Rolls-Royce Pursues Growth and Faces Pricing Scrutiny at Singapore Airshow

Rolls-Royce Stock

The 2026 Singapore Airshow has become the launchpad for a significant growth initiative by British engine manufacturer Rolls-Royce. While the company has already secured a major new agreement with China Airlines, its leadership is aiming for more, setting its sights on Boeing’s customer base with enhanced engine technology. This expansion strategy, however, is unfolding alongside mounting customer criticism over the firm’s pricing, creating a complex balancing act.

Strategic Maintenance Deal with China Airlines

A cornerstone of Rolls-Royce’s recent announcements is a substantial “TotalCare” service agreement finalized with China Airlines. The contract covers 36 Trent XWB engines, which will power a fleet of 15 Airbus A350-1000 and three A350-900 aircraft.

For Rolls-Royce, this type of long-term service agreement is strategically vital, as it guarantees recurring revenue streams that often prove more profitable than the initial sale of the engines alone. With this order, China Airlines will expand its total A350 fleet to 33 aircraft, all powered exclusively by Rolls-Royce engines.

Targeting Boeing’s 787 Dreamliner Market

Having solidified its position with Airbus, Rolls-Royce is now actively pursuing market share with its American rival, Boeing. Rob Watson, President of the company’s Civil Aerospace division, stated in Singapore that the group has shifted into an “active sales mode.”

The primary target is the Boeing 787 Dreamliner. Historically, Rolls-Royce has conceded market share on this platform to rival GE Aerospace, which currently powers the majority of the over 1,200 Dreamliners in service. The British firm aims to reclaim lost ground and attract new customers with its enhanced Trent 1000 XE engine, which entered production in the second half of 2025.

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Customer Pushback on Rising Costs

The ambitious expansion plans are meeting resistance from airline customers concerned about rising costs. The pricing strategy for both engines and maintenance services was recently criticized by Willie Walsh, Director General of the International Air Transport Association (IATA).

Rolls-Royce has defended its price increases. Watson pointed to persistent post-pandemic supply chain disruptions that have directly impacted the company’s cost base. To improve acceptance among airlines, the company highlights technical progress, noting that durability improvements to the Trent XWB-97 have already extended the time between overhauls by 60 percent.

Expanding Infrastructure for Future Demand

To manage anticipated growth, Rolls-Royce is also supporting the expansion of maintenance infrastructure. Sanad, a subsidiary of Abu Dhabi’s Mubadala Investment Company, announced an investment of approximately $34 million to increase maintenance capacity for Trent 700 engines.

For investors who have enjoyed a share price advance of roughly 95 percent over the past twelve months, the focus now turns to the upcoming financial results. On February 26, 2026, Rolls-Royce will publish its full-year 2025 figures. Market attention will likely center on the operating margin and the progress of the share buyback program initiated in December.

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