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Description
Rolls-Royce Power-by-the-Hour (PBH) is a service offer that allows airlines to pay for the power and time that they actually use the airplane engines, rather than buying and maintaining them. This service offer is designed to provide airlines with a predictable and stable cost structure for engine maintenance, while also ensuring that their engines are always in top condition.
Under the Power-by-the-Hour program, Rolls-Royce takes full responsibility for the maintenance, repair, and overhaul of the engines, including the provision of spare parts and technical support. In return, the airline pays a fixed rate per engine flying hour, based on agreed usage levels.
Rolls-Royce launched the PBH service offer in the 1960s as a way to help airlines manage the high cost and complexity of maintaining their jet engines. Since then, it has become a cornerstone of Rolls-Royce's business model, accounting for a significant portion of the company's revenue.
One notable example of the Power-by-the-Hour program in action is its use by Emirates, one of the world's largest airlines. Emirates signed a 15-year Power-by-the-Hour agreement with Rolls-Royce in 2015, covering the Trent 900 engines that power its fleet of Airbus A380s. The agreement guarantees that Emirates' engines are always in top condition, and ensures that the airline can operate its A380s with maximum efficiency and reliability.
Overall, the Rolls-Royce Power-by-the-Hour offer is a successful case study of how a service offer can provide value to customers by addressing their needs and concerns, while also generating revenue and ensuring long-term customer loyalty for the company.
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