Rolls-Royce sees its new partnering agreement with engineering support business Serco to target UK power-by-the-hour maintenance as the first step to gaining a larger military maintenance, repair and overhaul (MRO) footprint outside its home market, writes Aimée Turner.
The agreement to offer MRO services to the UK Ministry of Defence in support of the UK's Defence Industrial Strategy builds on an existing £110 million ($210 million) contract between the companies to support Lockheed Martin C-130s at Royal Air Force Lyneham and Gem and Gnome engines for Westland Lynx and Sea King helicopters at Royal Naval Air Station Yeovilton.
R-R services director Miles Cowdry says the aim is to exploit a 25-year opportunity to maximise defence services revenue from the company's 20% share of the global market - with an installed base of 20,000 military aeroengines in 160 armed forces - through more privately contracted MRO business. "The US and UK we consider our home markets, but we are now looking at how we can apply our learning around the world. There are very few places this will not reach."
Services account for 55% of R-R's defence aerospace business in the European military aircraft and equipment MRO market - a sector worth about €13 billion ($16.5 billion) last year. "We have been driven to extend scope and new partners help us achieve that," says defence aerospace services director Nick Durham.
R-R will use its Bristol operations centre to help determine whether engine issues are isolated events or fleet-wide problems. Remote boroscoping is planned for 2007, and health monitoring initiatives are being developed to apply its Mission Ready Management Solutions principles.
Source: Flight International
