Defence aerospace

A broad and diverse base of customers and products underpinned a resilient performance in 2011. Demand for our products and services, particularly in the military transport sector, held up well. Revenue increased five per cent as a result of an eight per cent increase in OE revenue and a three per cent increase in services revenue.

TP400 engine for Airbus A400M aircraft

We are a major partner in the TP400 engine for the new Airbus A400M large military transport aircraft.

A seven per cent decline in the order book reflects the cautious budgetary environment in many nations. However, new orders of £1.8 billion provides continued confidence that opportunities remain, both in traditional and in developing markets.

Profit grew 22 per cent as a result of increased revenue, cost reduction and the £60 million benefit of termination settlements as a result of the UK MoD’s SDSR.


  • TP400 engine for A400M transporter is certified

  • F-35B LiftSystem™ achieves programme and test milestones

  • US Navy renews Adour F405 support contract

  • 750th EJ200 engine delivered for the Eurofighter programme

Key financial data

  2007 2008 2009 2010 2011
Order book £bn 4.4 5.5 6.5 6.5 6.0
+38% +25% +18% 0% -7%
Engine deliveries 495 517 662 710 814
Underlying revenue £m 1,673 1,686 2,010 2,123 2,235
+4% +1% +19% +6% +5%
Underlying OE revenue £m 796 739 964 1,020 1,102
Underlying service revenue £m 877 947 1,046 1,103 1,133
Underlying profit before 199 223 253 309 376
financing £m +3% +12% +13% +22% +22%

Rolls-Royce is the world’s second largest provider of defence aero-engine products and services, with 18,000 engines in service for 160 customers in 103 countries. Our engines power aircraft in all sectors: transport, combat, reconnaissance, training, helicopters, and unmanned aerial vehicles.


We are a world leader in the military transport market with over 6,700 engines in service.

The global fleet of AE 2100 engines, which powers both the Lockheed Martin C-130J and the Alenia C-27J transport aircraft, continues to expand. The Emirate of Qatar and the Indian Air Force both received their first C-130Js in 2011. The global AE 2100 fleet also passed the three million flight hour milestone during the year.

The TP400 engine for the Airbus A400M military transport aircraft received civil certification from EASA in May 2011 and has amassed over 8,000 flying hours as part of the flight-test programme. Delivery of the engines for the first production aircraft are due to begin in early 2012, part of the initial order of 180 aircraft.

Important milestones were achieved in the T56 upgrade programme for legacy variants of the C-130 and P-3 Orion aircraft. This engine variant provides significant fuel and operating cost savings.


In the combat sector the Rolls-Royce LiftSystem® for the short take-off and vertical landing (STOVL) variant of Lockheed Martin’s F-35 Lightning II Joint Strike Fighter achieved its ‘Initial Service Release’.

In October 2011, two F-35B aircraft accomplished 72 STOVLs on the USS Wasp during a successful three-week testing period of sea trials. In the same month, the first LiftFan™ to be assembled at our new dedicated state-of-the-art factory in Indianapolis, USA, rolled off the production line. In January 2012, probationary status was lifted for the F-35B and the first STOVL aircraft were delivered to the customer.

Funding for the development programme of the F136 engine, in which Rolls-Royce is a 40 per cent partner, for the F-35 Joint Strike Fighter was terminated by the US Department of Defense in February 2011, despite strong continuing Congressional support.

During 2011, we delivered the 750th EJ200 engine on behalf of Eurojet for the Eurofighter programme.

The Eurofighter Typhoon was deployed on combat operations for the first time as part of the NATO operation in Libya, displaying outstanding levels of performance and reliability. The Typhoon is a contender for the KF-X programme in South Korea.

We continue to make good progress on the US Air Force Adaptive Versatile Engine Technology (ADVENT) demonstrator programme. It is designed to significantly reduce fuel consumption, enabling extended mission ranges and loiter times for future generations of military aircraft.

Unmanned vehicles

In the unmanned air systems sector we successfully completed a US Air Force funded flight-test programme for the growth variant of the AE 3007H engine for Global Hawk.

Small engines

GippsAero of Australia selected the M250 turboprop engine to power its new ten seat passenger aircraft, the GA10.

In the helicopter market, the Apache fleet of the UK Army Air Corps, powered by the RTM322 engine, reached 200,000 flying hours.


The success of our services business continued in 2011, with MissionCare™ contracts secured to provide availability-based engine support for the C-130 fleets of the UK and US air forces. The US Navy again renewed its US$100 million support agreement for Adour F405 engines in the T-45 Goshawk trainer.

Rolls-Royce also earned praise for its support of the frontline operations of the UK armed forces air campaign over Libya which involved eight different types of Rolls-Royce powered aircraft.

Dan Korte, President of Defence aerospace

Dan Korte

President –
Defence Aerospace


Underlying revenue 2011


Underlying profit 2011


Strong programme positions supported further robust order flow in 2011...


New order intake during the year was strong, up 15 per cent to £2.1 billion...


Significant demand for our products and services in offshore oil and gas applications...