R-R's CorporateCare Enhanced Contracts Grow To 100

Rolls-Royce is seeing momentum grow across its engine lineup for its upgraded CorporateCare Enhanced package, company executives have said. The engine maker (Booth X115) unveiled the program during last fall’s NBAA convention and began offering the “Enhanced” version of the fixed-cost maintenance program in January.

In the works for three years, the Enhanced program is “the biggest step change in service that we have ever done under the CorporateCare umbrella,” said Alan Mangels, Rolls-Royce v-p of sales and marketing for business aviation, adding it was so significant the company changed the name.

The program, he added, “was developed by our customers for our customers,” answering two primary pieces of feedback the engine-maker had received. One involved concern that certain elements of troubleshooting that help with engine reliability should be covered. The second request was for Rolls-Royce to cover certain parts of the entire propulsion package that it provides on its larger engines, including nacelles and thrust reversers.

As such, the program adds unlimited troubleshooting and mobile repair services for its engine lines covered under CorporateCare Enhanced. For the Pearl 15, BR710, and BR725 engines, the program further includes maintenance for the whole powerplant system, including nacelle, engine build-up, and thrust reverser unit-related services. Mangels noted that Rolls-Royce does not provide the nacelle packages for the AE 3007 or Tay so it is not able to offer that coverage on those models. But the AE 3007 and Tay are able to benefit from the other Enhanced upgrades.

CorporateCare Enhanced is now the baseline package for new customers but also is offered as an upgrade for existing customers. Within the first few months of being offered, the “Enhanced” package had surpassed 100 service contracts, and new contracts were continuing to come in. Rolls-Royce is finding that nearly half of its contracts are upgrades, Mangels said. While Mangels said that is not a complete surprise since the program was developed in concert with the customer base, he added that it is still satisfying that the upgraded package is resonating with existing contract holders.

Also satisfying is that the mix of contracts is split fairly evenly among the engine types, he said. “We are not seeing any bias toward any engine type,” Mangels said, adding this underscores the importance of all the additional elements, from the unlimited troubleshooting to the coverage of thrust reversers.

Also attractive to customers, he added, is that Rolls-Royce invested $40 million in spares for the additional coverage to ensure aircraft can either continue flying or get back into the air quickly while repairs—which are sometimes lengthy—are ongoing.

In addition to upgrades, Rolls-Royce is capturing contracts from owners/operators who are transferring airplanes, along with new aircraft owners. Traditionally more than 70 percent of newly delivered Rolls-Royce-powered aircraft enroll in the program. Mangels said with the Enhanced package, Rolls-Royce is finding that people who have been on the fence are now opting for the coverage.

Rolls-Royce will get feedback on the response from new contract-holders at a customer event to be held next month. While a significant rollout for Rolls-Royce, Mangels noted that the company will continue to look at service improvements it can offer its customers. “That conversation never stops.”

Brexit Preparations

As it gains momentum with the program, the company has taken steps to ensure its corporate jet engine production and aftermarket services will continue as normal in any Brexit circumstance. “From the services perspective, we have spent a considerable amount of time preparing for both the ‘hard’ and ‘soft’ Brexit. We have been working to get approvals in place with the various aviation authorities, and additional approvals for the Rolls-Royce Deutschland facility,” said Rolls-Royce senior v-p for services for business aviation Andy Robinson.

He added that the company has moved “thousands” of materials and parts from the main UK store to North America and also a new storage facility in Frankfurt. “We are in a good place,” Mangels added.

In addition to 76 authorized service centers worldwide, Roll-Royce has spares stores catering to CorporateCare clients located in Dubai, Singapore, and Beijing—a site that was added in December 2018.

Similarly, in Dahlewitz, Germany, where the new Pearl 15 engines and BR700 family engines are manufactured, the company has all the materials and approvals buffered and in place with the relevant authorities.