Latest news with #TufanErginbilgiç
Yahoo
13 hours ago
- Business
- Yahoo
Rolls-Royce plots market domination after ‘Turban Tufan's' turnaround
Five years after Rolls-Royce nearly collapsed under the weight of Covid, the British manufacturing giant is plotting a new era of industrial domination. Under the guidance of boss Tufan Erginbilgiç, nicknamed 'Turbo', Rolls has overcome an era of financial chaos and mismanagement to launch a renewed assault on the jet engine and nuclear power markets. As he declared the next stage of the company's strategy last week, the former BP executive said Rolls's revival will soon contribute 'the single biggest item for economic growth for the UK'. It is far from the gloomy message he told workers after landing as chief executive in 2023, when he described the engineering giant as a 'burning platform'. Speaking at the Paris Air Show last week, he said Rolls is stepping up plans to make engines for the short-haul planes that dominate air travel, after quitting the sector more than a decade ago. To some degree, the announcement encapsulated the radical turnaround at Britain's leading manufacturer, which now has a market capitalisation of £75bn, seven times higher than when Erginbilgiç took over in January 2023. He said talks with potential partners have intensified as Rolls aims to re-enter the £1.6 trillion short-haul aviation market, which will see the company building and maintaining engines for the likes of Ryanair. At the same time, its selection this month as preferred bidder to supply small modular reactors (SMRs) to the new Great British Nuclear has also given Rolls a critical first-mover advantage in the sector, according to the decision has already unleashed huge export interest as nations examine SMRs as a solution to requirements for cheaper power, energy security and 78pc of the SMR supply chain can be satisfied in Britain, he said, compared with just 60pc for offshore together, the two initiatives promise to create about 55,000 jobs across the supply chain, 40,000 of those in the aerospace sector and the rest in nuclear. Airline bosses hailed the return of Rolls to the short-haul market, particularly as it will pile pressure on the incumbents Pratt & Whitney (P&W) and General Electric (GE).József Váradi, the chief executive of low-cost carrier Wizz Air, urged Rolls to avoid teaming up with other engine manufacturers and instead go it alone. His support is perhaps unsurprising after Wizz has suffered years of disruption from defective engines made by P& said: 'I would welcome Rolls-Royce more as a third party as opposed to a joint venture party with one of the current players.'There will be a hell of a lot of growth in narrow-body planes in the future, so I definitely think it can bear more than two. A tripartite market would do a lot better for us.'Bringing a new engine to the market would cost £3bn, according to Erginbilgiç, who called on the Government to provide support matching the levels received by GE and P&W in the US. In return, he said, Rolls would deliver 'the single biggest item for economic growth for the UK'.Rolls's new short-haul turbine would need to produce about 30,000 pounds of thrust, compared with almost 100,000 for its larger A350 engine. He suggested this could be achieved by combining the core of a business jet engine with technology from the ongoing Ultrafan has said it plans to produce a demonstrator engine in two years, hopefully coinciding with Airbus and Boeing's plans to launch new single-aisle models before the end of the Váradi warned that a new engine is likely to come under intense scrutiny in light of problems suffered by the current generation of turbines, as supply chain constraints have triggered maintenance delays and safety concerns. He said: 'The regulator is going to be a lot more rigid and prudent than before, given all the issues in the industry. This is a long game with no room for shortcuts.'Erginbilgiç said he is wedded to a traditional design for the new engine, and has no plans to embrace the 'open rotor' approach being pursued by GE, which features large, curved propeller blades with no casing and aims to replicate the lower fuel burn of turboprop planes. While an open rotor might deliver a 20pc gain in efficiency compared with current engines, Rolls believes it can get within 2pc of that with a more conventional design at far less said: 'Our competitor is a very capable company. But you are changing everything: the aircraft, the engine, so the risk profile is by definition a lot greater.' Boeing has also questioned the use of an open rotor to power the next generation of single-aisle planes, while Erginbilgiç said there are concerns about the additional noise and whether people will want to look out of the window and see such an unusual said: 'I'm not sure passengers would like to see a big fan. Not everybody is comfortable with flying so you need to make it as comfortable and safe as possible.' Meanwhile, Erginbilgiç, who was formerly a partner at private equity firm Global Infrastructure Partners, said that the company's SMR venture is now ready for take off after receiving government said the biggest export market is likely to be in Europe, 'where nuclear is the only solution if you want net zero and supply security'. Rolls already has a reactor contract in the Czech Republic and expects to sign a deal in Sweden soon, though the chief executive said that Rolls must carefully manage its order book. Construction of each SMR will take five years initially, he said, with two under way at any given said: 'We need to build our reputation, then business will come. It's not a new technology, but it's a new application. While SMRs are not the same as 'big nuclear,' he said, 'this industry doesn't have a great track record and we don't want to join that group'. However, he said that Rolls-Royce, which has 42,000 staff, holds a crucial advantage in both gas turbines and modular said: 'Only three companies in the world can do [jet engines] and barriers to entry are enormous. 