The power of partnerships
A Rolls-Royce case study

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Page 2: Civil aerospace market

Rolls Royce 5 Image 2Ten years ago 950 million people travelled by air. Five years ago they numbered 1.1 billion and, by 2009, the total is set to climb to 2.5 billion. The aviation industry provides more than 24 million jobs world wide, while its contribution to the world economy is estimated to rise to $1,800 billion by 2009. Today, one-third of all the world’s manufactured exports are transported by air. Twenty years ago the proportion was just one-tenth.

In the market for large airliners, there are two airframe manufacturers – Airbus Industrie and Boeing. When an airline or aircraft leasing company decides to purchase an aircraft they have to choose which airframe and engines they would like. Because of this, it is vital for Rolls-Royce to develop and maintain relationships not only with the aircraft manufacturers, but also with the end customers – the airlines.

During the 1970s, Rolls-Royce had a single digit market share in the civil aerospace market. The sector continued to be characterised by intense commercial and technical competition from companies such as General Electric and Pratt & Whitney of the USA. Market share could only be increased by making a major investment in developing new engines.

Rolls-Royce | The power of partnerships
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