Rolls-Royce wins $9.2 billion engine order from Emirates for A380s

Image
Reuters LONDON
Last Updated : Apr 17 2015 | 3:22 PM IST

LONDON (Reuters) - Rolls-Royce said it had won a $9.2 billion order to supply engines for 50 A380 aircraft for Dubai's Emirates airline, providing a boost for the British company after a torrid year of profit warnings.

Rolls-Royce said the order was the largest in its history, pushing its shares up 2.1 percent to 1001 pence in early trading, making it one of the biggest gainers on the FTSE 100 index.

It is the first time the Gulf carrier has ordered Rolls-Royce engines for its superjumbo fleet, the rest of which is powered by Engine Alliance, a joint venture of General Electric and Pratt & Whitney.

Announcing the deal at a joint press conference in London, attended by Rolls-Royce chief executive John Rishton and Emirates president Tim Clark, the companies said the aircraft in question would enter service from 2016.

The deal was confirmation that of what sources had told Reuters on Thursday.

The contract includes a long-term "Totalcare" package, which means Rolls-Royce will also provide service and maintenance to Emirates for the Trent 900 engines.

Though a shift in engine supplier is rare, the deal will not come as a surprise after Clark said in March he was considering Rolls-Royce engines for the 50 aircraft for which engine selection had yet to be made.

Rolls-Royce is the world's second-largest maker of aircraft engines after U.S. group General Electric, but cancelled orders in other parts of its business, where it makes power systems for use in the oil and gas, marine and industrial sectors have hit its outlook.

It warned in February that profits this year could fall by as much as 13 percent on top of an 8 percent drop last year, saying the low oil price had increased uncertainty.

(Reporting by Sarah Young; Editing by Li-mei Hoang)

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Apr 17 2015 | 3:03 PM IST

Next Story