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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
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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.
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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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