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Rolls-Royce AE 3007 engine powers Hainan Airlines 50 ERJ 145 regional aircraft order


15 September 2006 - Rolls-Royce confirmed today that Hainan Airlines Group Company Ltd. has ordered 50 Embraer ERJ 145 aircraft powered by the Rolls-Royce AE 3007 engine. The order is potentially worth more than $500 million. Deliveries are due to start in 2007.

The agreement is for more than 100 engines and includes a long-term TotalCare® services agreement.

Ian Aitken, President, Rolls-Royce Corporate & Regional Aircraft said: “This order is an important affirmation of the global potential for regional aircraft, particularly in expanding markets such as Asia. The AE 3007 engine, with its 10-year history of reliability on the ERJ 145 aircraft will serve this region well. We are proud that Hainan, which became part of the Rolls-Royce family in July when it selected the Trent 700 for seven A330s, has added to its fleet of Rolls-Royce engines.”

Rolls-Royce has delivered more than 1,900 AE 3007 engines to Embraer since the ERJ145 entered service in 1996. The fleet has accumulated more than 19 million hours, and the same number of cycles.

Note to editors

1. The AE 3007 engine series accumulates more than 300,000 flying hours per month - equivalent to an average of one take-off or landing every 20 seconds. There are more than 900 Embraer ERJ 135s, ERJ 140s and ERJ 145s in civil, military and corporate operations globally. The AE 3007 engine is approaching the 25 million hour milestone among all applications and nearly 2,000 engine deliveries.
2. Approximately 90 percent of the Rolls-Royce regional fleet is covered by TotalCare contracts. Under these comprehensive and individually tailored services packages, Rolls-Royce is responsible for engine fleet maintenance, with airlines paying an agreed dollar rate per flying hour.
3. TotalCare agreements, tailored for individual customers, offer a range of services extending to aspects of support such as provision of lease engines, as well as repair and overhaul. Rolls-Royce takes full responsibility for care of the engine fleet in return for payment by the customer on an agreed dollar rate per flying hour.
4. Rolls-Royce powered aircraft are currently operating with ten Chinese airlines, including those based in the Hong Kong and Macao SARs.
5. China, where Rolls-Royce has had a presence for more than 40 years, is a significant market for the company’s aviation, marine and energy products, and a manufacturing partner of growing importance. Rolls-Royce has offices in Beijing, Shanghai, Dalian and Hong Kong, and recently opened a new marine facility in Shanghai. The company is also involved in two joint ventures – Hong Kong Aero Engine Services Limited (HAESL) in Hong Kong, and Xian Rolls-Royce Aerocomponents (XRA) in Xian.
6. The growth potential in the Asian marketplace highlights Rolls-Royce recent 20-year engine forecast that calls for more than 6.6 percent growth year-on-year for a demand of 6,500 engines through 2026.
7. Rolls-Royce has a broad customer base comprising nearly 600 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces and more than 2,000 marine customers, including 70 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 percent of its employees are based outside the UK - including nearly 5,000 in the rest of Europe and nearly 8,000 in North America.
8. The large installed base of engines generates demand for the provision of services. The company seeks to add value for its customers with aftermarket services that will enhance the performance and reliability of its products. Services revenues have grown by 11 percent per annum compound over the past ten years. Annual sales total £6.6 billion, of which 54 per cent are services revenues. The firm and announced order book is more than £25 billion, which, together with demand for services, provides visibility of future levels of activity.


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