Bullish Rose Hints at Big Engine Deals Here

With a record order book of more than $18 billion and pre-tax profits up last year up by 11%, Rolls-Royce is in bullish mood here with the widest range of engines it has ever had to offer both civil and military markets.

A contributory factor to the company's current high morale is the "remarkable" way in which Asian airlines have recovered from the 1997 financial crunch. Rolls says their recovery has restored market balance between the Asian, European and American global sectors. A better market situation now prevails than that at the Paris show just a year ago.

Chief executive John Rose alluded to further good news at the Rolls-Royce reception on Sunday evening, but said he would not pre-empt airline customers' announcements on key engine selections which were "likely" to be made this week.

These are known to be big Trent 600 and 900 variants proposed for forthcoming Boeing 747 and 767 developments, and for Airbus A3XX-for which the Gulf carrier Emirates is expected to place a launch order.

The smaller Trent 500 is nearing certification on both a flying test bed and ground rigs and the first production engines will shortly be ready for delivery.

It remains Rolls' intention to have a Trent variant available for every wide-body commercial aircraft on the market.
Another star in Rolls-Royce's commercial firmament is the AE3007, for which more than 2,000 have been ordered against commitments for Embraer's range of regional airliners and corporate jets. Rose said the relative lack of Rolls-Royce product elsewhere in the regional jet sector results from competing types having been designed around older engines.

Not that longevity in engines careers was a bad thing: there have been enormous returns from investments made as long as 50 years ago, Rose said, citing the Viper as an engine which is still being manufactured. The Dart turboprop, though no longer in production, continues to bring returns from spares and service support, he reported.

Rolls-Royce engines ranging from 2,000-95,000 lbs thrust are in service with more than 500 airlines and some 2,400 corporate and utility aircraft operators, while about 30,000 Rolls military engines are in use by 165 armed forces in over 100 countries.

The company is confident in the "robustness" of its portfolio of military powerplants, Rose said, citing the Pegasus and Adour in particular. It will actively seek involvement through partnership in the American Joint Strike Fighter, a project which has important implications in both the U.S. and Europe.

Rose opened his remarks by apologizing for the absence of his boss, Rolls-Royce chairman Sir Ralph Robins, who normally hosts the eve-of-show event. Sir Ralph, he disclosed to much laughter, had mistakenly thought that Farnborough was still in its traditional September spot.
"It's understandable. He has been coming to Farnborough shows in September for longer than I have been alive," said Rose.

By Bob Rodwell