Rolls-Royce says it broke even on jet engine sales if spare parts are included. Bloomberg
Rolls-Royce says it broke even on jet engine sales if spare parts are included. Bloomberg
Rolls-Royce says it broke even on jet engine sales if spare parts are included. Bloomberg
Rolls-Royce says it broke even on jet engine sales if spare parts are included. Bloomberg

Leaner, greener Rolls-Royce plots post-Covid jet engine comeback


Tim Stickings
  • English
  • Arabic

Leaner and determined to be greener, Rolls-Royce’s jet engine empire is raring to go as the air industry prepares to put the dark days of the pandemic behind it and put the throttle back on at Britain’s Farnborough Airshow this month.

The aerospace giant has used the crisis to carry out what one top executive called the biggest restructuring in its history, saving £1.3 billion ($1.6bn) by combining assembly lines, rethinking supply chains and cutting 8,700 jobs.

But its engineers were nothing but ambitious when The National toured the Rolls-Royce plant in Derby, with eggs being laid in almost every imaginable aviation basket from electric air taxis to smart engines to power washers.

“Now we are getting the fruits of the restructuring for the growth phase we are in,” said Sebastian Resch, the head of operations for Rolls-Royce’s civil aviation division.

Although the economic earthquake of Covid-19 has not completely settled down, passenger numbers are rising again as the aviation world returns to Farnborough and there are signs of growing optimism in the industry.

Meanwhile, investors are eager to hear what the jet engine business is doing to bring down its carbon emissions, as the richer world races to clean up its act by mid-century.

“We see ourselves very much as part of the solution,” said Matheu Parr, whose team works in the young but promising field of electric aircraft.

Collapse and comeback

The pandemic threw the air industry into its worst crisis in modern times as tourism ground to a standstill and business travellers turned to Zoom, sending demand for international flights collapsing by more than three quarters.

That was bad news for Rolls-Royce because it likes to sell engines under a subscription service in which airlines pay by the hour – so no flying hours, no revenue, and the company lost £4 billion in 2020.

The British manufacturer is the sole supplier for the Airbus A350 and has a sizeable market share on other flagship models such as the A380 and the Boeing 787.

As part of its slimming down process, it turned three assembly lines into one and moved production in Singapore back to Derby, where six or seven engines a week are prepared for passenger aircraft.

The company makes about a quarter of its materials in-house, such as ultra-strong turbine blades ready to withstand 12,000 revolutions per minute, and made in an increasingly automated process with robots doing heavy lifting.

For the parts it cannot make itself, Rolls-Royce has narrowed down its suppliers to a small group of what it regards as high-quality providers and signed long-term deals for the next decade.

We’re concentrating on being a leaner, more efficient business
Chris Cholerton

About $100,000 was saved by reducing costs on repairs of Trent XWB-84 engines, said staff at Rolls-Royce, where about 1,400 people work in maintenance and try to keep engines in their money-making “on-wing” position.

Mr Resch said the company had reduced losses on new engines by 35 per cent despite the volume of sales falling, and broken even if spare engines are included in the equation.

Pent-up demand for air travel is there – the long summer holiday queues at airports are a testament to that – although continuing restrictions in China represent what civil aerospace chief Chris Cholerton calls a handbrake on recovery.

Engineers have also been learning lessons from the debacle of the Trent 1000 engine, a component of Boeing 787s that was found to have cracks and other problems and led to what Mr Cholerton called “awful disruption”.

Rolls-Royce took a “huge reputational hit” from those problems, he said, and although most of the issues have been fixed there are two that have not yet been fully signed off by regulators.

Although it is not immune to supply-chain problems and labour shortages, Rolls-Royce is a prestigious name (although luxury cars are a separate company entirely) and 70 recent job openings attracted 1,300 applicants.

Some savings were afoot before the coronavirus arrived but “a crisis like the pandemic is a very good catalyst”, said Mr Cholerton. “We’re concentrating on being a leaner, more efficient business.”

