Business Aviation Market Intelligence

Enhancing Performance Now; Increasing Value in the Future

Enhancing Performance Now; Increasing Value in the Future

With a customer fleet comprised of over 4,000 aircraft and about 8,000 engines, Rolls-Royce Business Aviation has developed a portfolio of services that ensure its globe-hopping customers get the most availability from their aircraft now, and top dollar at resale time.

What a difference two years make. At this time in 2020 travel restrictions caused by the COVID-19 pandemic made business and private aviation’s future look disheartening at best.

But, today, thanks to a variety of reasons, the business jet industry is enjoying a renaissance. Individuals and companies that, 24 months ago, had never dreamed of owning airplanes are buying them in record numbers. And that global upsurge has caught even the most experienced business aviation insiders by surprise.

“We were looking at the wrong things,” says Mesinger Jet Sales president and CEO Jay Mesinger. “What we didn’t understand was the wealth that was going to be created during this pandemic or the absolute disdain people have for getting on the airlines. We also didn’t understand that they would turn that disdain and that wealth into the largest number of first-time buyers ever coming into our industry.”

Many industry leaders believe that these new-generation buyers are entering into aircraft ownership not for its “romance” but for the tangible business benefits that this high-value asset can deliver.

Helping owners get it right the first time

Of course, the parts that most contribute to the asset’s value are its engines. And one of the first lessons aircraft owners learn is that those engines are also the most expensive parts to inspect and repair.

That’s where Rolls-Royce’s CorporateCare® Enhanced (CCE) program can help. Aircraft owners that enroll in the program have the peace of mind of knowing there won’t be any costly surprises when it comes to engine inspection, maintenance, or repairs.

“CorporateCare Enhanced offers substantial financial and operational benefits to customers, including increased availability, asset value, and liquidity,” explains Andy Robinson, SVP Services – Business Aviation at Rolls-Royce. “CCE mitigates maintenance expense by providing protection against the cost of scheduled and unscheduled maintenance to the engines.

“We [Rolls-Royce Business Aviation] are making sure there’s no unforeseen risks for our customers,” she continues. “The customer gets comprehensive coverage for their engine at a predetermined hourly rate per flying hour. This provides budget predictability and transparency.”

“It doesn’t matter if they’re in the first month or the eighth year of the program; we take care of all costs associated with any covered event,” Robinson adds. “CCE covers all scheduled inspections, service bulletins, troubleshooting, spare parts, and even provides lease engines.

“In addition, with the exception of the Tay and AE-series engines, where we don’t provide the engine nacelles, CorporateCare Enhanced covers the complete nacelle,” Robinson continues. “The program even covers erosion and corrosion.”

Price is what you pay. Value is what you get.”

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Been there, done that

Robinson shares a story that highlights just how far Rolls-Royce Business Aviation has gone to “rescue” an AOG customer.

As she explains, one of the company’s CorporateCare Enhanced customers had flown to the islands of the Maldives– the smallest country in Asia– and, when preparing to depart, encountered an issue with one of his airplane’s engines.

The only solution to getting the aircraft off the island was to replace its malfunctioning engine. Not an easy task under the best of conditions.

With limited infrastructure, we chartered C-130 to deliver a replacement engine– along with the on-wing technical team and equipment needed to resolve the issue on the island,” Robinson says. “This was done at no cost to the customer as they were covered by CorporateCare.”

Yes, this was an unlikely situation, but it highlights Rolls-Royce Business Aviation’s commitment to getting its customers’ aircraft back in the air as quickly, and with as little inconvenience as possible.

“We understand that owners rely on their aircraft to save them time and provide unhindered travel flexibility,” Robinson says. “That’s critical to them. We’ve built a global service network that is in a class of its own and is dedicated to meeting the unique needs of business aviation customers.

“CorporateCare Enhanced also provides customers with access to our global support infrastructure, including engine health monitoring, a network of over 75 authorized service centers, 65 on-wing technicians, and several global spare-parts stores. All strategically placed around the globe,” she continues. “To make it easy for our customers, it’s all managed by the experts at Rolls-Royce 24/7 Business Aviation’s Aircraft Availability Center.”

A benefit aircraft sellers can pass to new owners

While many “extended coverage plans” are thought to bring their highest value to the owner when an asset is purchased new, Robinson says that’s not the case with Rolls-Royce’s CorporateCare Enhanced program.

“With so many business aircraft changing hands now, it’s bringing a lot of first-time owners, and many of them are buying pre-owned aircraft,” she explains. “CorporateCare Enhanced is completely transferable with no added transfer fees, enabling for faster resale and higher resale value.

“In addition, if you buy a Rolls-Royce powered aircraft that is not enrolled in the program, you have the opportunity to get coverage,” Robinson says. “Yes, there is a one-time buy-in cost, but the owner will still enjoy all the benefits that come with CorporateCare Enhanced coverage.”

As noted earlier, another benefit to first-time buyers is that CorporateCare Enhanced is truly a turn-key engine program. Once the aircraft is on the program, you eliminate all the worry about future engine maintenance costs. Plus, being enrolled pays a handy dividend when you sell the aircraft.

“We created CorporateCare Enhanced on a direct request from key customers who make up our Corporate Customer Council– C3,” Robinson says. “They wanted a service option that covered the full powerplant that Rolls-Royce Business Aviation provides and more. They were instrumental in developing today’s program. Currently, more than 70% of all our business aviation engines are enrolled in the programme.”

Robinson adds that everyone at Rolls-Royce Business Aviation is gratified by the accolades that its customer support offerings have gained over the years.

“We are proud that the industry as a whole and our customers in particular recognize our efforts,” she says. “We have been voted the number-one service provider by AIN [Aviation International News] several times in the recent past. Its readers’ votes of confidence are a great motivation for us to keep building on our position as an industry leader.

“CorporateCare Enhanced is an excellent program for owners with any size fleet,” Robinson concludes. “It makes it easy for owners to manage their costs in a way that is fully transparent while eliminating unexpected engine maintenance costs and ensuring the aircraft’s ongoing availability. And with improved residual value, our program is a plus when it comes time to sell.

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