Rolls-Royce has won an order worth $9.5 billion to supply engines for 50 A380 aircraft for Dubai’s airlines. Emirates is thus giving a sigh of relief to the growing number of profit warnings after the scanty year. By far, it is the largest order in its history.
Emirates is the leading buyer of the A380 jet with 140 orders, has said that if Airbus goes ahead with a revamp of its A380 superjumbo it would place a big order for that model as quoted in The Times Of India.
Announcing the big deal at a press conference attended by Roll-Royce Chief Executive John Rishton and Emirates President Tim Clark, the companies said that the engines will come in to service only in 2016.
Shares in the British Company rose an initial 2 per cent after the Friday’s big announcement, which Rolls- Royce said was the biggest order in the history of a British Company outside the defence sector.
Though the shift in the engine supplier is rare, the deal was evident by Clark when he said that they were considering Rolls-Royce engine for the flights.
Emirates is currently the leading buyer of the A380 jet with 140 orders, has said that if Airbus goes ahead with a revamp of its A380 superjumbo it would place a big order for that model.
The contract signed on Friday for the classic A380 includes a long-term “Totalcare” package, which means Rolls-Royce will also have to provide service and maintenance to Emirates.
“As far as the neo is concerned, we await the deliberations from Toulouse. We have said that if they do, we will support that. We think that we can find a business case for it.” Clark told the reporters on Friday.
In order to improve the profitability the aerospace division is aiming to shed 2,600 jobs to try to improve profitability. Rishton also said that the new order would help secure jobs, but the 2,600 planned cuts would still go ahead.
Tags: Emirates Rolls-Royce
