Page 10 - AAA JANUARY - FEBRUARY 2019 Online Magazine

ROLLS ROYCE BAILS ON
BOEING’S PROPOSED 797

Rolls Royce has stunned the aviation world by pulling
out of the race to power Boeing’s proposed 797 as it
announces a £2.9 billion loss as the cost mounts of
rectifying durability faults on its Trent 1000 engines that
power some 787s and Airbus’s decision to ditch its su-
perjumbo. The engine maker has so far taken a £790m
loss on the 787 engine wear issue and another £150
million write-off the A380 shutdown. Qantas’s 787s are
powered by General Electric engines.

But it wasn’t all bad news as Rolls Royce’s underlying
operating profit of £616m was double that of previous
year. However, it will be some time before there are
blue skies for the famous aero engine maker with some
estimates suggesting that cost of fixing the 787 engines
could double. The decision to pull out of the 797 pro-
gramme has far reaching implications for Rolls Royce
for its reputation and long-term future in the civil mar-
ket.
In a statement to the stock market Rolls Royce said that
“we are unable to commit to the proposed timetable
to ensure we have a sufficiently mature product which
supports Boeing’s ambition for the aircraft and satisfies
our own internal requirements for technical maturity
at entry into service.” According to Chris Cholerton,
president of the civil aerospace division, “this is the
right decision for Rolls-Royce and the best approach for
Boeing.”
He added that “delivering on our promises to customers
The Aussie airline wants to add underfloor bunks to the is vital to us and we do not want to promise to support
winner of its competition because on ultra-long-haul Boeing’s new platform if we do not have every confi-
flights the aircraft will carry virtually no cargo, just pas- dence that we can deliver to their schedule.”
senger’s bags. Air New Zealand is going to accelerate the It is that support for its customers that is causing huge
issues for a range of airlines whose 787s are powered
redesign of its interior offering at its Hangar 22 seating by certain models of the Rolls Royce Trent 1000.
project after it decides on either the Boeing 777X or
A350 in April. Air NZ chief executive Christopher Luxon Airlines are having to ground 787s, cancel flights and
lease in other planes to fill the void. Leasing-in planes
told AirlineRatings.com at the inaugural of the airline’s is rarely a good option as they are not fitted with the
first service to Chicago last year that the airline had been airline’s standard offering cabin, which for many is their
bringing customers through to experience mock-up cabin big selling point. Boeing is expected to announce a go-
ahead to offer its 797 to airlines within months.
spaces in an attempt to learn their thinking about space,
storage, and privacy.

“We’ve been running customers through a number of
mock-ups that at this stage are quite primitive and quite
conceptual but are giving them a feel about what they
want to play back to us around that,” he said. There is
no doubt the longer ranges of the 777X models and the
A350-1000 will lead to more creature comforts such as
lounges.

Emirates is expected to introduce Premium Economy on
its 777X, and other airlines have indicated that it will be
a platform to showcase the airline’s best. But for Airbus
selling the virtues of the A350 against the background of
the problems that Rolls Royce is experiencing with some
of its engines must be a challenge.
The famous engine maker’s reputation has been badly
tarnished, and it will take some time for the pain to dis-
appear from airline board rooms. Meantime, Boeing and
General Electric are soaring with the 777X.

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