Rolls-Royce Powers Etihad Fleet Expansion and Partners with AviLease

Rolls-Royce Expands Middle East Footprint with Major Etihad Deal and AviLease Partnership

On November 18, 2025, amidst the industry activity at the Dubai Airshow, we observed two significant announcements from Rolls-Royce that underscore a strategic deepening of its presence in the Middle East aviation sector. The British engineering giant confirmed a comprehensive agreement to power a substantial expansion of Etihad Airways’ widebody fleet. Simultaneously, the company announced the signing of AviLease as the second customer for its newly enhanced service offering, LessorCare+.

These developments arrive at a critical juncture for the aerospace industry, particularly within the Middle East region, where fleet modernization and operational efficiency are paramount. The agreements align with Etihad’s “Journey 2030” growth strategy and signal a shift in how original equipment manufacturers (OEMs) interact with the aircraft leasing market. By securing these Contracts, Rolls-Royce is not only reinforcing its order book but also committing to substantial technical improvements designed to handle the specific environmental challenges of the region.

We view these announcements as a dual-pronged approach: strengthening direct airline Partnerships through hardware delivery and performance guarantees, while simultaneously fortifying relationships with the financial institutions that increasingly own the world’s Commercial-Aircraft assets. The following sections detail the specifics of the fleet expansion and the strategic implications of the new service agreements.

Powering Etihad’s Fleet Expansion

The core of the recent announcement involves Etihad Airways selecting Rolls-Royce engines for a diverse range of Airbus widebody aircraft. This agreement covers a total of 32 new aircraft, split between passenger and freighter models. Specifically, Etihad is adding 15 Airbus A330neo (A330-900) aircraft to its fleet. This acquisition is structured as a mix of direct purchasing and leasing, with a firm order for six aircraft and an agreement to lease nine others through Avolon. These aircraft will be powered by the Trent 7000 engine.

In addition to the A330neos, the agreement includes significant commitments for the Airbus A350 family. Etihad has ordered seven A350-1000 passenger aircraft and ten A350F freighters. Both variants will be powered by the Trent XWB-97 engine. This selection highlights the airline’s reliance on the Trent family to support its long-haul and cargo operations. The inclusion of the freighter variant is particularly notable, as it points to a strategic emphasis on cargo capacity within Etihad’s broader operational goals for the coming decade.

A critical component of this partnership is the focus on engine durability in harsh climates. Operating in the Middle East presents unique challenges due to high temperatures and sandy environments, which have historically impacted engine “time on wing”, the duration an engine can operate before requiring major maintenance. To address this, Rolls-Royce has committed to a £1 billion investment program across the Trent engine family. This investment is specifically aimed at enhancing durability and performance in these demanding conditions.

“We’re excited to continue our long-term partnership with Etihad, driven by confidence in the Trent XWB-97, where our investment will double time on wing in Middle East environments from 2028.”, Rob Watson, President of Civil Aerospace, Rolls-Royce.

Enhancing Asset Management with AviLease

Beyond the direct airline orders, we see a significant strategic pivot in how Rolls-Royce supports the aircraft leasing sector. Following the launch of “LessorCare+” in October 2025 with launch customer Avolon, Rolls-Royce has now signed AviLease as the second customer for this program. AviLease, a rapidly growing lessor based in Riyadh and backed by the Public Investment Fund (PIF), represents a key player in the regional market.

LessorCare+ is an evolution of the original LessorCare service introduced in 2017. It is designed to offer a single, comprehensive agreement that covers all Rolls-Royce engine types within a lessor’s portfolio. For a company like AviLease, this program offers enhanced visibility into asset holdings and engine health. One of the primary friction points in the leasing industry is the transition of aircraft between different operators. LessorCare+ aims to mitigate this by providing direct access to technical records and support services, thereby streamlining the transition process and protecting the asset’s value and liquidity.

The adoption of this program by a major Saudi-based lessor validates the industry’s demand for more integrated support mechanisms. As lessors now own approximately half of the world’s commercial aircraft, OEMs must adapt their service models to cater to these financial owners, not just the operators. This agreement ensures that AviLease has the technical backing required to manage its growing fleet efficiently, reducing administrative burdens and technical risks associated with engine ownership.

Strategic Implications and Future Outlook

The commitments made at the Dubai Airshow 2025 reflect a broader industry trend where performance guarantees are as critical as the hardware itself. The “time on wing” battle is a central theme in the widebody market, particularly in the Middle East. Rolls-Royce’s projection to double the time on wing for the Trent XWB-97 in this region by 2028 is a bold target. It suggests a high degree of confidence in the engineering upgrades currently being developed. Furthermore, the Trent 7000 is expected to see a 30% improvement in durability by 2026, building on recent enhancement packages that have already tripled time on wing in certain operational contexts.

From a manufacturing perspective, these deals provide a tangible boost to the UK aerospace sector. The Trent 7000 and Trent XWB engines are assembled and tested in Derby, UK. The continued demand for these engines secures high-value manufacturing jobs and reinforces the UK’s position in the global aerospace supply chain. The alignment of these manufacturing capabilities with the operational needs of Middle Eastern carriers creates a robust commercial bridge between the two regions.

Looking ahead, we anticipate that the success of these agreements will hinge on the delivery of the promised durability improvements. If Rolls-Royce meets its 2026 and 2028 targets, it will likely solidify its position against competitors like GE Aerospace in the widebody segment. The expansion of LessorCare+ also suggests that future aftermarket services will increasingly be tailored to the needs of the leasing community, potentially leading to new standards in how engine lifecycle data is shared and managed across the industry.

Concluding Section

In summary, the announcements from the Dubai Airshow 2025 mark a significant consolidation of Rolls-Royce’s market position in the Middle East. The agreement with Etihad Airways secures a long-term presence on a modern, expanding fleet, while the partnership with AviLease demonstrates an ability to adapt to the financial realities of the modern aviation market. The £1 billion Investments in durability upgrades serves as the technological backbone for these commercial successes.

As the industry moves toward 2030, the focus will remain on the execution of these durability targets. The ability to operate efficiently in “hot and sandy” environments is no longer just a technical specification but a commercial imperative. We will continue to monitor the rollout of the Trent engine upgrades and the expansion of the LessorCare+ program as indicators of the company’s trajectory in the civil aerospace sector.

FAQ

Question: What specific aircraft are included in the Etihad fleet expansion?
Answer: The expansion includes 15 Airbus A330neo (A330-900) aircraft, 7 Airbus A350-1000 passenger aircraft, and 10 Airbus A350F freighters.

Question: What is the objective of the £1 billion investment mentioned by Rolls-Royce?
Answer: The investment is directed toward the Trent engine family to improve durability and performance, specifically aiming to double the “time on wing” for the Trent XWB-97 in Middle East environments by 2028.

Question: What is LessorCare+?
Answer: LessorCare+ is an enhanced service program for aircraft lessors that provides a single agreement for all Rolls-Royce engine types, offering better fleet visibility, technical support, and assistance with transitioning aircraft between operators.

Sources

• Rolls-Royce Press Release: Etihad Fleet Expansion