In 2011 Rolls-Royce plc made a big strategic decision. It would pull back from developing new engines for single-aisle passenger aircraft. Instead it would put more resources and energy into industrial diesel engines and marine (ship) engines. It chose to do this for two reasons. First, it was concerned about becoming overreliant on passenger aircraft for its revenue and profits. Second, Rolls-Royce’s new chief executive had set the business the target of achieving a 15% operating profit margin. Senior managers believed it was impossible to reach such a high margin in the mass market for aero-engines for 150–200-seater aircraft.
By 2011 Rolls-Royce had become a world leader in engines for passenger aircraft. It had a 25% share of the entire market and a 50% share of the market for engines to power the biggest and newest aircraft: the Airbus A380 and the Boeing 787 Dreamliner. This was remarkable for Derby-based Rolls-Royce. The US giants General Electric and Pratt & Whitney had traditionally been the market leaders.
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