Rolls-Royce CEO Says It Will Be `Several Years' Before Demand Recovers

The transcript discusses the impact of the COVID-19 crisis on Rolls Royce, particularly its civil aerospace sector, which constitutes 60% of its business. The company anticipates a significant drop in demand and is aligning its capacity accordingly. Site closures and job cuts are being considered, with consultations ongoing with unions. The aviation industry is expected to recover to pre-2019 levels over several years, with a shift towards sustainable air travel. The company aims to protect future jobs by making necessary adjustments now.

What percentage of Rolls Royce's business was represented by civil aerospace before the crisis?

• 60%

• 30%

• 50%

• 90%

What is the expected decrease in demand for Rolls Royce's civil aerospace sector over the next three to five years?

• 10%

• 20%

• 30%

• 40%

Why is it important for Rolls Royce to consult with employee representatives and unions?

• To develop new products

• To minimize employee uncertainty

• To increase production

• To expand overseas

What types of site closures is Rolls Royce considering?

• Only manufacturing sites

• Only service sites

• Both manufacturing and service sites

• Neither manufacturing nor service sites

Where might Rolls Royce's site closures occur?

• Neither in the UK nor overseas

• Only overseas

• Only in the UK

• Both in the UK and overseas

How long is it expected to take for the aviation industry to return to 2019 levels?

• 9-10 years

• 1-2 years

• 6-8 years

• 3-5 years

What trend is expected to accelerate in the aviation industry post-COVID-19?

• Higher ticket prices

• Increased luxury travel

• More sustainable air travel

• Decreased safety measures