On the Record with

CHARLES CUDDINGTON, EVP
FOR AIRLINES, ROLLS-ROYCE

The stakes are high for the large engine manufacturers as Asia-Pacific gears up to choose Airbus or Boeing for its next generation of long-range airliners.

Market-leader Rolls-Royce (it claims a 53% share of large engine orders there) is battling to retain its dominance in the market, one which has culminated in it powering every single Boeing 777 in southeast Asia with its Trent 800.

But the new Boeing 777X will offer airlines only the GE90 powerplant, while the rival Airbus A340-500/600 is powered by the Rolls-Royce Trent 500.

This means that airlines operating 777s must accept GE powerplants on the bigger aircraft, mixing their engine fleets. Or they can stick with Rolls and buy Airbus, which means mixing their aircraft fleets.

The danger is that customers for the new 777X will then choose GE if they buy more of the current aircraft, ending Rolls-Royce's dominance there.

"It's my job to make sure they don't," says Charles Cuddington, executive vice-president for airline sales at Rolls-Royce. He now finds himself promoting the Trent 800 on the regular Boeing 777, but fiercely competing against Boeing itself on the 777X.

"Now we will be supporting the Airbus A340-500/600 with all our vigor for the Trent 500," he told Show News.

"We have to make sure airlines don't go to GE for other buys just because they have to have it on the 777X. Clearly we are there to support the existing 777 fleet - Boeing deciding to offer only the GE90 on the new airplane won't alter that."

First indications are that airlines are more willing than they have stated to mix engine types on their fleets. For example, El Al recently selected the RR Trent 800 for its purchase of regular 777s in the full knowledge that if it buys the 777X later on, it can do so only with GE engines. British Airways, which launched the GE90 on its 777s, has now chosen the RR Trent 895 on its new fleet of 777-200s. And Emirates, which will shortly have an all-Rolls fleet, is said to be a potential launch customer for the GE-powered 777X.

"So there is a very clear indication as far as we're concerned as to how the marketplace views our engine on the basic 777 versus GE on the 777X," Cuddington said.

Future campaign on the basic Boeing 777 (where there is a choice of three engines) will be fought on what Cuddington says is Rolls' demonstrated superiority in reliability, cost of ownership, and lighter weight. "It is the most reliable of the three engine types on the aircraft. For example, Singapore Airlines went through the first two years of its operation without a single engine-caused delay."

He pointed out that Rolls was the last engine to be certified on the 777, and has come from behind to become the market leader. "This success came after we were able to demonstrate our superiority in service. Since then we've been able to win significant new customers and also win back British Airways," said Cuddington.

Major campaigns in the near term in Asia-Pacific will focus on Cathay Pacific, Singapore Airlines, MAS, Qantas, and Japan Air Lines, Cuddington said, as all have a requirement for either the 777X or the long range A340.

By John Morris