Leaner and determined to be greener, Rolls-Royce’s jet engine empire is raring to go as the air industry prepares to put the dark days of the pandemic behind it and put the throttle back on at Britain’s Farnborough Airshow this month.
The aerospace giant has used the crisis to carry out what one top executive called the biggest restructuring in its history, saving £1.3 billion ($1.6bn) by combining assembly lines, rethinking supply chains and cutting 8,700 jobs.
But its engineers were nothing but ambitious when The National toured the Rolls-Royce plant in Derby, with eggs being laid in almost every imaginable aviation basket from electric air taxis to smart engines to power washers.
“Now we are getting the fruits of the restructuring for the growth phase we are in,” said Sebastian Resch, the head of operations for Rolls-Royce’s civil aviation division.
Although the economic earthquake of Covid-19 has not completely settled down, passenger numbers are rising again as the aviation world returns to Farnborough and there are signs of growing optimism in the industry.
Meanwhile, investors are eager to hear what the jet engine business is doing to bring down its carbon emissions, as the richer world races to clean up its act by mid-century.
“We see ourselves very much as part of the solution,” said Matheu Parr, whose team works in the young but promising field of electric aircraft.
Collapse and comeback
The pandemic threw the air industry into its worst crisis in modern times as tourism ground to a standstill and business travellers turned to Zoom, sending demand for international flights collapsing by more than three quarters.
That was bad news for Rolls-Royce because it likes to sell engines under a subscription service in which airlines pay by the hour – so no flying hours, no revenue, and the company lost £4 billion in 2020.
The British manufacturer is the sole supplier for the Airbus A350 and has a sizeable market share on other flagship models such as the A380 and the Boeing 787.
As part of its slimming down process, it turned three assembly lines into one and moved production in Singapore back to Derby, where six or seven engines a week are prepared for passenger aircraft.
The company makes about a quarter of its materials in-house, such as ultra-strong turbine blades ready to withstand 12,000 revolutions per minute, and made in an increasingly automated process with robots doing heavy lifting.
For the parts it cannot make itself, Rolls-Royce has narrowed down its suppliers to a small group of what it regards as high-quality providers and signed long-term deals for the next decade.
We’re concentrating on being a leaner, more efficient business
Chris Cholerton
About $100,000 was saved by reducing costs on repairs of Trent XWB-84 engines, said staff at Rolls-Royce, where about 1,400 people work in maintenance and try to keep engines in their money-making “on-wing” position.
Mr Resch said the company had reduced losses on new engines by 35 per cent despite the volume of sales falling, and broken even if spare engines are included in the equation.
Pent-up demand for air travel is there – the long summer holiday queues at airports are a testament to that – although continuing restrictions in China represent what civil aerospace chief Chris Cholerton calls a handbrake on recovery.
Engineers have also been learning lessons from the debacle of the Trent 1000 engine, a component of Boeing 787s that was found to have cracks and other problems and led to what Mr Cholerton called “awful disruption”.
Rolls-Royce took a “huge reputational hit” from those problems, he said, and although most of the issues have been fixed there are two that have not yet been fully signed off by regulators.
Although it is not immune to supply-chain problems and labour shortages, Rolls-Royce is a prestigious name (although luxury cars are a separate company entirely) and 70 recent job openings attracted 1,300 applicants.
Some savings were afoot before the coronavirus arrived but “a crisis like the pandemic is a very good catalyst”, said Mr Cholerton. “We’re concentrating on being a leaner, more efficient business.”
Clean fuels
Rolls-Royce has already gone public with its ambitions for sustainable aviation fuels, which are made from plant or animal matter and mixed with regular jet fuel.
The big advantage of these blends is that they can be dropped into existing jet engines without engineers needing to fundamentally rework an aircraft as they do with electrics.
That makes SAF the low-emission solution “as far as the eye can see”, said engineer Simon Burr, although longer-term options are being enthusiastically studied.
SAF is more expensive than traditional jet fuel but Rolls-Royce wants to drive up demand by testing 100 per cent sustainable blends that are not currently approved for the market and would need to be compatible with fuel lorries.
“What we are trying to do is signal that you can invest with confidence,” said Mr Burr, who said French and Asian cooking oils had been tried in testing and that sustainable variants did not have the bad odour of jet fuel.
Rolls-Royce had planned to display one of the jewels in its collection, the all-electric, single-seater aircraft Spirit of Innovation, at the cancelled Farnborough show in 2020 but can now show it off as a world record-breaking item.
The plane is “the fastest electric anything on the planet”, said Mr Parr from the electrics department, having flown at a pace of 555 kilometres per hour to set the record for a 5km distance.
With a battery pack powerful enough to charge your phone every day for 20 years, the “flying battery with a pilot attached”, as some engineers jokingly called it, was intended to start generating a supply chain for electric plane parts.
