Despite a significant demand for new aircraft and engines throughout the sector, a top executive told Reuters on Wednesday that price rises for Rolls-Royce (RR.L) and new generation aircraft engines are not affecting sales.
“Pricing has increased throughout the whole sector. However, we also enjoyed a sales record-breaking year. On the fringes of the Singapore Airshow, Ewen McDonald, the company’s chief customer officer for civil aerospace, stated, “It’s definitely not having an impediment.”
In November, the British company Rolls-Royce announced that by improving jet engine performance and reducing expenses, it will double earnings in five years.
The largest factor influencing profit would be a significant shift in margins for an engine company that powers over half of long-haul aircraft, such as all Airbus (AIR.PA) aircraft that launch new A330neo and A350 models and certain Boeing (BA.N) aircraft that launch new Tab 787 aircraft.
This month, loyal client Thai Airways decided to go with rival GE (GE.N), opening a new tab to provide engines for 80 new Boeing 787s, citing pricing disputes, according to sources.
Emirates Airline President Tim Clark chastised Rolls in November for the XWB-97 engine’s lack of endurance in hot, dusty environments, stating that improvements were required before Emirates would purchase Airbus A350-1000s.
In order to improve its four Trent engine types, Rolls Royce said last year that it will invest more than 1 billion pounds ($1.26 billion).
McDonald predicted that by 2028, the XWB-97’s endurance in extreme settings—like the scorching, sandy conditions of Emirates’ base in Dubai—will have doubled.
The amount of time until an overhaul will rise by 50% under typical operating circumstances.
2019 saw an almost complete rebound to pre-pandemic levels due to increased demand for air travel worldwide, but the sector has been plagued by a significant lack of new aircraft, labor, and components.
In recent months, Rolls-Royce has begun to hint that it would go back to producing engines for single-aisle aircraft. Currently, these engines are divided between Pratt & Whitney, a division of RTX, and CFM International, a joint venture that combines Safran and GE.
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