s have been affected by the engine reliability issues. Dozens of 787s have been parked at airports around the world, their engines removed to be inspected and modified. Air China (BEJ), Air New Zealand (ANZ), British Airways (BAB) and Virgin Atlantic (VAA) are among those affected. (ANZ) has suspended routes from its international network partly because of airplane shortages caused by the issue after being forced to make significant schedule changes earlier to accommodate the inspections and repairs mandated for its 787-9s. Many other airlines are also experiencing schedule disruption because of the engine issues.
The baseline problem, (RRC) discovered, was caused by “hot corrosion” in which the thermal barrier coating on the (IP) turbine blades was stripped away prematurely, exposing the underlying material to low cycle fatigue. Analysis of the phenomena indicated it was tied primarily to operations in and around airports in the Asia-Pacific region with high atmospheric sulfur concentrations. “It’s fundamentally pollution around big cities that have ‘dirty’ industries,” Rolls Large Engines Chief Engineer Frank Haselbach explained.
Adding to (RRC)’s challenges, fatigue cracks were also discovered in the (Trent)s, prompting an (EASA) engine-inspection directive issued in tandem with an airplane-level (FAA) order limiting extended range twin engine operations (ETOPS) flights to 140 minutes from the nearest suitable airport for certain airplanes, reduced from the 787’s normal 330 minutes. The order applied to (Package C)-powered airplanes with at least 1 engine having accumulated 300 or more cycles since new or the last (IP) compressor blade overhaul.
(RRC) said in mid-September it was completing development of the final element of a suite of modifications to fix the issues and was confident the compressor blade redesign would be cleared for introduction in the next few months. But the cost to (RRC) and to its customers, the affected airlines, is in the multi-millions of dollars.
None of (RRC)’s engine manufacturer rivals (the (GE) (GEnx) is the alternative engine option for the 787) are crowing, however. Wherever you look in new aero-engine development, there are cases of in-service problems.
The other most notable problem has been the multiple in-service issues with the Pratt & Whitney (PRW) (PW1000G) geared turbofan (GTF) that powers Airbus A320neos and A220s. This year, a problem surfaced with that engine’s knife edge seal. This impacted around 100 engines and cost (PRW) some $50 million. The seal was introduced into new production engines in mid-2017 to eliminate an inspection requirement, but problems began to emerge within weeks of entry-into-service on new A320neos. Fractures caused rotor vibration and stalling in 4 engines, 2 of which resulted in in-flight shutdowns and 2 in rejected takeoffs.
The incidents led (PRW) and Airbus to issue urgent recommendations to affected A320neo operators to make sure aircraft had no >1 affected engine installed and banning (ETOPS) flights. By the time the problem became apparent, 43 engines had entered service on 32 airplanes.
(PRW) and (RRC) each identified the problems, found the fixes and have worked round the clock with their customers to get airplanes back in the air. What seems to be happening is the engine manufacturers are being caught by problems in service that were not seen in development; even though they have all significantly increased the amount of development testing they do to ensure maturity at entry into service. The (Trent) corrosion issue is one that had not been seen before, presumably because the materials used are different, so it was not anticipated.
The cracking issue also seems to show how even small changes in design can cause problems. In the (GTF) case, (PRW) changed the knife seal (a seemingly miniscule component) and suddenly started seeing problems. It also seems that these new engines are so pushing the boundaries of technology, that the unforeseen becomes more probable. To be fair to the manufacturers, the airlines (and, indeed, the regulatory and national authorities) insist on higher and higher emissions standards coupled with better and better fuel efficiencies. So the engine manufacturers respond with technology. They say they will increase development testing even more for their next engines to ensure service entry mature, but it will be hard to guarantee there will be no new problems.
After all, if polluted city air was not foreseen as a corrosion factor by engineers who specialize in designing eco-friendly aero-engines, what else is out there to surprise the industry?
— Guy Norris and Graham Warwick contributed to this article.
November 2017: Rolls Royce Holdings is joining Airbus (EDS) and Siemens in their quest to develop a 100 seat hybrid electric aircraft, giving Rolls Royce (RRC) a seat at the table of a potential promising aviation technology.
