India withdraws tender for newer Jaguar combat jet engine

19 May, 2011

NEW DELHI: The defence ministry has withdrawn its tender for re-engining the Indian Air Force’s Jaguar combat jets after one of the two contenders opted out, a leading defence journal says.

The Request for Proposal (RfP), as the tender is known in technical parlance, was issued to Honeywell, which had offered its F-125IN engine and Rolls Royce, whose Adour-811 has powered the Jaguar’s since their induction in the IAF in the late 1970s, India Strategic defence magazine (www.indiastrategic.in) reports in its current edition.

The IAF would now have to submit a fresh proposal to the defence ministry, which will then issue another tender. This process is expected to take about a year.

The IAF has about 125 Jaguars, described as a deep penetration strike aircraft (DPSA). Given the evolving battlefield scenarios, the engine is regarded as underpowered to meet current requirements. A decision was taken a few years back to install more powerful engines to utilize the residual life of the airframe, and an RfP was issued on November 26, 2010.

The two companies were given time till April 22 to submit the RfPs.

But Rolls Royce recently withdrew from the competition, saying it had previously offered to upgrade the Adour-811 to the Adour-821 while the RfP was for re-engining. There was, however, no official word from the company.

The resultant single vendor situation forced the defence ministry to cancel the RfP, with the decision being communicated March 28.

The Adour-821 powers the Hawk advanced jet trainer ( AJT )), which both the IAF and the Indian Navy are already buying. Privately, Rolls Royce sources say that a single engine for the Jaguar and Hawk fleets would be cost-effective in maintenance terms.

Honeywell has countered that its engine is technically superior.

« Our F-125IN engine generates 30 percent more thrust than the competition, and we do hope that our technical superiority will be our winning edge, » Pritam Bhavnani, president of Honeywell Aerospace India , said.

However, if the IAF chooses to go ahead with only one engine maker, then it will to go through the government concerned to either buy the engine in an FMS (foreign military sale)-type deal or on commercial terms from the company concerned.

Bhavnani said that Honeywell was supposed to give a demonstration to the IAF as part of the selection process after the RfPs were submitted. Although the RfP has been withdrawn, Honeywell is continuing work to fine-tune the engine for this demonstration as and when it takes place.

« We are ready when IAF is and we will prove the operational advantages of the F-125IN engine, » he added. Honeywell has already tested the engine on an old Jaguar aircraft.

Significantly, Bhavnani also said that Honeywell was ready to share high levels of technologies with India, be they on aircraft or other systems.

Source: Economic Times

Rolls-Royce Wins First Order from TransAsia

Rolls-Royce, the global power systems company, has won its first order from Taiwanese airline TransAsia Airways.

The airline has selected Trent 700 engines and TotalCare long-term service support worth a total of $150m. The engines will power two Airbus A330 aircraft to be delivered in 2012/2013.

Vincent Lin, Chairman, TransAsia Airways, said: “As we enter a new era with our first widebody aircraft, we selected the Trent 700 for its proven performance and payload advantages coupled with the comprehensive maintenance cost assurance that TotalCare brings. These factors made Rolls-Royce the right choice for TransAsia Airways.”

Phil Harris, Rolls-Royce, Senior Vice President – Civil Aerospace, said: “TransAsia Airways is well placed to benefit from growth in the Taiwanese aviation market. We are delighted the airline will be joining our family of Trent operators, selecting market-leading Trent 700 technology and support.”

The Trent 700 is the only engine specifically designed for the A330 aircraft and produces the lowest emissions of all engines available on the aircraft. More than 1,300 Trent 700s are now in service or on firm order, having captured over 75 per cent of orders in the last three years.

TotalCare long-term service agreements, in place on 90 per cent of Trent engines, are designed to minimise customer financial risk and enhance operational performance and reliability, allowing operators to concentrate on their core business.

Airbus to deliver over 20 A380s in 2011: EADS

Posted: 13 May 2011

PARIS : European planemaker Airbus expects to deliver more than 20 A380 superjumbo airliners this year, its parent company EADS said on Friday, having previously forecast only 18.

« We still expect to be in the mid-twenties and at least above 20, » EADS finance director Hans-Peter Ring told reporters in a conference call.

On May 5, an Airbus spokesman had only spoken of matching last year’s 18 deliveries.

Production of Airbus’s flagship, the world’s biggest passenger airliner, was disrupted by modifications that became necessary after a Rolls Royce engine on a Qantas A380 exploded in flight on November last year.

Only five of the planes were delivered in the first four months of 2011, but Ring said the company’s plant was getting back up to speed.