'And if we are not the world leader in SMRs, we did something wrong, because there is no other private company in the world with our nuclear capability.' Asked if he had considered moving on with Rolls-Royce now ready to embark on a new phase in its 120-year history, the 65-year-old said he was 'very committed' and not tempted by potential lucrative rewards elsewhere. He said: 'It's not about money. If money was important, I wouldn't have come from private equity, trust me. I'm here because I would like to be here.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
Telegraph
17 hours ago
- Automotive
- Telegraph
Rolls-Royce has been fixed and is now going on the attack
Five years after Rolls-Royce nearly collapsed under the weight of Covid, the British manufacturing giant is plotting a new era of industrial domination. Under the guidance of boss Tufan Erginbilgiç, nicknamed 'Turbo', Rolls has overcome an era of financial chaos and mismanagement to launch a renewed assault on the jet engine and nuclear power markets. As he declared the next stage of the company's strategy last week, the former BP executive said Rolls's revival will soon contribute 'the single biggest item for economic growth for the UK'. It is far from the gloomy message he told workers after landing as chief executive in 2023, when he described the engineering giant as a 'burning platform'. Speaking at the Paris Air Show last week, he said Rolls is stepping up plans to make engines for the short-haul planes that dominate air travel, after quitting the sector more than a decade ago. To some degree, the announcement encapsulated the radical turnaround at Britain's leading manufacturer, which now has a market capitalisation of £75bn, seven times higher than when Erginbilgiç took over in January 2023.
Skift
11-06-2025
- Business
- Skift
Rolls-Royce CEO: Only Sustainable Aviation Fuel Can Decarbonize Long-Haul Flights
Forget the hydrogen hype – at least for now. Rolls-Royce says sustainable aviation fuel is the only viable path to cutting emissions for long-haul air travel in the next 20 years. As the global aviation industry races toward a 2050 net-zero emissions goal, Rolls-Royce is placing a firm bet on sustainable aviation fuel (SAF). Rolls-Royce CEO Tufan Erginbilgiç dismissed the idea that other technologies will meaningfully cut emissions for larger aircraft anytime soon: 'In the next 20 years, [sustainable aviation fuel] is the only technology that's going to decarbonize commercial aviation,' he said Wednesday at a Wall Street Journal event in London. Erginbilgiç's assessment reflects not only the company's strategic priorities but also mounting industry-wide pressure to cut carbon emissions in the short and medium term – well before alternative technologies become viable at scale. 'We are the only company who can actually say that all of our aerospace engines are 100% SAF compatible,' Erginbilgiç said. 'That's important because you can make small planes hydrogen or electric, but when we're talking about narrowbody, widebody, overseas commercial airlines, SAF is the only solution.' He touted the UltraFan, a next-generation engine in development, as a sign Rolls-Royce is also focused on improving fuel efficiency. It's described in the company's marketing materials as 'the sustainable solution for decades to come,' and promises to be 10% more efficient than those currently on the market. However, the UltraFan won't power aircraft until the 2030s. Rolls-Royce says some of the learnings from this new-generation tech could be applied to existing engines, but it hasn't said exactly when or how. Rolls-Royce's current range of engines help power many of the world's most popular long-haul aircraft, including the Boeing 777 and Airbus A350. A Narrow Window for Progress Erginbilgiç's remarks come as airlines face growing scrutiny over their climate impact. The International Air Transport Association (IATA) – the global airline trade body – has committed to achieving net-zero emissions by 2050. Many industry watchers agree that this target requires both short-term action and long-term technological transformation. While emerging technologies like hydrogen and electric propulsion may reshape aviation in the second half of the century, the next two decades represent a critical window for emissions reductions, but where commercial-scale alternatives remain elusive. Erginbilgiç's comments reaffirm that these solutions are at least two decades away for practical application in large commercial aircraft. That leaves SAF, a lower-carbon alternative to conventional jet fuel made from sources like waste oils and agricultural residues, as the most viable bridge technology. However, SAF currently accounts for less than 1% of global aviation fuel use, hampered by limited supply and high prices. SAF can cost up to three times more than traditional jet fuel. Industry