First Engine Test Expected This Month

Representatives with Rolls-Royce announced Wednesday that Icelandair has selected the Rolls-Royce Trent 1000 engine to power its new fleet of Boeing 787 Dreamliners.

The order -- potentially worth up to US$650 million at list prices (but likely much less at real-world prices) -- is for engines to power two firm aircraft, plus up to five purchase rights. The deal includes a lifetime TotalCare maintenance agreement.

Deliveries are scheduled to begin in 2010.

"Rolls-Royce has provided a solution which is clearly the best option for Icelandair," said Jón Karl Ólafsson, President and CEO of Icelandair. "We are confident the Trent 1000 will deliver competitive cost of ownership with strong reliability levels and, through TotalCare, will be supported by the most comprehensive maintenance service available in the industry today."

Nick Devall, Executive Vice President, Civil Large Engines at Rolls-Royce, added: "The partnership of the Boeing 787 and the Trent 1000 will enable Icelandair to grow its international route network while offering world-best levels of technical efficiency and operating economics. This selection marks the continuation of a long and fruitful relationship between Icelandair and Rolls-Royce."

The Icelandair order brings the number of firm orders for Trent 1000-powered 787s to 87. The engine has also been selected by launch customer ANA (All Nippon Airways), Air New Zealand, Northwest Airlines, LOT Polish Airlines and newly formed leasing company, LCAL.

Icelandair and Rolls-Royce have been working together since 1957 when the airline introduced the Vickers Viscount, powered by Dart engines. Since then, Icelandair has operated a number of Rolls-Royce powered aircraft, including Fokker F27 Friendships (Dart), Canadair CL-44s (Tyne) and Boeing 757s (RB211-535).

The Trent 1000 is the launch engine for the Boeing 787. It will run for the first time this month and is due to make its maiden flight on the Rolls-Royce flying test bed in the first quarter of 2007. Certification is scheduled for Summer 2007, shortly before the 787’s first flight.

FMI: www.rollsroyce.com, www.icelandair.com