Ring added that Airbus would make a decision in the coming days on ramping up production of its smaller A320.

It aims to make 40 of them a month by the first quarter of 2012 and might raise that as high as 44 later that year.

The European defence giant EADS which owns Airbus meanwhile said it slipped into the red in the first quarter of this year due to the low level of the dollar against the euro, which hurts export sales.

In a quarterly earnings statement released, EADS recorded a net loss of 12 million euros (US$17 million), down from profit of 103 million euros in the same period of 2010, but said it still had « a good start to 2011 » overall.

Source: AFP

Souriau prêt à se rapprocher de l’américain Esterline

05/05/11 | 18:14 | Ingrid Francois

Le fonds Sagard est entré en négociation exclusive avec l’américain Esterline pour lui céder Souriau, champion français de la connectique dans l’aéronautique.

Important fournisseur de l’aéronautique, Souriau est prêt à passer sous pavillon américain. Son actionnaire, le fonds d’investissement Sagard, est entré en négociations exclusives avec le groupe Esterline en vue d’une cession prévue d’ici juillet. L’opération s’effectuerait pour un montant de 483 millions d’euros, soit un multiple de 11 fois l’excedent brut d’exploitation attendu cette année.

Ancienne filiale de Framatome Connectors International (FCI), Souriau fabrique des connecteurs dédiés aux applications industrielles, aéronautiques, militaires et spatiales. Ce groupe basé à Versailles compte pour clients des entreprises comme Airbus, Boeing, EADS, Bombardier, Safran, Thales, ou encore Rolls Royce. Sagard l’avait racheté pour 220 millions d’euros en 2006, grâce, notamment, à l’appui de la famille Dassault, à la fois souscripteur du fonds d’investissement et grand client de Souriau.

Après avoir connu une forte croissance de 2005 à 2008, l’équipementier a traversé des années plus difficiles et son chiffre d’affaires, ainsi que sa rentabilité, ont reculé pendant deux années de suite. L’exercice fiscal en cours devrait marquer un net rebond des ventes. Souriau prévoit de réaliser à fin juin un chiffre d’affaires de 238 millions d’euros, en hausse de 18 % par rapport à l’année dernière. Sagard a jugé fin 2010 que le moment était venu pour vendre. L’investisseur a alors cherché, par l’intermédiaire de la banque Rothschild, une solution pour se désengager.

Le rapprochement avec Esterline, qui veut en faire une nouvelle plate-forme au sein de sa division capteurs et systèmes, devrait lui donner « des moyens financiers considérablement accrus pour participer à la consolidation du secteur de la connectique et accélérer sa croissance », selon le communiqué. L’industriel américain, également présent dans la défense et l’aéronautique, a réalisé une trentaine d’acquisitions depuis quinze ans, lui permettant d’atteindre un chiffre d’affaires de 1,6 milliard de dollars

IN.F.

Source: Les échos

GE Response to Department of Defense “Stop Work” Order on GE/Rolls-Royce F136 Engine for the Joint Strike Fighter

March 24, 2011

EVENDALE, Ohio–(BUSINESS WIRE)–The GE/Rolls-Royce Fighter Engine Team received a “Stop Work” order from the Department of Defense instructing the team to stop efforts on the F136 for 2011 once the current funding runs out at the end of March.

While the F136 development contract contains a “stop work” clause, we are disappointed that DoD took this unilateral action before Congress has completed its work on the fiscal year 2011 budget.

However, we are not deterred by this decision. We feel so strongly about this issue, as do our Congressional supporters, that we will, consistent with the stop work directive; self-fund the F136 program through this 90-day stop work period.

We are fully committed to delivering a better engine for the F-35 program, and have no intention of abandoning the warfighter and taxpayers.

Everyone knows competition saves money. Our supporters in Congress are more determined than ever, and are encouraging us to press the merits of our case.

We will not walk away from a $3 billion taxpayer investment and your hard work to deliver what the Senate has called a “near model program.” The F136 engine is meeting or exceeding performance expectations, is demonstrating significant advantages over the Pratt & Whitney engine, and is nearly complete.

The F135 has racked up $3.4 billion in cost overruns with continued delays and technical issues. Just last week, House hearings confirmed that the P&W engine has not met required testing for the JSF flight envelope after four years.

These issues won’t fix themselves. Only competition creates performance based rewards and delivers better and better capability … it’s just that simple. Mischaracterizing the F136 as “redundant” does not support our founding principles of competition and excellence which are at the core of the US military.

