Rolls-Royce and Qantas sign engine service agreements
London, June 18 -- Rolls-Royce and Qantas have signed a series of long-term engine support agreements covering three aircraft types and involving TotalCare contracts of up to 10 years. The announcement was made today (18 June) at the Paris Air Show.
The agreements include 113 RB211-524 series engines powering Boeing 747-400s and Boeing 767-300 aircraft, along with 28 BR715 engines in service on Boeing 717 regional jets operated by wholly-owned Qantas subsidiary, QantasLink.
John Cheffins, Chief Operating Officer, Rolls-Royce, said: "Qantas joins a growing list of our airline customers in opting for the benefits of TotalCare arrangements. Around a third of our airlines fleet is now handled under such agreements - individually tailored packages which provide complete budget visibility through agreed flying-hour price rates."
Corporate note to editors
Rolls-Royce plc operates in four global markets - civil aerospace, defence 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 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 comprising 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 37,000 people, of which 22,000 are in the UK. Forty per cent of its employees are based outside the UK - including 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 which have increased by 60 per cent over the past five years due to the development of a comprehensive services capability.
Annual sales total nearly £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.
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Martin Johnson, Rolls-Royce Media Centre, Chalet B 48 Tel: + 33 (0) 1 4157 4875 / Fax: 4894 Email: airshow@dial.pipex.com