Rolls-Royce is optimistic that demand for large, long-haul planes, which are its main market, will “come back strongly”, echoing the comments of Airbus, a client.
Tufan Erginbilgic who was appointed to the British Aero-Engine Group six months ago said that the demand has returned and China’s economic recovery is “stronger” than expected.
The company that builds and maintains engines for widebody aircraft, including Airbus A350 and Boeing 787, reported last week that engine flying hours had returned to 83 percent of levels before the Covid 19 upgrade.
The grounding of large portions of the fleet in the wake of the pandemic severely impacted its business model, which relied on revenue from engines that were already flying and after-market sales.
A buying spreefrom airline companies around the world is boosting order books for Boeing and Airbus. The demand for new aircraft is mainly concentrated in the smaller, medium and short-haul aircraft. However, wide-body aircraft are now in high demand.
After a four-year break following the Covid pandemic, executives met at the Paris Air Show to discuss the current state of the supply chain.
Air India finalised a 470-aircraft order from Airbus and Boeing on Tuesday, including 40 A350 wide-body aircraft powered by Rolls-Royce Trent XWB engine.
Stan Deal, the head of Boeing’s commercial aircraft division told The Financial Times that “there was a lot of robust order”. Many of the orders placed are for aircraft that will be delivered “outside the 2030s”.
He said that many airlines were focusing on a growth narrative and trying to lock in capacity for this growth story every year.
Erginbilgic told reporters that Rolls-Royce is making progress in its radical transformation.
He said that the company does not have to enter the single-aisle market to grow, but he did not rule out the possibility of a partnership. He said that Rolls-Royce does not require “narrow-body” aircraft to grow the business. He said that the company’s business in wide-body aircraft and business jets would continue to grow.
Rolls-Royce pulled out of a US joint venture with Pratt & Whitney more than a ten-year-old ago. Rumors have been circulating that Rolls-Royce would need to find its way back into the aircraft market for the next generation.
Erginbilgic stated that it was “a moot point at this time” since neither Boeing nor Airbus will be developing another plane until 2035.
He said, however, the company’s UltraFan engine technology programme would allow it to get back into the market.
He said, “It is a technology that can be scaled down to a narrow body.”