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Rolls-Royce and Lufthansa sign $215m Trent 500 care agreement

Thailand will join China in tourist promotion

Rolls-Royce and Lufthansa sign $215m Trent 500 care agreement

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 Airbus A340-600s.

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 Rolls-Royce.”

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 services capability.

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.

Thailand will join China in tourist promotion

Tourism Authority of Thailand (TAT) governor, Juthamas Siriwan announced that Thailand and China will hold a joint press conference at the world’s largest travel exposition, the International Tourism Exchange ITB Berlin, to promote themselves as a package destination. The tourism trade fair will be held from March 7 to 11 in Germany.

“This year we have to reposition ourselves by linking our destination with big countries like China,” Juthamas said.

The joint press conference with China will be part of TAT’s “Tourism Capital of Asia” campaign, which is aimed at lifting the country’s image and boosting the tourism industry over the next three years.

TAT and China’s National Tourist Administration (CNTA) will jointly promote the historical “Silk Route” to attract tourists to both countries.

In the first 10 months of 2002 tourist arrivals to Thailand totaled 8.75 million, an increase of 7.2 percent over the same period in 2001. The figure was higher than the targeted growth of 4 percent, or 10.5 million arrivals for the whole year. It is estimated the total figure for 12 months of 2002 is 10.7 million.

TAT expects tourist arrivals in 2003 will continue to grow by 6 percent to 11.3 million. “If there is a war between the US and Iraq, the number of tourist arrivals in 2003 should be the same as 2002,” Juthamas said.

The Thai tourism industry has done better than competitors in the region because of better public relations activities, promotional efforts and strong marketing activities in all overseas markets.

During the last two months of 2002, visitor arrivals continued to rise in spite of disturbances in Bali and the Philippines, which affected travel to the region in the short term.

The markets most affected by the downturn were the Middle East, Oceania and Africa. However, overall growth remained positive, with New Year celebrations boosting arrivals. (TNA)