United Air CEO tears into engine supplier Rolls-Royce for lack of support

United Airlines CEO Scott Kirby publicly criticised Rolls-Royce over contract commitments, escalating tensions between the carrier and the engine maker

United Airlines Chief Executive Officer Scott Kirby tore into engine supplier Rolls-Royce Holdings Plc at an annual gathering of industry executives, blasting the UK company for what he called a lack of support as the two companies tussle over a major aircraft order.  

“GE is the best, I think Pratt & Whitney is working hard, so I appreciate their attitude and what they’re doing, and my sentiment is that Rolls doesn’t care,” Kirby said in response to questions at the annual general meeting of the International Air Transport Association in Rio de Janeiro on Sunday.  

Rolls-Royce is winning orders “because they have a monopoly position on the A350-1000,” Kirby said, referring to the Airbus widebody model for which the UK manufacturer is the sole engine supplier. 

 

Kirby’s comments are an unusually blunt view of a key supplier, in an industry that tends to work out differences behind closed doors. United had previously ordered 45 Airbus A350 jets though it has since dropped the accord. Kirby said on Sunday the move was because Rolls-Royce was not honoring “any of it” and if they want to mend ties then they have to “start by honoring the contract.”  

General Electric and Rolls-Royce have created almost stand-alone positions on the biggest aircraft, with Boeing skewing Boeing and Airbus closer with Airbus. The only airliner that has both options is the Boeing 787 Dreamliner, though GE has carved out a formidable lead on that program. 

Asked last week during an interview in London about his relationship with United Airlines, Rolls-Royce CEO Tufan Erginbilgic said “we met all our contractual obligations, and I would like to find a way to work with United.” 

Responding to Kirby, a Rolls-Royce spokesman said that “every customer is important” to the company, and that the manufacturer looks forward “to strengthening our strategic partnership” with United in the future.  

Kirby said separately that the carrier has started to make adjustment due to jet fuel prices, adding he doesn’t think don’t think it will last long enough to cause real structural change. 

“But it does increase stress,” he said. 

The airline’s already cut 5% of flights, and has raised ticket prices by 20% so far.