EgyptAir and Rolls-Royce sign Trent engine contracts

The agreements will be signed in Cairo by Gen. Eng Atef Abdel Hamid, Chairman, Egyptair Holding Company, and Charles Cuddington, Managing Director, Airlines Business, Rolls-Royce.

The deal, worth a total of $150 million, was originally announced at the Paris Air Show in June and involves engines to power seven A330-200s which form the new flagship fleet for EgyptAir's medium range operations. Deliveries begin in June 2004.

Praising the airline for its "ambition and vision," Charles Cuddington added:
"Rolls-Royce will be working closely with EgyptAir on a number of operational and maintenance initiatives and we are enthusiastic about being part of these collaborations."

The wide-ranging series of agreements covers the puchase of the Trent 700s and a
Ten-year TotalCare contract, which gives Rolls-Royce full responsibility for the maintenance of the Trent fleet at an agreed rate for every hour flown. The arrangement removes the risk of unpredictable maintenance costs from EgyptAir and provides the airline with total budget visibility for the care of the Trent fleet.

Additionally, Rolls-Royce will work with EgyptAir to develop the airline's in-country maintenance capability for the new Trent 700s as well as V2500 and CFM engines which already form part of the wider fleet. This will involve technical support and training provided by Rolls-Royce personnel based in Cairo.

EgyptAir is the fifth Middle East customer to choose the Trent 700 which powers 80 per cent of A330s in the region. It will be used by the airline on routes to destinations including Europe and South Africa. The Trent is the market leader on the A330 with a 37 per cent share of orders, and a worldwide customer base of 27 operators.

Rolls-Royce plc operates in four global markets - civil aerospace, defence aerospace, marine and energy. It is investing in technology and capability that can be exploited in each of these sectors to create a competitive range of products.

The success of these products is demonstrated by the company's rapid and substantial gains in market share over recent years. As a result, engine deliveries have grown and the company now has a total of 54,000 gas turbines in service worldwide. The investments in product, capability and infrastructure to gain this market position create high barriers to entry.

Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces and more than 2,000 marine customers, including 50 navies. The company has energy customers in nearly 120 countries. Rolls-Royce employs around 36,000 people, of which 22,000 are in the UK. Forty per cent of its employees are based outside the UK - including 5,000 in the rest of Europe and 8,000 in North America.

Most of the engines in service will have operational lives of 25 years or more, generating an assured aftermarket demand for the provision of spare parts and services. The company's strategy is to maximise aftermarket revenues which have increased by 60 per cent over the past five years due to the development of a comprehensive services capability.

Annual sales total nearly £6 billion, of which 50 per cent currently comes from aftermarket services. The order book stands at more than £17 billion, which, together with aftermarket demand, provides visibility as to future activity levels.