Geoff Thomas
Rolls-Royce chairman Sir Ralph Robins does not see any need for further consolidation between the world's 'big three' engine manufacturers.
Speaking at Farnborough '98, he says that there is room for all three companies - R-R, Pratt and Whitney and GE - each having around a third of the marketplace."
Partnerships
"However," he continues, "partnerships between us will continue to be important and I'm sure that all three of us will continue to offer products and services other than in the aviation market.
"I don't think that there will be any further major changes to the overall structure for the foreseeable future."
Rolls-Royce's order book is at its highest-ever level, claims Sir Ralph. He says: "I've been to every Farnborough airshow since 1958 and so far as Rolls-Royce is concerned, each one has been more important than the last.
"Since 1996, we have maintained our impetus and last year our order book represented 34% of worldwide engine orders and that's tremendous for us."
In last month's half-year results, R-R announced £10 billion ($16 billion) of orders and another £2 billion announced but not yet included in the order book.
In the first half of 1998, order intake was £1 billion higher than in the first half of 1997.
"In the last two weeks, we have announced another $830 million worth of business, with British Airways' selection of the V2500 for its fleet of narrowbody Airbus aircraft.
"We now have engines available for 32 different civil airframes and on 17 of them R-R is the sole engine option.
"This portfolio approach has led to successful long-term relationshps with most of the world's leading airlines.
"Ten years ago, AMR Corporation's American Airlines and American Eagle had none of our products. They now have Rolls-Royce engines in service or on order for four different aircraft types - the Embraer ERJ-145, Fokker 100, Boeing 757 and Boeing 777."
Financial
On the subject of the Asian financial crisis, Sir Ralph says R-R is confident about the future. "At the moment," he says, "Asia represents 17% of our future order book and we've taken an additional £600 million of orders in the past six months, so things haven't dried up at all.
"The market is sure to pick up even more in the future and I'm confident that the current difficulties are only short-term."
Source: Flight Daily News
