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Mon, Mar 03, 2008

Rolls-Royce Awarded $2.6 Billion Virgin Atlantic Order

Trent 1000 Deal Also Includes Joint Environmental Program

On Monday, Rolls-Royce announced a $2.6 billion order for its Trent 1000 engines and associated services from Virgin Atlantic. The company also revealed it is forming an environmental partnership with the airline to cut carbon emissions.

The Trent 1000 is the launch engine for all versions of the Boeing 787 Dreamliner, which enters service in 2009. The recent order, which includes a full-life TotalCare services agreement, is for Trent 1000s to power up to 43 Boeing 787s and consists of 15 firm aircraft plus eight options and a further 20 purchase rights. Virgin Atlantic is slated to take delivery of its first Trent-powered 787 in 2011.

Rolls-Royce emphasizes the Trent-powered Boeing 787-9 Dreamliner will burn almost 30 percent less fuel than previous generation airliners, resulting in an equivalent reduction in carbon emissions per passenger. The environmental initiative between Rolls-Royce and Virgin Atlantic aims to identify further opportunities to reduce aircraft fuel burn through enhanced engine performance. Actions will be managed within the framework of the TotalCare agreement, under which Rolls-Royce assumes full responsibility for monitoring and maintaining the Trent 1000 fleet.

"Virgin Atlantic has chosen the cleanest possible engines for its more fuel-efficient future with the 787 Dreamliner," said Sir Richard Branson, President of Virgin Atlantic. "Rolls-Royce engines will help us cut emissions per flight by nearly 30 per cent and become the most sustainable airline in the world. Our new environmental partnership will also bring major benefits to the aviation industry, enabling us to work together on researching and developing the most efficient engines in the sky, and continuously improving the fuel burn of our fleet of aircraft."

"This is a vote of confidence in the Trent family by Virgin Atlantic," added James M. Guyette, President & CEO, Rolls-Royce North America. "We share a common agenda to address environmental issues, and the new environmental partnership will help speed up research and development into reducing carbon emissions."

The deal follows in the footsteps of the 787 purchase agreement signed between the airline and Boeing last April -- which, in addition to a pledge to deliver a biofuel for jets, also called for the CEOs of both parties to lose weight. There's no word from Rolls-Royce executives on whether their contract carried similar stipulations... but we'd recommend they check the fine print, just to be sure.

FMI: www.virginatlantic.com, www.rolls-royce.com

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