The zero-emission 'Spirit of Innovation' plane is billed as the 'world's fastest electric anything'. Photo: Rolls-Royce
The zero-emission 'Spirit of Innovation' plane is billed as the 'world's fastest electric anything'. Photo: Rolls-Royce

Clean fuels

Rolls-Royce has already gone public with its ambitions for sustainable aviation fuels, which are made from plant or animal matter and mixed with regular jet fuel.

The big advantage of these blends is that they can be dropped into existing jet engines without engineers needing to fundamentally rework an aircraft as they do with electrics.

That makes SAF the low-emission solution “as far as the eye can see”, said engineer Simon Burr, although longer-term options are being enthusiastically studied.

SAF is more expensive than traditional jet fuel but Rolls-Royce wants to drive up demand by testing 100 per cent sustainable blends that are not currently approved for the market and would need to be compatible with fuel lorries.

“What we are trying to do is signal that you can invest with confidence,” said Mr Burr, who said French and Asian cooking oils had been tried in testing and that sustainable variants did not have the bad odour of jet fuel.

Rolls-Royce had planned to display one of the jewels in its collection, the all-electric, single-seater aircraft Spirit of Innovation, at the cancelled Farnborough show in 2020 but can now show it off as a world record-breaking item.

The plane is “the fastest electric anything on the planet”, said Mr Parr from the electrics department, having flown at a pace of 555 kilometres per hour to set the record for a 5km distance.

With a battery pack powerful enough to charge your phone every day for 20 years, the “flying battery with a pilot attached”, as some engineers jokingly called it, was intended to start generating a supply chain for electric plane parts.

More romantically, it was a nod to the spirit of 1920s and 1930s air racing in which Rolls-Royce was a major player, and a way of inspiring young people to get into aviation.

Nobody thinks that long-haul jumbo jets will be making all-electric journeys any time soon but engineers intend for the Spirit of Innovation to be the precursor for a fleet of electric air taxis and medical shuttles.

Is that not a helicopter? No, says Mr Parr – the Rolls-Royce version is safer, quieter, cheaper and more manoeuvrable, as well as offering a zero-emission option that could be charged in 20 to 30 minutes on the tarmac.

Insiders see opportunities in shuttling across Norwegian fjords – helpfully, the Nordic country has abundant hydroelectric power – or in hopping across remote Scottish islands for the short journeys typical of small planes.

Rolls-Royce will have more to say at Farnborough on its longer-term sustainability plans, but a separate division of the company is looking at miniature nuclear reactors, and its own operations are meant to reach net zero by 2030.

“We are involved in all the disruptive technology which will play a role in the future of aviation,” Mr Cholerton said.

COMPANY PROFILE

Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed 

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UAE currency: the story behind the money in your pockets
War 2

Director: Ayan Mukerji

Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana

Rating: 2/5

The alternatives

• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.

• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.

• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.

2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.

• PayPal is probably the best-known online goods payment method - usually used for eBay purchases -  but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.

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Red flags
  • Promises of high, fixed or 'guaranteed' returns.
  • Unregulated structured products or complex investments often used to bypass traditional safeguards.
  • Lack of clear information, vague language, no access to audited financials.
  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
  • Hard-selling tactics - creating urgency, offering 'exclusive' deals.

Courtesy: Carol Glynn, founder of Conscious Finance Coaching

Tearful appearance

Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday. 

Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow. 

She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.

A spokesman said her upset demeanour was due to a personal matter.

