Rolls-Royce is contemplating a move into the midsize jet market,
a major shift for the company that dominates the top end of the
corporate sector with its Tay and BR700-series engines.
Alan Stiley, vp for marketing and product strategy in the company's
corporate aircraft sector, tells Show News that Rolls-Royce
is looking at an engine in the 3,000-5,000 pounds thrust class,
competing with the long-established TFE731 and Pratt & Whitney's
PW500 family. "We don't have a date in mind, and anything
we do will be based on a sound business decision," says Stiley,
but a smaller engine "is taking a lot of time and brainpower"
within the company.
Smaller engines are looking good to Rolls-Royce because the
company is detecting signs that the corporate market is moving
towards smaller aircraft. "There are mixed signals, but the
signs are that the recovery is starting sooner at the lower end
of the market," says Stiley. Rolls-Royce is already represented
in the light-jet class through its joint venture with Williams
on the FJ44, but has no product between that engine and the AE3007.
The biggest challenge is to make money in a competitive, price-driven
sector. There is "a lot of sense" in a joint venture,
says Stiley, but in Rolls-Royce's view the key to success is to
develop a common, multipurpose core that can be used for many
civil and military applications ranging from business jets to
helicopters and military aircraft.
At the opposite end of the market, Stiley confirms that Rolls-Royce
is working with all the companies that are designing supersonic
business jets, research being divided between Derby, UK and the
Allison Advanced Development Company in Indianapolis.
"We're providing them with engine deck models and cross-sections
to show them what we think an SSBJ engine should look like,"
he says. "We've been told by one airframer that we're the
natural supplier, for two reasons-we provide the engines for the
premium long-range jets, and we have more sustained supersonic
experience than anyone else." If the sonic boom problem can
be solved-August's low-boom demonstration by Northrop Grumman
was "very, very important", says Stiley-building an
SSBJ "is not that much of a challenge."
According to Stiley, the next debate over the SSBJ will hinge
on its size. "There are two schools. One group wants a 100,000
pound-plus aircraft. The others would like to build an SSBJ half
that size with a Learjet-sized cabin, and say that people won't
mind because they'll be in it half as long."
In the nearer term, Rolls-Royce believes that the market "has
hit the bottom, but how long is the bottom?" asks Stiley.
Market planning director Mike Miller adds that the market is giving
out mixed signals. "Cessna had a pretty good first half,
in terms of orders. Dassault is having a difficult time and Bombardier
is struggling to put strategies in place." Overall, Stiley
suggests, the business is still absorbing the used airplanes that
manufacturers bought in the late 1990s "at or above market
price" in a bid to build market share. Miller's prediction:
2003 and 2004 will be tough years with 500 deliveries each, but
that orders will start to recover next year, in time to boost
deliveries in 2005.
