24th Mar 2005 07:00
23 March, 2005 ROLLS-ROYCE PREDICTS GROWING ASIAN INFLUENCE IN US$550BN COMMERCIAL AIRCRAFT ENGINE MARKET Rolls-Royce today highlighted China as a key area for growth as the commercialairline market continues to expand.Airline passenger traffic grew by 47 per cent in China in 2004, and this isexpected to be the fastest growing region over the next 20 years. Airlinetraffic will grow by 9 per cent per annum, creating a requirement for 2,300aircraft.North America is expected to grow at 3 per cent each year, creating demand forover 7,000 new commercial aircraft for the replacement of existing fleets andgrowth.In total, over the next 20 years, Rolls-Royce predicts a worldwide market for96,000 new civil aircraft engines, worth US$550 billion, with a similar figureforecast for potential aftermarket service opportunities.Around 63,000 engines, worth US$495 billion, are expected to be delivered tocommercial airlines over the period, with a further 33,000 engines, worth US$55billion, required for corporate jet markets.The figures were released today in the latest 20-year Rolls-Royce CivilAerospace Market Outlook, presented at the Speednews Conference in Los Angeles.This report covers forecast aircraft and engine demand for mainline andregional airlines, and corporate jets, for the period 2005-2024.The forecast covers aircraft ranging in size from small business jets up to thelargest airliners. Strong demand is seen across the aircraft spectrum, withincreasing airline and airport liberalisation driving growth in manyinternational and domestic markets.Over 40 per cent of the predicted demand is in the twin-aisle aircraft sector,where the Rolls-Royce Trent family of engines has won half of thenew-generation market. This sector will continue to grow, driven mainly byrapid Asian expansion.In the corporate jet market, Rolls-Royce predicts deliveries of 15,400aircraft, including 3,650 in the large business jet category, such as thelong-range Bombardier and Gulfstream families, powered by Rolls-Royce BR710engines.Rolls-Royce has increased its market share for commercial jet engine ordersfrom less than 10 per cent in the 1980s to a figure of 40 per cent last year.This success, based on a consistent long-term strategy of investing intechnology and capability to create a competitive product portfolio, has seenthe installed base fleet of engines increase by 32 per cent since 2000, with aneven faster increase in engine flying hours.This increase in hours operated by the Rolls-Royce fleet supports theaftermarket service opportunity. The engines to be delivered over the next 20years create a further potential market worth around US$500 billion.For a copy of the full presentation, please visit:www.rolls-royce.com/civil_aerospace/overview/market/outlook/default.jspFor further information contact:Annalie BrownCommunications Manager, Civil AerospaceRolls-RoycePO Box 31Moor LaneDerby DE24 8BJTel: +44 (0)1332 248704Fax: +44 (0)1332 269540Email: [email protected] GROUP PLCRelated Shares:
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