The Aero-Engine Business Model: Rolls-Royce’s Perspective

The aero-engine business has developed a business model quite distinct from that of the aircraft manufacturers. This chapter explains the fundamentals of this business, emphasizing how the differences in usage between aircraft structures and aero-engines lead to two quite distinct business models. The importance of life-time in-service support to airlines is explained, as are the different service structures offered to operators. The innovation which enables Rolls-Royce to offer class-leading products and services is also described. It compares the aircraft and engine business models—and illustrates how the two models can operate together, using the newly developed A330neo aircraft and Trent 7000 engine as examples. Finally, we look into the future to further innovation in the business, highlighting technical developments which will reduce fuel burn and operating cost for airlines, and new service structures being developed to ensure engines can be supported in service through the different phases of their operating life.