We are gratified that several House and Senate leaders, who will convene in early April to complete the FY2011 budget process, are determined supporters of competing JSF engines for a myriad of financial and security reasons.

GE Aviation, an operating unit of GE (NYSE: GE), is a world-leading provider of jet and turboprop engines, components and integrated systems for commercial, military, business and general aviation aircraft. GE Aviation has a global service network to support these offerings. For more information, visit us at www.ge.com/aviation. Follow GE Aviation on Twitter at http://twitter.com/GEAviation and YouTube at http://www.youtube.com/user/GEAviation.

BAE Systems Wins Major Fokker 100 Remarketing Mandate from Avianca-Taca Group

23 Mar 2011 | Ref. 053/2011

Hatfield, Hertfordshire – BAE Systems has been selected by AviancaTaca – one of Latin America’s largest airline groupings – to exclusively remarket Fokker 100 jet airliners for sale.

The Fokker 100s, built between 1992 and 1994, will be released on a planned and gradual basis for remarketing from now through to June 2012.

This important mandate builds upon the performance of BAE Systems in successfully remarketing eight Boeing MD83 jet airliners on behalf of Avianca.

The Fokker 100 is a 100-seat passenger airliner, built by Fokker in the Netherlands between 1988 and 1996 during which time 277 aircraft were delivered to customers. Most of the aircraft built were powered by twin Rolls-Royce Tay 650-15 engines, which is the engine type fitted to AviancaTaca’s aircraft. At present there are 170 Fokker 100s in service with 33 different operators.

Hamish Davidson, Executive Vice President Business Development for BAE Systems Asset Management said today: “We are excited to once again work with Avianca, with whom we have developed a close business relationship through our remarketing of their MD83 fleet. This is one of the most significant mandates we have been awarded and reflects our strong capability to deliver the required marketing campaign.”

In addition to these Fokker 100s, BAE Systems’ Asset Management team has current mandates to remarket a further 24 aircraft on behalf of various owners worldwide.

About AviancaTaca

AviancaTaca is a group of leading airlines in Latin America. With a modern fleet of 150 short, medium and long range aircraft and an exceptional team comprised of more than 13,000 employees, AviancaTaca directly services over 100 destinations in America and Europe, which connects to over 750 destinations worldwide through its partner airlines around the globe. Its multi-hub operating model offers passengers diverse and convenient flight options through Bogotá, Colombia; San Salvador, El Salvador; Lima, Peru and San Jose, Costa Rica

New Fokker To Be Powered By BR725

Mar 18, 2011

By Leithen Francis

NG Aircraft, the company behind the new Fokker 70/100NG, is planning to have the aircraft powered by Rolls-Royce BR725s, the same engine type that powers the Gulfstream G650.

Industry executives close to NG Aircraft say the airframer has chosen the BR725; however, NG Aircraft’s managing director, Maarten van Eeghen, declined to confirm this when contacted by Aviation Week. “I’m not able to divulge this as we are still in final negotiations,” he says.

One industry executive says van Eeghen may be reluctant to comment publicly on this issue, because even though the aircraft maker may have made a decision internally, it still needs to secure commitments from the engine maker for product support.

But the fact that the BR725 already powers the Gulfstream G650 and an earlier variant of the engine powers the Gulfstream G550 and Bombardier Global Express means this engine type is well-supported. There are maintenance, repair and overhaul firms in markets around the world certified to do light and heavy maintenance checks on the BR710 and will be certified to work on the BR725.

Gulfstream also speaks very highly of the BR725. The U.S. aircraft maker’s senior VP-marketing and sales, Larry Flynn, says the engine is about 10% more fuel-efficient than the variant used on the G550. He also says the engine type is well supported by Rolls-Royce, which has a power-by-the-hour program.

Rolls-Royce has a strong historical association with Fokker. Rolls-Royce Tay engines power the original Fokker 70 and Fokker 100. Other Fokker aircraft, such as the F27 and F28, are also powered by Rolls-Royce.

NG Aircraft’s decision gives a major boost to Rolls-Royce’s commercial narrowbody engine business, which has suffered some major setbacks recently.

Rolls-Royce is a partner in the International Aero Engines (IAE) consortium, which makes IAE V2500 engines. IAE lost out to Pratt & Whitney on the Bombardier CSeries and Mitsubishi Aircraft MRJ engine selection, and IAE lost out to CFM International on the Commercial Aircraft Corporation of China C919.

