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EconomyGlobal Economy

Rolls-Royce, Air China set up US$380 million engine service joint venture amid US tech export restrictions, travel curbs

  • Air China and Rolls-Royce will establish a new maintenance, repair and overhaul facility in Beijing, which is expected to be fully operational by the mid-2030s
  • Beijing Aero Engine Services Company will service the Trent 700, Trent XWB-84 and Trent 1000 engines for the widebody passenger jets that are used in Air China’s fleet

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The newly established Beijing Aero Engine Services Company will service the Trent 700, Trent XWB-84 and Trent 1000 engines for the widebody passenger jets that are used in Air China’s fleet. Photo: AFP
Amanda Lee

China’s leading airline has formed a joint venture with British aerospace firm Rolls-Royce in Beijing for engine service amid growing export restrictions from the United States on advanced technology and curbs on international travel.

The 50:50 joint venture between Air China and Rolls-Royce will establish a new maintenance, repair and overhaul facility in China’s capital, according to a press statement from the British aerospace company on Thursday during the 2022 China International Fair for Trade in Services in Beijing.

The newly established Beijing Aero Engine Services Company will service the Trent 700, Trent XWB-84 and Trent 1000 engines for the widebody passenger jets. Air China has all three engine types in its fleet.

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The British aerospace firm said its engines currently power 60 per cent of China’s total widebody fleet, which includes more than 550 aircraft in service or on order.

Air China is a strategic partner for us, having successfully grown together over many years, and I am delighted to now expand our relationship with this exciting partnership
Chris Cholerton

“The announcement of this [joint venture] is an important milestone for Rolls-Royce in China, where we have been powering the nation’s airlines for more than 50 years,” said Chris Cholerton, president of civil aerospace at Rolls-Royce.

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