Rolls-Royce eyes Middle East to boost market share
Tuesday 12/09/2017 - Source: Gulf News
British aircraft engine manufacturer Rolls-Royce is banking on the Middle East sales to raise its market share further, officials said.
The phenomenal growth of the aviation industry in the Middle East has been a big attraction for Rolls-Royce to hunt for more after-market business.
Currently the share of Rolls-Royce's revenues from aftermarket servicing stands at 53 per cent, the rest being accounted for by original equipment (engine) sales.
The company is banking on the success of its new Trent 1000 engines to shore up its profits through both routes of revenue generation. The Trent 1000 forms a winning combination with Boeing 787, delivering, "long-range performance with short-range economics with 15 per cent lower fuel burn than today's engines, 40 per cent lower emissions, 29dB lower noise".
"We have already sold 500 engines in 20 countries and enjoy a 40 per cent share of the market. The Middle East market hopefully will give us more business," Mick Forey, Rolls-Royce's senior vice-president (Middle East, Civil Large Engines), said.
Under the TotalCare plan, Rolls-Royce charges "a certain amount of dollars" for each flight-hour. That money accumulates as the fund required to get the service done 'free of cost' when the engine needs a repair.
"Sixty to 70 per cent of all civil aviation engines are under TotalCare contracts. Eighty-five and 95 per cent of corporate and private jet engines are under TotalCare. We have 100 contracts now. Emirates, however, has always been resistant to go for TotalCare. We are trying very hard to convince them of the benefits of the scheme," said Forey.
The yet-to-be-launched Trent XWB (extra wide-body) is another area of Rolls-Royce's core focus, "The airlines are pressuring Rolls-Royce to speed up the programme, but the aircraft manufacturers do not want that. The A380 delay has been a bitter experience."
The Trent XWB's Preliminary Engine Definition is scheduled to be ready by 2018 and the first engine will go to test the next year. While the certification is due in 2011, the Trent XWB will make its entry into service in 2012.
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