(RRC) is tasked with helping develop a 2 megawatt electric drive for the aircraft. The goal of Siemens and Airbus (EDS) is to produce a single-aisle aircraft with a 20 to 40 megawatt electric drive.
December 2017: News Item A-1: "Rolls-Royce Wins Approval for (ITP) Acquisition" by Victoria Moores email@example.com, December 11, 2017.
Rolls-Royce (RRC) has secured the authorizations it needs to acquire the remaining 53.1% of Industria de Turbo Propulsores (ITP) from Spanish engineering and construction firm Sener Grupo de Ingeniería.
(ITP) is a joint venture (JV) between (RRC) (46.9%) and Sener (53.1%), which was created in 1989. The (JV) supplies turbines for (RRC)’s civil engines and is active on the UltraFan future engine program, which is slated to enter service from 2025.
Under a shareholder’s agreement signed in 2003, during a certain period year, Sener held a put option which gave it the right (but not the obligation) to sell its shares in (ITP) to (RRC) at a specified price. Sener exercised that option in 2016, but the companies have been waiting on Spanish clearance for the deal that has now been secured. “Approval from the authorities in Spain paves the way for (RRC) to conclude the acquisition,” (RRC) said.
(RRC) is paying €720 million/$847.3 million for the 53.1% shareholding, which will be paid in 8 installments of cash (or (RRC) shares) over a 2-year period following completion.
Completion is expected before the end of 2017 and (RRC) has elected to make the 1st payment in shares. Up to half the purchase price can be settled in shares. “The decision on the form of subsequent payments will be determined as each individual payment falls due,” (RRC) said.
Bilbao-headquartered (ITP) employs >3,000 people and participates on all of (RRC)’s existing (Trent) programs through risk and revenue sharing agreements. Its activities include aircraft engine design, research, development and manufacturing, as assembly and testing.
Outside of Spain, (ITP) has facilities in India, Malta, Mexico, the UK and the USA.
News Item A-2: Rolls-Royce (RRC) has established (R2) Data Labs organization to accelerate data innovation.
January 2019: "Rolls-Royce Announces New USA Facility" by Alan Dron (firstname.lastname@example.org) January 12, 2018.
UK engine manufacturer Rolls-Royce (RRC) will operate a jet engine testbed at Alliance Airport in Fort Worth, Texas.
(RRC) has signed a lease to take over the 440,000 sq ft former Texas Aero Engine Services LLC (TAESL) facility, of which the testbed is a part.
(RRC) also recently announced the development of a new testbed facility at its headquarters site in Derby, UK, as part of an ongoing commitment to support the growth in delivery of engines expected over the coming years.
With several new models of its (Trent) engine either having recently entered airline service, or about to do so this year, the test bed will be used to carry out endurance test runs for the engines.
(RRC)’s (Trent 1000) TEN entered service in November 2017, powering the Boeing 787, while the (Trent XWB-97) and (Trent 7000) will enter service this year on the Airbus A350-1000 and Airbus A330neo, respectively.
By the early 2020s, (RRC) said 50% of modern twin-aisle airliners will be powered by variants in the (Trent) range. “This additional test bed helps us improve the capability and flexibility of our global test network and will provide us with additional capability to run endurance analysis, accruing valuable data on our latest engine programs,” (RRC)’s Head of Experimental Civil Aerospace Gareth Hedicker said.
Until its closure in early 2016, (TAESL) was a maintenance repair and overhaul (MRO) facility run as a 50-50 joint venture between American Airlines (AAL) and Rolls-Royce (RRC). Having signed a lease with the property owner, the City of Fort Worth, Rolls-Royce (RRC) expects the test bed to be operational in a few months with approximately a dozen employees.
(RRC) is reviewing a number of options for the remaining space at this facility, including sub-letting it to another company requiring warehouse space and proximity to the Fort Worth Alliance Texas Airport.
March 2018: News Item A-1: Rolls-Royce (RRC) has appointed Tom Bell as President & (CEO) of Rolls-Royce (RRC) North America, a post he will hold alongside his current position as President Defense. The appointment follows the decision of Marion Blakey to retire at the end of June after serving a 3-year term.
(CEO) Warren East said, “Our business in North America has gone from strength to strength and serves some of our largest customers. To support our ambitions in the region, we have made significant investments including at our facility in Indianapolis, where we are currently undertaking the largest single investment that Rolls-Royce (RRC) has made in the USA since we acquired the former Allison Engine Company >20 years ago.”
