POWERING ON
15MEIP12_05
12/01/2015
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Rolls-Royce's Chief Engineer discusses new technologies that inspire current R&D design and evaluation work as part of its strategic roadmap for future big commercial programs.
The steady rise in demand for high-thrust, big-fan engines for new wide-body commercial airplanes continues to generate massive business, as the 2015 half-year results from Rolls-Royce demonstrated. But at the same time, underlying revenue and profits can suffer as demand falters on production that is transitioning to newer, but less mature engines, and as R&D investment increases to bring forward innovation that can safeguard future market share in due course. The company's civil aerospace order book has risen to $103.6 billion and underlying revenue in this sector was up 2% in the first half of 2015, yet profits fell.
The airframe sector of the global commercial air transport market in the size category above 200 seats is totally dominated today by just two suppliers-Airbus and Boeing-and the engine market for these wide body passenger and cargo airplanes is in the hands of just three companies-GE, Rolls-Royce, and Pratt & Whitney, in that order of sales success. Profits from sales of the largest aero engines in production reflect their high value (more than a typical regional jet) and also, increasingly, the return from care packages that can offer lifetime maintenance and repair support, providing airline operators with an attractive alternative to traditional heavy investment in MRO contracts or in-house facilities and services.
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