Dragonair and Rolls-Royce sign Trent Services deal

London, February 17 -- Rolls-Royce announced today (17 February) that it had signed a long-term services agreement with Hong Kong's Dragonair for maintenance of the Trent 700 engines which power the airline's fleet of Airbus A330s.

The TotalCare package, based on agreed rates per flying hour, covers five A330-300 twinjets and is valued at US$160 million by Rolls-Royce.

David Lui, General Manager Engineering, Dragonair, said: "This agreement expands an excellent working relationship with Rolls-Royce that spreads across our Airbus fleet.

TotalCare gives Dragonair a high degree of budgeting visibility and places the care of our engines in the hands of the original manufacturer."

Maintenance of Dragonair's engines will be carried out at Hong Kong Aero Engine Services Ltd. (HAESL), a joint venture involving Rolls-Royce, HAECO and Singapore Airlines Engineering Company.

Today's announcement means that of the 25 customers and operators of Rolls-Royce Trent 700-powered A330s, nearly half have now signed for TotalCare packages.

Dragonair, which was established in 1985, uses its A330s on regional routes to mainland China and throughout Asia. It also operates a fleet of 12 A320 series aircraft powered by the V2500 from International Aero Engines, a consortium in which Rolls-Royce is a senior shareholder.

Corporate Note to Editors:

Rolls-Royce plc operates in four growth markets - civil aerospace, defence aerospace, marine and energy. It is a global company 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 the company's rapid and substantial gains in market share over recent years. As a result, engine deliveries have grown and the company now has a total of 54,000 gas turbines in service worldwide. The investments in product, capability and infrastructure to gain this market position create high barriers to entry.

Rolls-Royce has a broad customer base consisting of more than 500 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces and more than 2,000 marine customers, including 50 navies. The company has energy customers in nearly 120 countries. Rolls-Royce employs around 38,000 people worldwide, including 23,500 in the UK, 5,000 in the rest of Europe and 8,000 in North America.

Most of the engines in service will have operational lives of 25 years or more, generating an assured aftermarket demand for the provision of spare parts and services. The company's strategy is to maximise aftermarket revenues through the development of a comprehensive services capability.

Annual sales total around £6 billion of which over 40 per cent currently comes from aftermarket services. The order book stands at more than £17 billion, which, together with aftermarket demand, provides visibility as to future activity levels.

Martin Johnson, Head of Communications, Civil Aerospace, Rolls-Royce plc, Derby, DE24 8BJ, UK

Email: martin.johnson@rolls-royce.com, Tel: +44 (0)1332 248688