Andrew Doyle/MUNICH
Rolls-Royce (R-R) has failed to reach agreement with SAirGroup maintenance unit SR Technics over the structure of their proposed Trent engine overhaul joint venture, despite a year of talks on the scheme. Lufthansa Technik, having pondered participation in the venture, is no longer involved in the discussions.
SR Technics is unwilling to sell the UK manufacturer a stake in its engine shop, and the pair are instead negotiating on the formation of a standalone company to handle functions such as sales and marketing. The Trent overhaul work would be carried out by SR Technics in Zurich and R-R in Derby.
"At the moment it is quite unclear as to how we will proceed," says R-R Aero Engine Services senior vice president Martin Wilson. "There have been some problems determining what type of entity the joint venture should consist of."
SR Technics is building a major Airbus A330/A340 maintenance capability and wants to offer Trent 700 and 500 engine overhauls as well. The Trent 700 powers a large number of A330s, while the Trent 500 is the sole powerplant for the A340-600, which is due to enter Swissair service in 2002.
Project manager Felix Härtsch, who is handling the joint venture talks for SR Technics, says: "We have to find a way to team up that will allow us to share all the advantages of each company." Härtsch adds that while the company's favoured strategy is to team up with R-R, it would consider entering the Trent market alone if the talks fail.
R-R, for its part, is keen to establish a strong presence in the potentially lucrative Trent maintenance market in Europe, having covered Asia and North America through its 50% holdings in Hong Kong Aero Engine Services (HAESL) and Texas Aero Engine Services (TAESL). If the European joint venture goes ahead, R-R would overhaul larger Trent 800s, which power Boeing 777s, at Derby. British Airways will become the first Trent 800 operator in Europe next March when it takes delivery of the first of 16 ordered 777-200ERs. The UK airline has already signed up R-R to support the engines. Trent 700-powered A330 operators in the region include Airtours, Monarch and Gulf Air. Lufthansa is due to add the A340-600 to its fleet in 2002.
Source: Flight International