News Item A-2: Rolls-Royce (RRC) has started work on its new testbed facility in Derby, UK. The building was announced in June 2017 as part of a wider £150 million/$211 million investment in UK aerospace facilities.
Expected to be commissioned in 2020, it will provide additional capacity as the civil aerospace business continues to ramp-up engine production. It comes just 2 months after the engine maker unveiled a testbed facility in the USA.
The new facility be able to test a range of engines, including the (Trent XWB) and the (Trent 1000). The building will also serve as a base for testing UltraFan, (RRC)’s engine for the next generation of airliners.
The new testbed will set conditions and obtain evidence from a wide variety of test activities, such as water ingestion and endurance testing. It will also benefit from the latest advances in test equipment, including new x-ray capabilities.
The testbed itself will have an internal area of 7,500 sq m/80,729 sq ft and will be surrounded by 2 concrete walls measuring up to 1.7 m thick.
The groundbreaking “comes at a pivotal moment for our civil aerospace business as we ramp up production to record levels and look forward to completing a hat-trick of new engine launches, with the Trent 7000 set to enter service later this year,” (RRC) President Civil Aerospace Chris Cholerton said at the ceremony.
Derby is the home of the design and development of a trio of new Rolls-Royce (RRC) engines: the (Trent 1000 TEN), which powers the Boeing 787 Dreamliner family and entered service in November 2017; the (Trent XWB-97), which powers the Airbus A350-1000 and entered service in February 2018; and the (Trent 7000), which will power the Airbus A330neo when it enters service later this year.
The new testbed supports the IntelligentEngine vision recently outlined by (RRC) by bringing together the latest in digital and physical testing technology. In addition to designing, testing, and maintaining engines in the digital realm, the IntelligentEngine vision sets out a future where an engine will be increasingly connected, contextually aware and comprehending, starting from its time on the test bed.
April 2018: Rolls-Royce (RRC) has warned airlines that additional checks of its (Trent 1000) engine powering the Boeing 787 will be needed to resolve ongoing issues with the engine’s compressor. (RRC) said it wants to carry out additional inspections, on top of those previously planned to better understand the durability of the Package C compressor of the (Trent 1000), which is featured on nearly 200 787s.
"Rolls Royce Engine Blade Fault Severely Curtails 787 Extended Twin engine OPerationS (ETOPS)" by Guy Norris (ATW) Plus, April 16, 2018.
Significantly reduced Extended Twin engine OPerationS (ETOPS) and performance limits plus a new set of mandatory inspections for operators of Rolls-Royce (RRC) (Trent 1000) Package C-powered Boeing 787s are set to cause further disruption to a fleet already under strain from earlier problems and replacements. In addition, pressures on (RRC)’s test and overhaul capacity caused by tackling problems associated with the earlier generation (Trent 1000) family have already indirectly triggered delays to deliveries.
May 2018: Rolls-Royce (RRC) is accelerating the process of inspections and the development of a permanent fix for the issues impacting its (Trent 1000) Package C engine powering the Boeing 787.
The issues, which have caused wide disruption to several 787 operators and forced the storage of airplanes in an engine less state, has prompted (RRC) to increase maintenance capacity to deal with a new inspection regime, announced in April, and develop a more permanent fix for the problem.
June 2016: Rolls-Royce (RRC) is widening the scope of checks on the (Trent 1000) family of engines after issues were found in other derivatives of the Boeing 787 engine.
August 2019: News Item A-1: Rolls-Royce (RRC) has taken a £554 million/$729 million hit over problems with the (Trent 1000) engine, which powers the Boeing 787. The charge (revealed in (RRC)’s half-yearly results on August 2) contributed to a pre-tax loss of -£1.3 billion in the 6 months ended June 30, reversed from a profit of +£1.4 billion during the (1H) 2017. Rolls-Royce (RRC) (CEO) Warren East described the charge as “abnormal.”
September 2018: News Item A-1: Continuing problems with Rolls-Royce (RRC) (Trent 1000) engines on its fleet of Boeing 787s has forced British Airways (BAB) to contract leased-in help to maintain its schedules.
