NZ boost for Rolls-Royce

AEROSPACE group Rolls-Royce today won its first order for its new Trent 1000 engine which will power Boeing's 200-passenger 7E7 Dreamliner plane.

Air New Zealand has chosen the Trent 1000 for its two Dreamliners and has also ordered Rolls-Royce Trent 800 engines for its eight Boeing 777-200ER aircraft.

Rolls-Royce shares edged up 1.75p to 223.5p in early trading.

The fleet upgrade by Air New Zealand marks a NZ$1.35bn (£500m) investment, designed to cut costs and boost capacity by a 20%.

The airline, majority owned by the government since its near-collapse in 2001, said it would acquire eight new Boeing 777-200 ER planes and two of the aerospace giant's new 7E7 Dreamliner jets through a mix of purchases and leases.

Air NZ is upgrading its ageing long-haul fleet to compete with rivals, such as Singapore Airlines, which have newer planes. The Auckland-based airline is also striving to cut costs ahead of an expected onslaught of no-frills competitors closer to home such as Richard Branson's Virgin Blue.

Air New Zealand chief executive and managing director Ralph Norris said: 'Our decision to power the new 7E7 aircraft with the new Rolls-Royce Trent 1000 is a clear signal of where Air New Zealand is positioning itself - as innovative, efficient and committed to delivering the best product to our customers.'

The choice of Rolls-Royce‘s Trent 1000 engines for the mid-sized 7E7s gives the manufacturer a head start in its competition with General Electric to sell engines for the new plane.

Air New Zealand is the second airline to order the 7E7, reputed to be 15% cheaper to run than similar sized planes, but it was the first to specify an engine.

Rolls-Royce is currently in the preliminary design stage of the Trent 1000, which is due for completion by the end of this year.

The first development engine is scheduled to run in 2006, with engine certification by the aviation authorities coming in 2007.

Charles Cuddington, managing director of Rolls-Royce‘s airlines division described the order as a huge vote of confidence in the company‘s Trent programme.

'We're delighted by Air New Zealand's decision to become a first-time Trent operator. Not only have they set the pace with their 7E7 engine selection, they have also placed a significant vote of confidence in the Trent programme overall with their engine choice for the 777s.'