Source: AviationWeek

THY AIRLINES ORDERS MORE IAE V2500 ENGINES

Turkish Airlines (THY), the national carrier of Turkey, has again selected the International Aero Engines AG V2500 SelectOne™ engine to power its A320 family aircraft. IAE will deliver 10 firm engines in 2013.

This follow-on order is valued at up to $200 million and will power A321 aircraft.

“We have been very pleased with the exceptional relationship we share with International Aero Engines, as well as the performance of its V2500 engine,” said Mr Hamdi Topçu, Chairman of Turkish Airlines. “It has helped us to maintain our reputation that reinforces our image as a leader in one of the most demanding aviation markets.”

THYs fleet currently operates in Europe, the Middle East, North Africa and the Commonwealth of Independent States (CIS). The airline has been a V2500 operator since 2004 and this is the fourth time they have selected IAE.

“We believe that THY has again expressed its satisfaction with the V2500’s performance through this follow-on agreement,” said Ian Aitken, president of IAE. “This is another example of how our focus on our customer satisfaction, reliability, maintainability and efficiency play a key role in IAE being a leader in the global engine market.”

The V2500 SelectOne™ build standard delivers an additional one percent fuel burn advantage, along with a corresponding reduction in CO2 emissions. It improves time-on-wing by up to 20 percent, and will be compliant with the most stringent CAEP/6 NOx standards. It entered service on schedule in October 2008.

IAE is a multinational aero engine consortium whose shareholders comprise of Pratt & Whitney (NYSE: UTX), Rolls-Royce (RR.L.), Japanese Aero Engines Corporation and MTU Aero Engines. There are more than 5,500 V2500s in service or on firm order with more than 170 customers around the world.

IAE Board of Directors Announces Extension of Collaboration Agreement

EAST HARTFORD, CT — International Aero Engines AG’s (IAE) Executive Board of Directors has announced the extension of its collaboration agreement to 2045. IAE is a multi-national aircraft engine consortium comprised of Pratt & Whitney, Rolls-Royce, Japanese Aero Engines Corporation and MTU Aero Engines.

“We are pleased with the extension of the IAE collaboration agreement to 2045,” said Ian Aitken, IAE’s President and CEO. “Our employees and suppliers have worked diligently to provide best-in-class engine performance, service and support for our V2500 customers.”

At a recent gathering, the IAE shareholders jointly reiterated their commitment to IAE, noting that the organization has provided outstanding engines and support services to global airline customers for over two decades.

“After 27 years, we continue to be the industry leader for the Airbus A320 family of aircraft,” Aitken noted. “Our substantial investment and ability to develop and apply our technology will contribute to our success as we produce these engines for many years to come.”

Formed in 1983, IAE produces the most environmentally friendly and technologically advanced engine in its class, the V2500. With more than 190 customers in over 70 countries around the world, the IAE V2500 continues to attract customers as today’s most cost-effective engine on the A320 family.

The V2500 is available in seven different thrust settings, from 22,000 to 33,000lb, to power the Airbus A319, A320 and A321 family of aircraft, as well as the Airbus Corporate Jetliner. IAE’s in-service fleet has doubled in the last five years and is the third largest engine program currently in production. Nearly 6,500 V2500 engines are in service or on firm order with the worldwide fleet accumulating more than 85 million flying hours.

IAE is a global aero engine consortium whose shareholders are comprised of Pratt & Whitney, Rolls-Royce, Japanese Aero Engines Corporation and MTU Aero Engines.

Source: International Aero Engines

http://iaenews.com/?p=346

Rolls-Royce and Daimler announce joint venture company and intent to launch a public tender offer for Tognum AG

Wednesday, 9 March 2011

  • Combination aims to create a leading global player in the industrial engines market
  • The joint venture strengthens Tognum’s position and establishes a broader range of products, systems and services as well as global sales network
  • Rolls-Royce contributes Bergen gas and diesel medium-speed engine business – further enhancing the growth prospects of Bergen
  • Addressing a global market worth more than €30 billion a year with above average growth
  • Strengthens access to emerging economies
  • Safeguarding jobs and creating new opportunities through shared capabilities and long term investment
  • Attractive offer price of €24 per share for Tognum shareholders. Premium of around 30 per cent above the XETRA closing price of Tognum shares on Friday March, 4th 2011, the last undisturbed trading day before the transaction was rumoured in the markets
  • Daimler’s 28.4 per cent stake in Tognum to be tendered to the offer

(Stuttgart/London) – Daimler AG, the global automotive company and Rolls-Royce Group plc, the global power systems company, announced today that they intend to launch a public tender offer for 100 per cent of the share capital of Tognum AG. The public tender offer is intended to be carried out by a 50:50 joint venture company.