(BAB) plans to use an Air Belgium (ABM) Airbus A340-300 on its daily London Heathrow to Abu Dhabi service from September 15 to October 4. (BAB) has already used the Belgian startup for a small number of flights from London to Cairo earlier this month.
(BAB)’s 787 fleet is undergoing precautionary inspections in light of durability problems in the compressor of the (Trent 1000) Package C engines. These have required additional inspections, which has forced airlines to ground 787s using this model of engine while the checks take place. “We’re doing everything we can to make sure our customers travel as planned, in light of continuing issues with (RRC) (Trent 1000) engines, which are affecting many airlines around the world.”
“In order to fly as many customers as possible on their original dates of travel, we have leased an aircraft from (ABM). We are in touch with customers who are affected to offer them a range of options if they don't wish to continue with their booking.”
(ABM) began flying earlier this year and has a fleet of 4 A340-300s.
In recent months, (BAB) has leased aircraft from fellow Oneworld (ONW) Alliance carrier Qatar Airways (QTA) to help fill its shortfall in aircraft. However, given the 15-month diplomatic stand-off between (QTA) and the (UAE) (as well as Saudi Arabia, Bahrain and Egypt), Qatari aircraft would not have been able to operate the service to Abu Dhabi, which is the federal capital of the (UAE).
News Item A-2: Air pollution, especially in large Asian cities, is believed to be 1 cause of reliability issues that have affected a large portion of the Rolls-Royce (RRC) (Trent 1000)-powered Boeing 787 fleet. But (RRC) said it is close to fielding a final fix to the problems. Dozens of 787s have been sitting engine-less at airports around the world while the (Trent 1000)s are inspected and modified. Air China (BEJ), Air New Zealand (ANZ), British Airways (BAB) and Virgin Atlantic (VAA) are among those affected.
October 2018: News Item A-1: "Africa’s 1st Rolls-Royce (RRC) Lease Engine Storage Facility Opens - The facility is located at South African Airways (SAA) Technical’s Johannesburg base" by James Pozzi (MRO-Network.com), October 04, 2018.
Rolls-Royce (RRC) has opened a new lease engine storage location in Johannesburg, South Africa which will target greater aircraft availability across the engine maker’s aftermarket network. Based at South African Airways Technical (SAAT) premises close to the city’s Oliver Tambo International Airport, the center will store a mix of Rolls-Royce (RRC) engines used by African operators powering commercial aircraft and business jets.
According to a news release, the center is certified to store engines including the Tay; BR710; BR715; RB211-524; RB211-535; Trent 500; Trent 700; Trent 800; Trent 900; Trent 1000; Trent XWB and Trent 7000, which is due to enter into service this year powering the A330neo.
(RRC) has provided technical training to (SAAT) staff to enable them to carry out work on the engines in storage. Ultimately, (SAAT) wants (SAAT)’s mechanics to perform numerous inspection and on-wing services to (RRC) engine operators across Africa.
“The opening of this facility marks the start of a journey that will see (SAAT) play an expanding role in our development of availability services across Africa as it increases its capability,” said Kevin Evans, (RRC)’s VP Customers Africa.
News Item A-2: Rolls-Royce (RRC) has acknowledged it has fallen behind on (Trent 7000) shipments to Airbus (EDS) that will cause knock-on delays to A330neo deliveries later this year and into 2019. News of the (Trent 7000) setback comes on the heels of fresh complaints from operators affected by extended (Trent 1000)-related groundings of Boeing 787s. (RRC) shares value lost as much as 14% on the news and at 1 point declined so precipitously that trading was suspended temporarily.
January 2019: UK Aero-engine manufacturer Rolls-Royce (RRC) said it has certified a redesigned intermediate pressure (IP) compressor blade for Package C variants of the (Trent 1000) engine that powers the Boeing 787. Both the (FAA) and (EASA) have certified the redesigned blade and bulletins were issued to 787 operators by (RRC) and Boeing in late December 2018, (RRC) announced January 10.
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Rolls-Royce (RRC) is a major world engine manufacturer.
Click below for photos:
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IAN DAVIS, CHAIRMAN (2013-05).
WARREN EAST, CHIEF EXECUTIVE OFFICER (CEO) (2015-07).
