Rolls to power new Boeing 737

AEROSPACE engineering group Rolls-Royce is on course to clinch a huge deal to provide engines for the next generation of Boeing's best-selling 737 jet.

At present, the plane's engines are made exclusively by CFM, a joint venture between America's General Electric and Snecma of France.

But it is understood that Boeing engineers planning a new-generation 737, which could come into service between 2012 and 2014, believe airlines prefer a choice of two engine types.

Boeing believes there is a market for more than 15,000 jets the size of the 737, which can carry up to 180 passengers.

The favoured suppliers for the new plane are thought to be CFM and the IAE consortium. Rolls-Royce and US engine maker Pratt & Whitney each has 32.5% of IAE while the rest is owned by Japanese Aero Engine Corporation and MTU Aero Engines of Germany.

While Derby-based Rolls-Royce has about 30% of the big-engine market with its Trent units, it lags behind rivals in the smaller-engine market. Charles Armitage, aviation analyst at investment bank Merrill Lynch, said a deal would give IAE a 50% share of the engine market for twin-engined jets.

Boeing chairman Lew Platt confirmed that the company was looking at building a newgeneration 737, but said no decision had been made.

There could be further good news for Rolls-Royce next month after Platt confirmed that Boeing would make an announcement on whether to replace the ageing 747 with a newer, larger '747 Advanced'.

This plane would be powered with new, highly efficient engines. And with Rolls-Royce already making them for the new mediumto-large Boeing 787 ' Dreamliner', it would be in a powerful position to provide engines for the Advanced.