Rolls-Royce signs up £1.4bn engine deal
ROLLS-ROYCE has inked a $2.2bn (£1.36bn) deal with Brazil’s TAM airlines to provide engines for its Airbus A350 airplanes.
The aerospace and engines giant said in a statement yesterday that it will provide the Brazilian domestic airline with its fuel-efficient Trent XWB engines for a fleet of 27 aircraft ordered from Airbus.
The contract also includes an agreement to service the engines for 12 years.
Rolls announced a string of deals on the opening day of the Paris Air Show including $310m worth of new contracts with Bahrain’s Gulf Air and China Southern Airlines.
It has also won a deal with Saudi Arabia to repair and overhaul the engines powering the Royal Saudi Air-Force’s C130 transport aircraft.
Meanwhile, Bodycote has signed a 10-year contract renewal with Rolls to process metals used in its aircraft engines.
Bodycote has a facility at the Rolls-Royce factory in Derby and the deal will also generate work for five more Bodycote sites.
European planemaker Airbus bagged a total of $14.4bn of orders on the first day of the air show, outselling US rival Boeing’s $9.3bn haul.
Airbus dominated orders for single-aisle planes, the largest aircraft segment, luring airlines with a new version of its top-selling model. The A320neo has been re-fitted with engines which will save airlines 15 per cent in fuel costs, according to the company.
Shares in Rolls-Royce fell 3.5 per cent yesterday, closing at 595p. Boeing closed 0.5 per cent up on the NYSE.