Paris%20Agreement
%3Cp%3EArticle%2014%3C%2Fp%3E%0A%3Cp%3E1.%20%5BThe%20Cop%5D%20shall%20periodically%20take%20stock%20of%20the%20implementation%20of%20this%20Agreement%20to%20assess%20the%20collective%20progress%20towards%20achieving%20the%20purpose%20of%20this%20Agreement%20and%20its%20long-term%20goals%20(referred%20to%20as%20the%20%22global%20stocktake%22)%3C%2Fp%3E%0A%3Cp%3E2.%20%5BThe%20Cop%5D%20shall%20undertake%20its%20first%20global%20stocktake%20in%202023%20and%20every%20five%20years%20thereafter%C2%A0%3C%2Fp%3E%0A

Small Victories: The True Story of Faith No More by Adrian Harte
Jawbone Press

The%20specs%3A%202024%20Mercedes%20E200
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%20four-cyl%20turbo%20%2B%20mild%20hybrid%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E204hp%20at%205%2C800rpm%20%2B23hp%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E320Nm%20at%201%2C800rpm%20%2B205Nm%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E9-speed%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E7.3L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENovember%2FDecember%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh205%2C000%20(estimate)%3C%2Fp%3E%0A
The specs

Engine: 4.0-litre V8 twin-turbocharged and three electric motors

Power: Combined output 920hp

Torque: 730Nm at 4,000-7,000rpm

Transmission: 8-speed dual-clutch automatic

Fuel consumption: 11.2L/100km

On sale: Now, deliveries expected later in 2025

Price: expected to start at Dh1,432,000

Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

PAST 10 BRITISH GRAND PRIX WINNERS

2016 - Lewis Hamilton (Mercedes-GP)
2015 - Lewis Hamilton (Mercedes-GP)
2014 - Lewis Hamilton (Mercedes-GP)
2013 - Nico Rosberg (Mercedes-GP)
2012 - Mark Webber (Red Bull Racing)
2011 - Fernando Alonso (Ferrari)
2010 - Mark Webber (Red Bull Racing)
2009 - Sebastian Vettel (Red Bull Racing)
2008 - Lewis Hamilton (McLaren)
2007 - Kimi Raikkonen (Ferrari)

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%3Cp%3EDirector%3A%20Colin%20Trevorrow%3C%2Fp%3E%0A%3Cp%3EStars%3A%20Sam%20Neill%2C%20Laura%20Dern%2C%20Jeff%20Goldblum%2C%20Bryce%20Dallas%20Howard%2C%20Chris%20Pratt%3C%2Fp%3E%0A%3Cp%3ERating%3A%204%2F5%3C%2Fp%3E%0A
THE SPECS

Engine: 4.0L twin-turbo V8

Gearbox: eight-speed automatic

Power: 571hp at 6,000rpm

Torque: 800Nm from 2,000-4,500rpm

Fuel economy, combined: 11.4L/100km

Price, base: from Dh571,000

On sale: this week

TCL INFO

Teams:
Punjabi Legends 
Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq
Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi
Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag
Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC
Colombo Lions Owners: Sri Lanka Cricket; Key player: TBC
Kerala Kings Owners: Hussain Adam Ali and Shafi Ul Mulk; Key player: Eoin Morgan

Venue Sharjah Cricket Stadium
Format 10 overs per side, matches last for 90 minutes
When December 14-17

Score

Third Test, Day 2

New Zealand 274
Pakistan 139-3 (61 ov)

Pakistan trail by 135 runs with 7 wickets remaining in the innings

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EKinetic%207%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202018%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Rick%20Parish%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Abu%20Dhabi%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Clean%20cooking%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%2410%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Self-funded%3C%2Fp%3E%0A

Pearls on a Branch: Oral Tales
​​​​​​​Najlaa Khoury, Archipelago Books

UAE gold medallists:

Omar Al Suweidi (46kg), Khaled Al Shehhi (50kg), Khalifa Humaid Al Kaabi (60kg), Omar Al Fadhli (62kg), Mohammed Ali Al Suweidi (66kg), Omar Ahmed Al Hosani (73), all in the U18’s, and Khalid Eskandar Al Blooshi (56kg) in the U21s.

