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 On the Record with
John Cheffins, Chief Operating Officer, Rolls-Royce

The biggest aero engine deal so far this year was signed just a few days ago by Rolls-Royce and Gulfstream Aerospace with a $2 billion commitment to power up to 300 GV-SP long-range business jets.

The 10-year deal for 300 firm and 300 options on BR710 turbofan engines follows an earlier $1 billion contract to develop and supply up to 300 advanced Tays for Gulfstream's proposed GIV Next.

The good news comes as Rolls-Royce chief operating officer John Cheffins senses there is some recovery also taking place in the depressed airline sector. But none of it is immediate enough to affect Rolls's projection that commercial engine sales will be down 30% this year in terms of revenues.

"The downturn has been even bigger than after the Gulf War, but there is no doubt that it is easing a bit," Cheffins told Show News. "Airline traffic in December was considerably better than November, but still considerably off from a year earlier everywhere in the world."

Cheffins said that while traffic will pick up this year it will not be sufficient for airlines to return to profitability. "That will probably wait another year or so. For us in manufacturing it will take quite a bit longer." Boeing's forecast of 2004 is probably about right, he added.

Rolls-Royce has worked with customers to defer deliveries but there has been only one cancellation-Swissair, he noted.
Despite cutbacks in production and workforce, Rolls-Royce is continuing on track with all its development programs and there have been no cutbacks in its technology programs, Cheffins said. Now is a good time in the cycle to develop technologies so as to have them ready for the coming recovery.

Meanwhile the Trent 500 is almost finished, "on time, and on spec," Cheffins said. "It is an important trademark that we deliver on time and on spec, and we have done that now with eight engines in eight years. We're very proud of that record, and it helps customers to trust us in ordering an engine that hasn't yet been invented."

Work is progressing on the Trent 900 for the A380, and more partners have joined the program. The latest is Marubeni of Japan, bringing Ishikawajima Harima Industries (IHI) and Korea's Samsung into the program as associate suppliers. They join FiatAvio, Goodrich Corp., Hamilton Sundstrand, Honeywell and Volvo who signed up last year.

By John Morris

Asia's newest engine repair and overhaul shop, the $100 million SAESL, will officially open its doors on Wednesday at Asian Aerospace 2002. The ceremony marks a highlight of the show for SAESL's partners-Rolls-Royce, SIA Engineering (SIAEC), and Hong Kong Aero Engine Services Limited (HAESL).

Singapore Aero Engine Service Ltd. (SAESL) will specialize in the maintenance of Rolls-Royce Trent engines. It will initially be responsible for maintaining Singapore Airlines' fleet of Trent 800 engines, powering its Boeing 777s, but will also serve the growing number of Trent customers in Australasia, Asia-Pacific and the Middle East.

"The shop is absolutely fabulous. It is the best overhaul shop I have ever seen; it is really well equipped, purpose built, and will be very productive," Rolls-Royce chief operating officer John Cheffins told Show News.

"In fact it is already up and running. When we show it to the world on Wednesday there will be real work in progress on its first Trent 800s."

The 20,000-square-meter facility is capable of overhauling 200 Trent engines each year, including Trent 700, Trent 500 and Trent 900 models. It employs more than 400 highly skilled local people.

Cheffins noted the involvement of successful and effective airline partners is central to its strategic approach of worldwide support for its engines. SIAEC is the former engineering arm of Singapore Airlines, and HAESL is a joint venture between Rolls and Hong Kong Aircraft Engineering Company, an affiliate of Cathay Pacific.

Rolls-Royce already has a strong presence in Singapore in component repair and refurbishment with International Engine Component Pte Limited (IECO), located a mile away from SAESL in Loyang.

 

Cathay Pacific will become the first airline in the world to fly every model of the Rolls-Royce Trent family when it takes delivery in September of its first Trent 500-powered Airbus A340-500.

Here in Singapore, the next airline milestone for Rolls-Royce will be the entry into service next year of the Trent 500-powered A340-500 with Singapore Airlines.

SIA is also the launch customer for the Trent 900 on the 550-passenger Airbus A380, followed by its affiliate Virgin Atlantic, and Qantas of Australia. To date all the A380s ordered by airlines in the Asia-Pacific region are Trent-powered.


 

 
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