The aerospace and defense giant Rolls-Royce has secured a significant long-term service agreement in Asia, providing a timely boost as it prepares to announce its annual results. The deal comes as company executives face ongoing questions from global airlines regarding its pricing strategy for engine maintenance.
A Substantial Fleet Expansion for China Airlines
On February 4, 2026, Rolls-Royce finalized a TotalCare service agreement with China Airlines, covering engines for 18 new Airbus A350 aircraft. The contract includes 30 Trent XWB-97 engines to power 15 A350-1000s and an additional 6 Trent XWB-84 engines for three A350-900s.
This order significantly expands the carrier’s existing fleet of 15 Rolls-Royce-powered A350s, bringing the total to 33 aircraft. The comprehensive TotalCare package will provide ongoing maintenance and engine health monitoring services for the new units.
Key details of the agreement:
* The deal encompasses 36 engines in total: 30 Trent XWB-97 and 6 Trent XWB-84 models.
* It supports the delivery of 18 new Airbus A350 planes to China Airlines.
* Full TotalCare service coverage is included.
* The Trent XWB-97 engine platform has now accumulated over four million flight hours in service.
Rolls-Royce has committed to enhancements that will extend the time between necessary maintenance by 60%. A third phase of improvements, scheduled for 2028, is projected to double the engine’s time on wing in demanding operating conditions.
Executives Defend Pricing Model at Industry Event
During the recent Singapore Airshow, Rob Watson, President of Civil Aerospace, publicly addressed criticism from airline representatives about the company’s pricing. The debate was sparked by comments from IATA Director General Willie Walsh, who accused engine manufacturers of raising repair costs despite durability issues.
Watson countered that current pricing reflects increased expenses stemming from post-pandemic supply chain challenges. He simultaneously confirmed that durability improvement programs for the Trent XWB-97 are proceeding according to schedule.
A crucial operational test is slated for 2027, when Rolls-Royce intends to demonstrate the engine’s performance in the harsh operating environment of the Middle East. This region is of particular interest, as Emirates has stated it will wait to see demonstrated durability progress before placing an order for the A350-1000.
Defense Business Thrives as Lunar Project Stalls
While its civil aerospace division moves forward, Rolls-Royce has encountered a setback in its space ambitions. Reports from The Telegraph indicate that the company’s ambitious project to develop a nuclear reactor for the Moon by 2029 has been paused. The initiative has reportedly been shelved for now due to an inability to secure sufficient project partners.
In contrast, the company’s defense segment continues to show strength. Rolls-Royce is positioning itself as a key partner for the Royal Saudi Air Force at the World Defense Show in Riyadh, running from February 8 to 12. The company notes that over 80% of its workforce in Saudi Arabia are now Saudi nationals. Hundreds of its engines are in operation there, powering aircraft such as the Tornado, Typhoon, and Hawk.
Upcoming Financial Results and Market Position
All eyes are now on the full-year 2025 results, which Rolls-Royce is set to publish on February 26, 2026. The company’s ongoing share buyback program will continue until that time. The new agreement with China Airlines reinforces Rolls-Royce’s standing in the wide-body engine market, even as the public pricing discussion highlights the delicate balance the firm must maintain between customer relations and its own financial realities.