Listed on the Frankfurt Stock Exchange, Tognum AG is a premium supplier of engines, propulsion systems and components for Marine, Energy, Defence, and other industrial applications (often described as “off-highway” applications). Daimler has strong capabilities in engine technology and manufacturing expertise, and exceptional access to global markets. Rolls-Royce has complementary world leading capability in integrated power systems and services, and a well established market presence in the Marine, Energy and Defence sectors.

The proposed joint venture, comprising of Tognum and Bergen, the gas and diesel medium-speed engine business from Rolls-Royce, will offer significant advantages to Daimler, Rolls-Royce and Tognum. The markets in which the joint venture will operate are attractive and fast growing, especially in the developing economies. By combining the strengths and market access of these three world-class companies the joint venture will be able to offer a compelling portfolio of products, services and integrated solutions on a global basis, thus enabling the joint venture to become a world leading engine systems company and creating additional value for shareholders. The partners intend to maintain the current manufacturing sites and are confident that the growth strategy will secure jobs and lead to further opportunities. This may include investment in new state of the art plant and facilities to enable growth and deliver productivity improvements.

Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG, said: “Tognum is an excellent company, and the combination with Daimler and Rolls-Royce creates a win situation for all parties. The planned combination will provide a strong platform to realise the huge market potential. It is an exciting proposition for Daimler to partner with Rolls-Royce to further invest in the Tognum business to create growth for the company and create additional value for our shareholders as well as for the customers and employees of Tognum.”

Sir John Rose, Chief Executive, Rolls-Royce Group plc, said: “This is a significant opportunity to harness the innovation, technology and engineering expertise of Rolls-Royce, Daimler and Tognum. The complementary capabilities we are bringing together will provide us with a world leading proposition, and will enable us to expand the business by developing a broader portfolio of integrated power systems and services for existing and new customers.”

Daimler and Rolls-Royce will offer Tognum shareholders €24 per share in cash representing a total consideration of approximately €3.2 billion. This represents a premium of 30 per cent above the XETRA closing price of Tognum shares on Friday March, 4th 2011, the last undisturbed trading day before the transaction was rumoured in the markets, and a premium of around 22 per cent above the weighted average price of Tognum shares over the three months before the announcement of the transaction. Daimler holds a 28.4 per cent stake in Tognum which will be tendered into the takeover offer at the offer price.

The joint venture allows Daimler to further enhance its shareholding in Tognum. With its engineering and technology competence, Daimler will be a partner in research and development to develop modern and highly efficient engine systems and make a significant contribution to the efforts to meet ever more stringent emission standards. In addition, Tognum will also benefit from leveraging Daimler’s strong global network. Daimler will secure its business relationship with Tognum as an engine supplier and will also continue to add to the Tognum product range with its diesel engines, thus further bolstering its business relationship with Tognum.

Rolls-Royce will contribute its medium speed reciprocating engine business which trades under the Bergen brand name to operate within the new joint venture company. Bergen engines have an outstanding track record for quality and reliability. The portfolio includes diesel and gas powered reciprocating engines which address the marine propulsion and auxiliary power markets. Rolls-Royce also brings a proven capability to deliver complex integrated systems and solutions in these growing markets where customers increasingly require a total solution approach.

The benefits of complementary technologies, a common commitment to innovation, increased focus on systems solutions and through life customer support and broader market access will create considerable growth opportunities. Productivity will be enhanced by the benefits of scale, combining operational capabilities within the venture and delivering improved solutions to the benefit of both customers and shareholders. As such, the combined portfolio will be well positioned to become one of the world’s leading industry players in the Marine, Distributed Power Generation, Offshore Oil & Gas and Industrial applications markets.

Further information on the offer:

The offer will be made subject to clearance by appropriate merger control authorities and achievement of a minimum acceptance threshold of at least 50 per cent plus 1 share (including the 28.4 per cent stake in Tognum to be tendered by the Daimler subsidiary) of the currently issued share capital of Tognum. In addition, the offer will be made on and subject to the terms and conditions to be set out in the offer document.

The shareholder agreement entered into by Daimler and Rolls-Royce, as is customary, contains exit provisions allowing either party to exit the joint venture under certain circumstances, including in the event of a change of control or insolvency of the other partner. Depending on the triggering event, these provisions provide each of the parties the right to exit at cost or fair market value of the venture, subject to any required regulatory consents or approvals. In addition, under certain circumstances, Rolls-Royce could be required to acquire Daimler’s stake in the joint venture at cost subject to certain adjustments.