17th Jul 2006 07:00
17 July, 2006 CONTINUING ASIA PACIFIC DEMAND TO DRIVE $600 BILLION ENGINE MARKET OVER NEXT TWO DECADES, SAYS ROLLS-ROYCE * Predicted Asia Pacific growth 6.6 per cent year-on-year * 250-350 seaters lead sector demand * Sustained growth in large widebodies * New product launches to drive strong corporate jet market Rolls-Royce expects continuing, strong growth throughout Asia Pacific tounderpin global demand for 51,000 new commercial aircraft, ranging frombusiness jets to high-capacity airliners, over the next 20 years.Unveiling its updated civil market forecast on the opening day of the UK'sFarnborough International Airshow, Rolls-Royce said the 114,000 jet enginesrequired to power the global fleet's growth would have a potential value of$600 billion.The company believes that high fuel prices will drive airlines to focus evenharder on operating cost benefits of highly efficient, new-generationjetliners.Rolls-Royce, which produces an independent forecast using a wide range ofindustry sources, expects air traffic demand in Asia Pacific to grow at anaverage of 6.6 per cent year-on-year throughout the forecast period.Within this estimate, growth in China over the next 20 years is anticipated tobe around 8 per cent per annum. Since the Outlook was last updated in March2005, over 150 passenger jets have been delivered to Chinese operators. Demandfrom China is expected to total 6,500 engines valued at $65 billion through to2026.India continues to be recognised as a major, emerging force in commercialaviation. India is included within the Asia Pacific forecast total, but isexpected to provide a potential market in its own right for at least 1,600engines in the next two decades.The North American market, although growing more slowly than other regions,remains the largest market for single-aisle aircraft and business jets. Much ofthe demand is underpinned by the need to replace existing aircraft, giving amarket for around 20,000 engines for mainline and regional aircraft, and 30,000engines for business jets - worth a total of $160 billion.Rolls-Royce re-iterates its view that fleets in the CIS and Russia will producesignificant growth, creating a 20-year demand for 3,000 engines. Although usedaircraft are expected to feature widely in the business mix, the growth willnevertheless have the effect of generating liquidity in the wider market.The forecast anticipates the single aisle, 110-180 seat segment will create thelargest unit demand with anticipated demand for 29,000 engines worth $185billion.The largest sector by value, however, is viewed as that involving small andmedium twin-aisle aircraft of 250-350 seats, triggering engine sales worth $230billion, with 40 per cent of the demand coming from Asia.Rolls-Royce also expects to see strong and growing demand for aircraft in the400 seats plus category. The Outlook points to a potential $85 billion enginemarket in this sector, including those needed to power the growing cargo fleet.Rapid growth in the large business aircraft sector is seen as a major factorwithin the corporate jet market, which is expected to generate a requirementfor 51,000 engines with a value of $70 billion.The forecast in full can be accessed on the Rolls-Royce website,www.rolls-royce.com/civil_aerospace/overview/market/outlook/default.jspFor further information contact:Martin JohnsonVice President, CommunicationsRolls-Royce Civil AerospaceEmail: [email protected] International AirshowHall 4, Stand G17Chalet D1-4, Row BTel: +44 (0)1252 523610ENDROLLS-ROYCE GROUP PLCRelated Shares:
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