Frustration Grows Speaking to Skift last month, Willie Walsh, IATA director general, criticized the slow roll-out of SAF. "The lack of progress, particularly in relation to the production of SAF, demonstrates that it's not going to be done by airlines alone. The OEMs [plane and engine makers] are not delivering to the commitments that they make," said Walsh. "Everybody is out there saying we're committed to net-zero in 2050. But all of the players [in] the airline community are walking away from tangible action that would demonstrate that they're committed. We're not seeing what we would expect from them." Is Sustainable Aviation Fuel the Solution or a Harmful Distraction? Sustainable Aviation Fuel is being pushed as the main decarbonization pathway for the aviation industry. But a growing number of airline executives are pushing back on it as a waste of time when better solutions exist. Read More Erginbilgiç and Walsh's comments reflect growing realism among aviation leaders: that innovation timelines don't always match regulatory deadlines. In March, the chief executives of four of Europe's biggest airline groups urged the EU to delay rules requiring the use of SAF because of concerns around supply. The EU already requires all airlines operating in the region to use 2% SAF in their fuel mix. This will ramp up to at least 6% by 2030. The UK has a similar mandate that will rise to 10% in 2030. What Do the Airlines Say? Speaking on Skift's climate podcast GreenShift, Amelia DeLuca, Delta's chief sustainability officer, acknowledged the tension between business expansion and climate goals. 'Sustainable aviation fuel is the biggest lever,' she said. 'It's the only thing that gets us to net zero. We're in a race against time.' DeLuca called on the sector to continue investing in new technologies such as carbon capture, capturing gasses out of the atmosphere using renewable energy and turning it back into fuel. 'These are unlimited feedstocks. And that cost profile of that product, if you have unlimited feedstocks, is actually lower than conventional jet fuel today. But that is a long way off. This is going to take all of us. Airlines alone can't solve climate change.' Meanwhile, Yvonne Moynihan, corporate & ESG officer at European low-cost carrier Wizz Air said in April: 'Radical change needs to happen. Subsidies have to be redirected into renewable energy.' She told Skift that some airlines have included hydrogen in their roadmaps, but that Wizz Air excluded it and instead focuses on "realistic levers.' 'We understand that the most realistic decarbonization levers are ones that we already have, which are improvements in current aircraft and engine technology and SAF. We need to kick start the production of SAF, this is the best chance for airlines to decarbonize,' she added. Additional reporting by Darin Graham What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance. Read the full methodology behind the Skift Travel 200. Skift's in-depth reporting on climate issues is made possible through the financial support of Intrepid Travel. This backing allows Skift to bring you high-quality journalism on one of the most important topics facing our planet today. Intrepid is not involved in any decisions made by Skift's editorial team.
Yahoo
06-06-2025
- Business
- Yahoo
Rolls-Royce CEO fired managers and held staff brainstorms as part of a ‘4 pillar' turnaround plan that led to 600% share price jump
Just two years ago, Tufan Erginbilgiç, then newly installed as CEO of Rolls-Royce, gave a grim warning to the engine maker's employees, describing the company as a 'burning platform' facing its 'last chance' at survival, as he lamented its track record of destroying value with each of its investments. With that considered, Rolls-Royce's turnaround since—including a 600% share price jump and hitting profit targets two years ahead of schedule—is nothing short of astounding. But Erginbilgiç, a former BP executive who doesn't regard himself as ruthless, took a fairly rudimentary approach to instill a successful turnaround at a group that has added more than $70 billion to its market value in the last two years. Rolls-Royce manufactures engines for major plane manufacturers, Airbus and Boeing, on large, dual-aisle aircraft. The group is also a supplier of engines and propulsion systems for combat aircraft and submarines to government defense departments including the Ministry of Defense in the U.K. Despite that, when Erginbilgiç joined Rolls-Royce, the company was near its floor for market valuation, bogged down by falling air travel during the COVID-19 pandemic and costly contracts with loss-making clients. An industry-wide rebound in travel demand and some astute contract negotiations are among the headline points that explain Rolls-Royce's turnaround. In the background, though, are the fruits of an ambitious plan involving each of Rolls-Royce's 42,000 employees. In an interview with the Financial Times, a victorious Erginbilgiç described how he leaned on 'four pillars' to encourage wholesale change throughout his organization. The first pillar involved showing staff the extent of the difficulties faced by the company, exemplified by Erginbilgiç's 'burning platform' comments, which both shocked and focused his employees. Tougher stances were to follow. Under Erginbilgiç's guidance, the company laid off 2,500 employees in 2023, mostly in middle manager positions, the FT reports. At the same time, Erginbilgiç held workshops for 500 employees to allow brainstorming and the implementation of the best ideas. Erginbilgiç's third pillar required the company to set clear performance targets. The company now has 17 targets, including improving the amount of time its engines were on the wing of a plane, rather than losing money in the repair shop. The fourth pillar of the turnaround aimed to ensure Rolls-Royce's targets were attacked with 'pace and intensity.' 