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Developer: Ubisoft Montreal / Ubisoft Toronto
Publisher: Ubisoft
Platforms: Playstation 4, Xbox One, Windows
​​​​​​​Release Date: April 10

Getting there
Flydubai flies direct from Dubai to Tbilisi from Dh1,025 return including taxes

RESULTS

Mumbai Indians 181-4 (20 ovs)
Kolkata Knight Riders 168-6 (20ovs)

Mumbai won by 13 runs

Rajasthan Royals 152-9 (20 ovs)
Kings XI Punjab 155-4 (18.4 ovs)

Kings XI Punjab won by 6 wickets

MATCH INFO

Tottenham Hotspur 1
Kane (50')

Newcastle United 0

MATCH INFO

Kolkata Knight Riders 245/6 (20 ovs)
Kings XI Punjab 214/8 (20 ovs)

Kolkata won by 31 runs

Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

On sale: Now

Price: From Dh590,000

The biog

First Job: Abu Dhabi Department of Petroleum in 1974  
Current role: Chairperson of Al Maskari Holding since 2008
Career high: Regularly cited on Forbes list of 100 most powerful Arab Businesswomen
Achievement: Helped establish Al Maskari Medical Centre in 1969 in Abu Dhabi’s Western Region
Future plan: Will now concentrate on her charitable work

The specs: 2018 BMW X2 and X3

Price, as tested: Dh255,150 (X2); Dh383,250 (X3)

Engine: 2.0-litre turbocharged inline four-cylinder (X2); 3.0-litre twin-turbo inline six-cylinder (X3)

Power 192hp @ 5,000rpm (X2); 355hp @ 5,500rpm (X3)

Torque: 280Nm @ 1,350rpm (X2); 500Nm @ 1,520rpm (X3)

Transmission: Seven-speed automatic (X2); Eight-speed automatic (X3)

Fuel consumption, combined: 5.7L / 100km (X2); 8.3L / 100km (X3)

England Test squad

Joe Root (captain), Moeen Ali, James Anderson, Jonny Bairstow (wicketkeeper), Stuart Broad, Jos Buttler, Alastair Cook, Sam Curran, Keaton Jennings, Dawid Malan, Jamie Porter, Adil Rashid, Ben Stokes.

Museum of the Future in numbers
  •  78 metres is the height of the museum
  •  30,000 square metres is its total area
  •  17,000 square metres is the length of the stainless steel facade
  •  14 kilometres is the length of LED lights used on the facade
  •  1,024 individual pieces make up the exterior 
  •  7 floors in all, with one for administrative offices
  •  2,400 diagonally intersecting steel members frame the torus shape
  •  100 species of trees and plants dot the gardens
  •  Dh145 is the price of a ticket
The specs
Engine: 2.4-litre 4-cylinder

Transmission: CVT auto

Power: 181bhp

Torque: 244Nm

Price: Dh122,900 

Results

6pm: Dubai Trophy – Conditions (TB) $100,000 (Turf) 1,200m 

Winner: Silent Speech, William Buick (jockey), Charlie Appleby
(trainer) 

6.35pm: Jumeirah Derby Trial – Conditions (TB) $60,000 (T)
1,800m 

Winner: Island Falcon, Frankie Dettori, Saeed bin Suroor 

7.10pm: UAE 2000 Guineas Trial – Conditions (TB) $60,000 (Dirt)
1,400m 

Winner: Rawy, Mickael Barzalona, Salem bin Ghadayer 

7.45pm: Al Rashidiya – Group 2 (TB) $180,000 (T) 1,800m 

Winner: Desert Fire, Hector Crouch, Saeed bin Suroor 

8.20pm: Al Fahidi Fort – Group 2 (TB) $180,000 (T) 1,400m 

Winner: Naval Crown, William Buick, Charlie Appleby 

8.55pm: Dubawi Stakes – Group 3 (TB) $150,000 (D) 1,200m 

Winner: Al Tariq, Pat Dobbs, Doug Watsons 

9.30pm: Aliyah – Rated Conditions (TB) $80,000 (D) 2,000m 

Winner: Dubai Icon, Patrick Cosgrave, Saeed bin Suroor  

Emergency

Director: Kangana Ranaut

Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry 

Rating: 2/5

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Updated: July 08, 2022, 1:22 PM`