Rolls-Royce See Stronger Market for Business Jets

12th Oct 2004

Rolls-Royce said today that the market for business jets is on the upturn with stronger
deliveries predicted beginning in 2005 and beyond.  The company projects more
than 500 aircraft deliveries for 2004, on par with 2003 levels.Revealed in the company’s latest business jet forecast—covering the
2004 to 2023 market—the industry is in the beginning of a stronger market
for business aircraft as virtually all of the key market driver indicators
have turned positive and are trending up.
  “Economic indicators, coupled with a reduced inventory of viable used
aircraft and growth of share purchases at fractional companies, support our
increased delivery forecast,” said Ian Aitken, President - Corporate &
Regional Aircraft for Rolls-Royce.
  The age profile of current in-service business jets also shows there will
be a wave of replacement orders through the forecast period.  Almost 40
percent of today’s business jet fleet is 20 years of age or older.
  The Rolls-Royce forecast illustrates a strong market for all sectors
across the business jet landscape over the next 20 years.  The long term
forecast projection shows the need for 23,000 aircraft with a delivery value
of $284 billion for micro-jets through business liners.  For the first time,
Rolls-Royce has projected a new segment called “micro-jets”.  This segment,
comprised of very small four to six seat jet aircraft, is forecast to have
8,000 aircraft deliveries over the projected period.  The traditional business
jet sector is forecast to have 15,000 aircraft deliveries through 2023—up
slightly from the Rolls-Royce 20 year forecast published last year.  While it
is anticipated that all business jet sectors will see growth in deliveries,
the medium to very long-range sector will have two-thirds of aircraft delivery
value over the forecast period.
  Almost 47,000 engines with a delivery value of $60 billion in multiple
engine thrust classes will be required over the forecast period.  The 5,000 lb
and above thrust categories will be responsible for the majority of engine
delivery value.
  The forecast also indicates a rising proportion of new aircraft deliveries
for fractional use relative to the total market.  Today, fractional operators
take delivery of about 10-15 percent of the annual market of business jet
deliveries.  The forecast shows this proportion increasing to as much as 22
percent of the market.
  The North American market is forecast to keep its dominant share of
business jet deliveries while other regions of the world will have higher
growth rates relative to their historical performance as a result of growing
regional economies.
  In 2003, Rolls-Royce won a leading 31 percent market share of the
estimated $1.7 billion market for business jet engine deliveries.  The
Corporate and Regional Aircraft business unit is headquartered at Rolls-Royce
North America in Chantilly, Virginia, near Washington, D.C.
  The forecast is available at:
or at the NBAA show; Rolls-Royce is at Stand 2422, North Hall.


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