Michael UngarCEO of the Industry 4.0 Club

Rolls Royce: Selling Air Miles, Not Engines!

23 Aug 2026 · 1 min

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0:38

In this brief segment, the speaker highlights Rolls‑Royce’s strategic shift from selling physical airplane engines to selling the outcome of engine performance—measured as air miles flown. By charging airlines based on the number of miles their aircraft operate, Rolls‑Royce exemplifies an outcome‑as‑a‑service (OaaS) or servitization model, where the value proposition is the service result rather than the hardware itself.

Chapters

A good example of that is, you're familiar with Rolls-Royce. They're one of the major manufacturers of airplane engines. They don't sell airplane engines anymore. They sell air miles. So how many miles a plane flies in the air is what Rolls-Royce is selling to the various different airlines. Right. when they buy an airplane. And so that's the ultimate state of that, is to be able to sell the outcome as a service.