Future of aviation business in Asia still bright despite crisis

DERBY, England (JP): An English aviation executive expresses confidence that the aviation business in Asia has a bright future despite the current slowdown in the economies of the continent.

John Cheffins, managing director of airlines of Rolls-Royce Plc, even predicted that it has the possibility of overtaking Europe and the U.S. as the largest region in the world for air travel over the next 20 years.

Cheffins made the remarks at a luncheon held here in conjunction with the inauguration of the Kuala Lumpur-Manchester flight service by Malaysia Airlines.

The new direct air link served by the Boeing 777 aircraft was launched on March 29.

Cheffins' enthusiastic projection was made based on increased aircraft demand in the period between 1998 and 2017.

He said demand for aircraft in Asia in the period reaches US$500 billion for 5,460 deliveries, as compared to only $370 billion for 5,520 deliveries in North America and $280 billion for 3,950 deliveries in Europe.

"With this in mind we look forward to the new millennium and a continued partnership with Malaysia Airlines as Malaysia continues towards its 20/20 vision."

He warmly welcomed Malaysia Airlines' decision to use Rolls- Royce Trent engines to power its Boeing 777s.

The airlines company has thus far operated nine Boeing 777s in its commercial service since May 1997. The nine are part of its fleet of 15 Boeing 777s, of which two more aircraft will be delivered in June and July this year.

"We look forward to the company expanding its fleet with Trent powered ultra long-range versions of wide-body aircraft to allow non-stop operations to the United States and other destinations."

He said Rolls-Royce, which held a 33 percent share of all civil aviation in 1998, is able to offer a choice of engines for this requirement. On the Airbus A340-500, for example, it has the Trent 500 which will run for the first time next month and for the Boeing 777X it has the Trent 8110, a 110,000 pound thrust version of the engine powering the 777 aircraft.

He said Rolls-Royce now has 87 operators of its large engines in 43 countries, up from only 72 operators in 34 countries in 1995.

Cheffins explained that in the period between 1998 and 2017 there will be demand for 34,800 aircraft, requiring some 83,000 engines valued at about $348 billion.

"Just over 50 percent of the new engines delivered will be for major wide- and narrow-bodied aircraft, with about 25 percent each for regional aircraft and corporate jets."

He said the Trent family is currently competing for over 19,000 engines worth $173 billion, adding that the Trent 500, 700, 800 and future 600 and 900 offer power for variants of all Boeing and Airbus aircraft with over 250 seats.

He further explained that total aircraft in service using the Trent 800 engines alone was 52 at present, of which 14 were operated by Singapore Airlines, 10 by Thai Airlines, nine by Malaysia Airlines, nine others by Emirates Airlines, eight by Cathay Pacific and two by American Airlines.

The Trent 800, claimed to be the best for the Boeing 777, had the highest revenue-earning capability, lowest operating costs and is the most environment-friendly engine, he said.

It had a number of advantages, ranging from lightest power plant in its class, shortest take-off field length, lowest maintenance costs, competitive fuel burn and lowest emissions, he added.

Separately, Bashir Ahmad, vice president of Malaysia Airlines, said that besides its close cooperation with his company, Rolls- Royce has been actively engaged in the military engine business with the Royal Malaysian Air Force.

Rolls-Royce is now seriously looking at going into the aero- engine parts manufacturing field, he said.

"Rolls-Royce's interest in Malaysia is not just testimony of its trust and confidence in Malaysia, but that of a true partner who is helping us achieve our vision of developing our own aerospace industry." (hhr)