'If you don't have a strategy that can cascade down to 42,000 people it won't get delivered,' Erginbilgiç summarized to the FT. Bosses are increasingly turning to management practices that can help them get their message across directly to as many staffers as possible. In some cases, this is driven by urgency and, in other cases, by technological advancement. Speaking to Fortune last year, Sanofi CEO Paul Hudson described how he used the 'Fight Club' approach to encourage employees to begin using its AI agent. Hudson initially got a small group of people in a room using the tool, before allowing word of mouth to help uptake of the technology spread. Meanwhile, Bayer, a similarly struggling European giant, also turned to a personnel shakeup to combat investor pessimism. Bayer's CEO, Bill Anderson, got rid of more than 5,000 employees, mostly in managerial positions, and asked employees to self-organize and work in 90-day 'sprints' in self-directed teams.A year after Bayer's attack on bureaucracy began, Anderson said attrition at the company had fallen. Editor's note: A version of this article first appeared on on March 25, 2025. This story was originally featured on
Yahoo
04-06-2025
- Business
- Yahoo
Rolls-Royce CEO fired managers and held staff brainstorms as part of a ‘4 pillar' turnaround plan that led to 600% share price jump
Just two years ago, Tufan Erginbilgiç, then newly installed as CEO of Rolls-Royce, gave a grim warning to the engine maker's employees, describing the company as a 'burning platform' facing its 'last chance' at survival, as he lamented its track record of destroying value with each of its investments. With that considered, Rolls-Royce's turnaround since—including a 600% share price jump and hitting profit targets two years ahead of schedule—is nothing short of astounding. But Erginbilgiç, a former BP executive who doesn't regard himself as ruthless, took a fairly rudimentary approach to instill a successful turnaround at a group that has added more than $70 billion to its market value in the last two years. Rolls-Royce manufactures engines for major plane manufacturers, Airbus and Boeing, on large, dual-aisle aircraft. The group is also a supplier of engines and propulsion systems for combat aircraft and submarines to government defense departments including the Ministry of Defense in the U.K. Despite that, when Erginbilgiç joined Rolls-Royce, the company was near its floor for market valuation, bogged down by falling air travel during the COVID-19 pandemic and costly contracts with loss-making clients. An industry-wide rebound in travel demand and some astute contract negotiations are among the headline points that explain Rolls-Royce's turnaround. In the background, though, are the fruits of an ambitious plan involving each of Rolls-Royce's 42,000 employees. In an interview with the Financial Times, a victorious Erginbilgiç described how he leaned on 'four pillars' to encourage wholesale change throughout his organization. The first pillar involved showing staff the extent of the difficulties faced by the company, exemplified by Erginbilgiç's 'burning platform' comments, which both shocked and focused his employees. Tougher stances were to follow. Under Erginbilgiç's guidance, the company laid off 2,500 employees in 2023, mostly in middle manager positions, the FT reports. At the same time, Erginbilgiç held workshops for 500 employees to allow brainstorming and the implementation of the best ideas. Erginbilgiç's third pillar required the company to set clear performance targets. The company now has 17 targets, including improving the amount of time its engines were on the wing of a plane, rather than losing money in the repair shop. The fourth pillar of the turnaround aimed to ensure Rolls-Royce's targets were attacked with 'pace and intensity.' 'If you don't have a strategy that can cascade down to 42,000 people it won't get delivered,' Erginbilgiç summarized to the FT. Bosses are increasingly turning to management practices that can help them get their message across directly to as many staffers as possible. In some cases, this is driven by urgency and, in other cases, by technological advancement. Speaking to Fortune last year, Sanofi CEO Paul Hudson described how he used the 'Fight Club' approach to encourage employees to begin using its AI agent. Hudson initially got a small group of people in a room using the tool, before allowing word of mouth to help uptake of the technology spread. Meanwhile, Bayer, a similarly struggling European giant, also turned to a personnel shakeup to combat investor pessimism. Bayer's CEO, Bill Anderson, got rid of more than 5,000 employees, mostly in managerial positions, and asked employees to self-organize and work in 90-day 'sprints' in self-directed teams.A year after Bayer's attack on bureaucracy began, Anderson said attrition at the company had fallen. Editor's note: A version of this article first appeared on on March 25, 2025. This story was originally featured on
