But there is more to this corporate giant than most people know. Rolls-Royce has always specialised in making engines: for planes, ships, pumps and the oil and gas industry. Simon Robertson, chairman of Rolls-Royce Plc, was in Thailand recently to celebrate the company's 10-year relationship with Thai Airways.

Thailand was the first country in Asia to buy engines from Rolls-Royce. In an exclusive interview with The Nation, he said Asia accounted for one-third of the company's revenue and growth opportunities in the region were immense considering how fast China, India and Asean were progressing.

"Business links us also with Singapore, China and Malaysia. We have been continuously trying to penetrate the Japanese market although our competitors, Pratt & Whitney, were there before us. However the company has been successful in making a deal with Air Nippon," said Robertson.

In the public passenger aircraft business, customers - mostly airlines like Cathay Pacific, THAI and Korean Airlines - are given two choices. After deciding on Boeing or Airbus, an airline must choose an engine from Rolls-Royce or Pratt & Whitney and General Electric.

The first Airbus A380, the latest passenger aircraft made by Airbus, was delivered to Singapore Airlines. Flights using the aircraft commence later this year. Rolls-Royce was the first engine to installed in the A380.

"We feel extremely proud to be the first engine to fly the A380. This is definitely a milestone for us in Asia. China will be one of our target areas in Asia as more Chinese will tour the world owing to the country's booming economy," said Robertson.

Servicing engines accounts for 50 per cent of Rolls-Royce's revenue. Since aircraft engines have a life span of more than 15 years, servicing is crucial. The average Rolls-Royce engine costs about $15 million (Bt577 million).

The company still produces spare parts for engines it sold 50 years ago, which implies some of them are still in use. It has repair centres in Singapore and Hong Kong, with some work being done locally by on-site staff.

Major servicing requires engines to be split up and sent to service centres.

"Rolls-Royce is a global company. It is our time to expand in Asia. For this to work, we need the right people and the right time to come along. It takes about two years for an engine campaign [deal] to work out. The market is extremely competitive although there are only two other competitors," said Robertson.

Currently, Rolls-Royce sources its parts from all over the world, though production in Asia has been increasingly rapidly. It buys about 15 per cent of its parts from Japan and also has a plant in China.

The engines are assembled in England, Germany and the US. Robertson said that because production quality had improved, there was no reason Asia would not be considered for a larger supply of parts.

Vijo Varghese

The Nation