More romantically, it was a nod to the spirit of 1920s and 1930s air racing in which Rolls-Royce was a major player, and a way of inspiring young people to get into aviation.
Nobody thinks that long-haul jumbo jets will be making all-electric journeys any time soon but engineers intend for the Spirit of Innovation to be the precursor for a fleet of electric air taxis and medical shuttles.
Is that not a helicopter? No, says Mr Parr – the Rolls-Royce version is safer, quieter, cheaper and more manoeuvrable, as well as offering a zero-emission option that could be charged in 20 to 30 minutes on the tarmac.
Insiders see opportunities in shuttling across Norwegian fjords – helpfully, the Nordic country has abundant hydroelectric power – or in hopping across remote Scottish islands for the short journeys typical of small planes.
Rolls-Royce will have more to say at Farnborough on its longer-term sustainability plans, but a separate division of the company is looking at miniature nuclear reactors, and its own operations are meant to reach net zero by 2030.
“We are involved in all the disruptive technology which will play a role in the future of aviation,” Mr Cholerton said.
Dubai Rugby Sevens
November 30-December 2, at The Sevens, Dubai
Gulf Under 19
Pool A – Abu Dhabi Harlequins, Jumeirah College Tigers, Dubai English Speaking School 1, Gems World Academy
Pool B – British School Al Khubairat, Bahrain Colts, Jumeirah College Lions, Dubai English Speaking School 2
Pool C - Dubai College A, Dubai Sharks, Jumeirah English Speaking School, Al Yasmina
Pool D – Dubai Exiles, Dubai Hurricanes, Al Ain Amblers, Deira International School
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Specs – Taycan 4S
Engine: Electric
Transmission: 2-speed auto
Power: 571bhp
Torque: 650Nm
Price: Dh431,800
Specs – Panamera
Engine: 3-litre V6 with 100kW electric motor
Transmission: 2-speed auto
Power: 455bhp
Torque: 700Nm
Price: from Dh431,800
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
UAE currency: the story behind the money in your pockets
Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
Opening weekend Premier League fixtures
Weekend of August 10-13
Arsenal v Manchester City
Bournemouth v Cardiff City
Fulham v Crystal Palace
Huddersfield Town v Chelsea
Liverpool v West Ham United
Manchester United v Leicester City
Newcastle United v Tottenham Hotspur
Southampton v Burnley
Watford v Brighton & Hove Albion
Wolverhampton Wanderers v Everton
Global state-owned investor ranking by size
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UAE
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Norway
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Canada
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Three-day coronation
Royal purification
The entire coronation ceremony extends over three days from May 4-6, but Saturday is the one to watch. At the time of 10:09am the royal purification ceremony begins. Wearing a white robe, the king will enter a pavilion at the Grand Palace, where he will be doused in sacred water from five rivers and four ponds in Thailand. In the distant past water was collected from specific rivers in India, reflecting the influential blend of Hindu and Buddhist cosmology on the coronation. Hindu Brahmins and the country's most senior Buddhist monks will be present. Coronation practices can be traced back thousands of years to ancient India.
The crown
Not long after royal purification rites, the king proceeds to the Baisal Daksin Throne Hall where he receives sacred water from eight directions. Symbolically that means he has received legitimacy from all directions of the kingdom. He ascends the Bhadrapitha Throne, where in regal robes he sits under a Nine-Tiered Umbrella of State. Brahmins will hand the monarch the royal regalia, including a wooden sceptre inlaid with gold, a precious stone-encrusted sword believed to have been found in a lake in northern Cambodia, slippers, and a whisk made from yak's hair.
The Great Crown of Victory is the centrepiece. Tiered, gold and weighing 7.3 kilograms, it has a diamond from India at the top. Vajiralongkorn will personally place the crown on his own head and then issues his first royal command.
The audience
On Saturday afternoon, the newly-crowned king is set to grant a "grand audience" to members of the royal family, the privy council, the cabinet and senior officials. Two hours later the king will visit the Temple of the Emerald Buddha, the most sacred space in Thailand, which on normal days is thronged with tourists. He then symbolically moves into the Royal Residence.
The procession
The main element of Sunday's ceremonies, streets across Bangkok's historic heart have been blocked off in preparation for this moment. The king will sit on a royal palanquin carried by soldiers dressed in colourful traditional garb. A 21-gun salute will start the procession. Some 200,000 people are expected to line the seven-kilometre route around the city.
Meet the people
On the last day of the ceremony Rama X will appear on the balcony of Suddhaisavarya Prasad Hall in the Grand Palace at 4:30pm "to receive the good wishes of the people". An hour later, diplomats will be given an audience at the Grand Palace. This is the only time during the ceremony that representatives of foreign governments will greet the king.