Rolls-Royce wins $9.2 billion order from Emirates for A380 engines
By Sarah Young
LONDON (Reuters) - Rolls-Royce (RR.L: Quote) has won a $9.2 billion deal to supply engines for 50 A380 aircraft for Dubai's Emirates airline [EMIRA.UL], the largest order in its history and giving it a boost after a torrid year of profit warnings.
Shares in the British company rose an initial 2 percent after Friday's announcement, which Rolls-Royce said was the biggest order placed with a British company outside the defense sector.
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 (GE.N: Quote) and Pratt & Whitney (UTX.N: Quote).
Announcing the deal at a press conference 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.
Though a shift in engine supplier is rare, the deal had been flagged by Clark in March, when he said he was considering Rolls-Royce engines for the aircraft. The selection could raise hopes that Rolls will win more orders from Emirates.
Emirates, the leading buyer of the A380 jet with 140 orders, has said that if Airbus (AIR.PA: Quote) goes ahead with a revamp of its A380 superjumbo it would place a big order for that model.
Clark has said he expected any so-called A380neo to be powered by Rolls-Royce engines based on its Trent XWB engine.
"As far as the neo is concerned, we await the deliberations from Toulouse," Clark told reporters on Friday, referring to Airbus headquarters. Continued...