Rolls-Royce announced that it had signed a ten-year Total
Care agreement worth $215 million with Lufthansa to provide in-service
support for the Trent 500 engines powering the airline’s new fleet of
Lufthansa becomes the third customer for growth versions
of the A340 to place long-term engine support agreements with Rolls Royce in
2002, worth a total of more than $600 million and bringing civil aerospace
aftermarket services business in 2002 to around $1.5 billion.
Well over 40 percent of all Trent engines for the
A340-500 and -600, Boeing 777 and Airbus A330 are covered by Total Care
agreements. Customers select from a menu of services to produce tailor-made
solutions which match individual fleet requirements based on agreed rates
per flying hour.
Deliveries of the ten A340-600s for which Lufthansa has
placed firm orders begin in the third quarter of 2003, with the aircraft
scheduled for use on routes to Asia and the Americas. The airline also has
options for a further ten of the four-engined, long-range jets.
Charles Cuddington, managing director - Airlines,
Rolls-Royce said, “We continue to see increasing demand for these
comprehensive aftercare packages which deliver a range benefits, including
predictable budgeting for our customers. This agreement also marks an
extension of the strong relationship already forged between Lufthansa and
Lufthansa has also ordered a second member of the Trent
family, the Trent 900, for its 15 firm Airbus A380s scheduled to enter
service in 2007. Rolls-Royce is a senior partner in International Aero
Engines whose V2500 powerplant has been used by Lufthansa on its A321
twinjets since 1994.
The Trent 500 is the sole engine offered on growth
versions of the A340. Thirteen customers and operators have placed firm and
option orders for a total of over 400 engines. The 53,000lb thrust Trent 553
is paired with the ultra long-range A340-500 while the 56,000lb thrust
version, the Trent 556, powers the higher capacity A340-600.
Rolls Royce plc operates in four growth markets - civil
aerospace, defense 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 to a total of 54,000 gas turbines
in service worldwide. The investments in product, capability and
infrastructure to gain the 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 39,000 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
maximize aftermarket revenues through the development of a comprehensive
Annual sales total around 6 billion Pounds of which over
40 percent currently comes from aftermarket services. The order book stands
at more than 19 billion Pounds, which, together with aftermarket demand,
provides visibility as to future activity levels.