19th May 2008 16:36
May 19, 2008 ROLLS-ROYCE FORECASTS BUSINESS AVIATION GROWTH: MEDIUM AND LARGE JET DELIVERIES DOMINATE Geneva, Switzerland - Rolls-Royce today predicted continued growth in businessjet deliveries through the remainder of the decade and forecast an enginemarket worth $110 billion over the next 20 years, with medium and largebusiness jets dominating in terms of aircraft and engine value. The company'sbusiness jet forecast was released at the 2008 European Business AviationConference and Exhibition (EBACE) in Geneva.Rolls-Royce forecasts that 79,000 engines, valued at $110 billion, are neededover the next 20 years to meet a demand for 39,000 new business jet aircraft,from very light jets to business jetliners. Demand is being augmented by anincrease in deliveries to non-USA markets coupled with the introduction of newmodels, which will add a further stimulus to the market.
Demand is being fuelled by the business community's increasing recognition of the value of using business jets as a means of enhancing productivity.
Of the 39,000 new business aircraft, 40 per cent are expected to be in the medium or large business jet category (75 per cent by value). The forecast predicts that nearly 16,000 medium and large business jets will be delivered between 2008 and 2027.
These are the sectors in which Rolls-Royce has successfully participated forover 40 years, resulting in a market leading 34 per cent share by value of thetotal sector.Rolls-Royce is working hard to improve the environmental impact of its productsand has the youngest, most fuel-efficient engine fleet of all the enginemanufacturers. It has brought six new civil engine programs to market in thepast six years, two of which are applications for the corporate market.To further strengthen its position in this growing market, Rolls-Royce isdeveloping the BR725 engine which will power the Gulfstream G650. This is a newsector defining aircraft. It features a large cabin, long range and high speed.In addition, the RB282 engine has been launched on the Dassault SMS, a newsuper mid-sized business jet.
The BR725 engine will set the standard in environmental performance for the corporate market, reflecting Rolls-Royce's continuous focus on reducing noise and emissions through its investment in technology.
Other engines in the Rolls-Royce portfolio include: the AE 3007 engine poweringthe Cessna Citation X and Embraer Legacy 600; the Tay 611-8C engine poweringGulfstream's G350 and G450; and the BR710 engine powering the Bombardier GlobalExpress, Global 5000 and Gulfstream G500 and G550 aircraft.
All of these engines are supported by Rolls-Royce CorporateCare‚®, the industry's most comprehensive engine maintenance management program.
Alan Stiley, Rolls-Royce Vice President for Marketing, Corporate and RegionalEngines said: "The market continues to grow at a robust rate; it has alsobecome more diverse in terms of geographic distribution and breadth of aircraftcapability available. In response, Rolls-Royce will continue to invest in newproducts and services in order to maintain its leading position with businessaircraft operators and manufacturers."
For a copy of the full presentation, please visit: www.rolls-royce.com
NOTES TO EDITORS:
1. Rolls-Royce, a world-leading provider of power systems and services for use
on land, at sea and in the air, has established a strong position in global
markets - civil aerospace, defence aerospace, marine and energy.
2. In 2007, Rolls-Royce maintained a market-leading 34 per cent share of
business jet engine deliveries, based on the value of its share of that
year's estimated $2.3 billion business jet engine market.
3. The business jet engine products include: the AE 3007, produced in
Indianapolis, Indiana, powering the Embraer Legacy and Cessna Citation X;
the Tay 611 series, manufactured in Dahlewitz, Germany, used on the
Gulfstream G350 and G450; and the BR710, also built in Dahlewitz, powering
Bombardier's Global 5000 and Global Express and the Gulfstream G500 and
G550. The two in-development engines are the BR725 for the Gulfstream G650
and the new RB282 selected for the Dassault SMS.
4. The business jet market has long been a successful element of the
Rolls-Royce portfolio of aircraft engines. The company powers 15 different
in-service business jet types* in a fleet of 2,100 aircraft. Over one third
of this fleet is covered by a long-term maintenance agreement with
Rolls-Royce.
5. Rolls-Royce offers long-term CorporateCare‚® maintenance agreements for its
BR725, BR710, Tay, RB282 and AE 3007 engines. The company also provides
traditional field service, repair and overhaul for these engines and the
company's out-of-production Dart and Spey business jet engines.
6. Rolls-Royce is working hard to improve the environmental impact of its
products. Each year, in collaboration with its partners, it invests over
‚£800 million on research and development, two thirds of which has the
objective of reducing the environmental impact of its products. The primary
technology investment area is aimed at reducing noise and emissions.
7. 2007 annual sales total were ‚£7.4 billion, of which 55 per cent related to
aftermarket service revenues. The order book at December 2007 was ‚£45.9
billion, which together with demand for services, provides visibility as to
future levels of activity.
For further information, please contact:
Mark AlflattDirector of Financial CommunicationsRolls-Royce plcTel: +44 (0) 20 7227 9241
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