ERIC SCHULZ, PRESIDENT CIVIL AEROSPACE (2016-01).
TONY WOOD, PRESIDENT AEROSPACE DIVISION (2013-05).
TOM BELL, PRESIDENT & (CEO) NORTH AMERICA & PRESIDENT DEFENSE (2018-02).
MS MARION BLAKEY, PRESIDENT & (CEO) NORTH AMERICA (2015-05) TO RETIRE AFTER 3 YEAR TERM (2018-05).
Marion headed the USA Aerospace Industries Association (AIA), which represents the interests of USA aerospace manufacturers, since November 2007. She previously has been the (FAA) Administrator and Chairperson of the USA National Transportation Safety Board (NTSB).
RUSSELL BUXTON, PRESIDENT CIVIL LARGE ENGINES FLEET.
PAUL CRAIG, PRESIDENT DEFENSE CUSTOMER SERVICES.
COLIN SMITH, GROUP PRESIDENT ENGINEERING & TECHNOLOGY (2016-01).
DAVID SMITH, CHIEF FINANCIAL OFFICER (CFO).
SIMON KIRBY, CHIEF OPERATING OFFICER (COO) (2016-09).
MIKE WHITEHEAD, CHIEF ENGINEER & HEAD ULTRAFAN TECHNOLOGIES ULTRAFAN, CIVIL AEROSPACE.
DAVE TAYLOR, CHIEF ENGINEER (RRC) (TRENT 1000).
NICK DEVALL, CHIEF COMMERCIAL OFFICER (CCO) CIVIL AEROSPACE.
DOMINIC HORWOOD, CHIEF CUSTOMER OFFICER, CIVIL LARGE ENGINES.
ANDY GREASLEY, EXECUTIVE VP TURBINES, CIVIL AEROSPACE.
RICHARD GOODHEAD, SENIOR VP STRATEGY & MARKETING (CIVIL LARGE ENGINES).
PHIL HARRIS, SENIOR VP CIVIL AEROSPACE.
PETER DUNSFORD, SENIOR VP CUSTOMERS, CIVIL AEROSPACE.
KEVIN EVANS, VP CUSTOMERS AFRICA.
GARETH HEDICKER, HEAD EXPERIMENTAL CIVIL AEROSPACE.
ALEX DULEWICZ, HEAD MARKETING SERVICES.
JOHN GRIFFITHS, PROGRAM DIRECTOR (TRENT 1000).
CHRIS YOUNG, PROGRAM DIRECTOR (TRENT XWB).
JONATHAN ASHERSON, REGIONAL DIRECTOR (ASEAN) & PACIFIC.
SCOTT WOOD, CUSTOMER MARKETING DIRECTOR ASIA-PACIFIC.
Based in Derby, Scott Wood is Customer Marketing Director covering the Asia Pacific Region. In his role, Scott is responsible for marketing Rolls-Royce (RRC) Civil Aerospace products and services throughout the Asia Pacific region, promoting and providing analysis on the value and competitiveness of (RRC) aero engine products and services directly with airline customers and Lessors within the region. He works closely with the (RRC) Customer Service Center based in Singapore to establish our regional marketing strategy and directly supporting Sales Activity within the region.
For the last 10 years Scott has worked as a Customer Services Manager supporting airline operations and delivering all the elements of "TotalCare" directly to airline customers, and more recently was responsible for the flawless entry into service of (RRC)'s latest (Trent) engine, the (Trent XWB) for the Airbus A350.
CHRIS BARKEY, GROUP DIRECTOR ENGINEERING & TECHNOLOGY, CIVIL LARGE ENGINES.
PETER PRICE, DIRECTOR ENGINEERING & TECHNOLOGY CIVIL AEROSPACE.
BICKY BANGU, DIRECTOR TRENT ENGINES (SINGAPORE).
GEORGE MCLAREN, SENIOR COMMUNICATIONS MANAGER (george.h.mclaren@Rolls-Royce.com) (Telephone: +1 (317) 280-8260) (Mobile: +1 (317) 366-9624)
PAUL RANDALL, STRATEGIC MARKETING MANAGER.
JEREMY HUGHES, (TRENT 1000-TEN) CHIEF PROJECT ENGINEER.