Search results

Strategic alliances are an important feature of the aerospace industry and many studies have sought to evaluate their performance. Most have taken a policy perspective exploring the economic and political benefits claimed for collaboration of this type. The perspective is a reflection of the political origins of many aerospace alliances. This study seeks to evaluate, from a managerial perspective, one of the newer alliances established on a strictly commercial basis. It focuses on BMW Rolls‐Royce GmbH, one of a small number of truly European alliances. The study concludes that, although Rolls‐Royce bought out its German partner after a decade of operation, the alliance was a success. The two engines developed by the alliance over this period were a technical success, overall sales were well on target and the alliance was about to break even. In addition, the study concludes that the alliance formed a key element in Rolls‐Royce’s successful strategy to extend its product portfolio, a strategy that elevated the company to second place in the global aero engine market.

Rolls‐Royce engines will power the new Boeing 757 airliner. In an order for 40 of these aircraft British Airways and Eastern Air Lines of the United States have selected Rolls‐Royce RB 211–535 engines to power the new twin‐jet. Eastern has also placed an option for a future 24 aircraft. The value of the order to Rolls‐Royce, including options and engine spares over the life of the aircraft, is more than £300 million.

THE SCOPE of Rolls‐Royce (1971) Limited's operation and its international and North American activities can be best understood by a look at some vital statistics.

We are often reminded that we must speculate in order to accumulate. While the more cautious among us may habitually reject such advice, others deem it sound logic that often pays dividends. It has certainly appeared to for UK aerospace giant Rolls Royce, who benefited from a decade‐long alliance with BMW, the German car manufacturer. The competitive strategies employed during this period have boosted a company now savoring even better fortunes than before.

An automated production line using robots is now operational and machining aero‐engine turbine blades at Rolls‐Royce, Derby. It is the first fully automated manufacturing system with robot handling of engine parts to be introduced by Rolls‐Royce. This automated line is more advanced than any other known to be in service in the world aerospace industry. It incorporates creep‐feed grinding machines which have reduced typical grinding cycle times from six minutes to 45 seconds.

Spotlights that strategic alliances are widely used within the aerospace industry and the success of Europe’s Airbus Industrie consortium has been much publicized. Less well‐documented has been the success of some of Europe’s leading engineering companies, such as Rolls‐Royce, Daimler‐Benz and BMW, in supplying aero engines to the world’s airlines. Again collaborative ventures have played an important part in helping these firms to build market share within this highly competitive global market. Reviews the changes that have taken place within both the airframe and the engine sectors of the aerospace industry in recent years. Critically evaluates the part that strategic alliances have played in the increasing commercial success of the European Union in both sectors. Highlights differences in the nature and role of such alliances as well as their impact on the structure of each sector.

THE Rolls‐Royce RB.211 turbofan engine in various ratings is on firm offer for the proposed large three‐engined transport aircraft such as the McDonnell Douglas DC‐10 and the Lockheed 1011 now being designed in the United States. First certificated engines will be available in December 1970, at a basic price of around $½ million varying according to the rating chosen. The engine is also offered for 200‐seat twin engine transports. A typical specification is as follows:

Rolls‐Royce Ltd. designs, develops and manufactures gas turbine engines for aircraft and marine industrial purposes and in 1971 the gas turbine business was reconstructed to continue independently of the motor car and other piston engine manufacture. The British Government is the sole shareholder, but the Company determines its own commercial policy.

THE choice of a version of the Rolls‐Royce Spey to power the new Fokker short haul airliner maintains the close association between the two companies which began more than forty‐seven years ago. The first instance of a Rolls‐Royce engine powering an aircraft of the Royal Netherlands Aircraft Factory was as early as 1920, when a 365 b.h.p. Eagle VIII engine was installed in the Fokker F.111‐W float plane. Following this, a number of other Fokker aircraft were powered by Rolls‐Royce piston engines. With the advent of the gas turbine, the co‐operation continued with the very successful Dart turboprop powered Friendship, well over 400 of which have so far been sold, and is now developing with the selection of the Spey Junior to power the Fellowship.

A THIRD phase contract worth £100,000 to extend an Automatic Data Recording (ADR) system at the Rolls‐Royce engine test facility in Hatfield has been completed by Solartron Systems of Farnborough, Hants. Solartron supplied the original Hatfield data acquisition and processing system for Gem engine experimental testing in 1980 and has already extended and upgraded it once. This latest extension accommodates two test beds for the new Rolls Royce RTM322 engine, which is being developed jointly by Britain and France. The modular design of Solartron hardware readily facilitates extensions to existing systems.