Rolls Royce wins engine contracts worth $2 billion


UK engineering firm Rolls Royce has won a $2 billion (£1.2 billion) contract to supply engines to Air China and Ethiopian Airlines.

The $1.5 billion Air China order is for the provision of Trent 700 engines to power 20 A330 aircraft, to be delivered from 2011.
The order will take Air ChinaÔÇÖs Rolls-Royce powered A330 fleet to a total of 43. Across China, the Trent 700 now powers a total of 178 A330s in service or on order.
Meanwhile, the $480 million order from Ethiopian Airlines is for Trent XWB engines for 12 A350-900 XWB planes, due to come into service in 2017.
The Ethiopian order brings the total sales of Rolls-RoyceÔÇÖs best-selling XWB engines to over 1,000.
The two orders were announced on the first day of the Dubai Airshow on Sunday.
The order is welcome news for Bristol-based Rolls Royce, which, like many in the engineering sector, has been feeling the effects of the recession hitting the worldÔÇÖs airlines due to rising oil prices and a drop in customer demand.
Commenting on the announcement, Phil Harris, Rolls-RoyceÔÇÖs senior vice president, Customer Business, said: ÔÇ£We are delighted that Air China is again turning to Trent engine technology.
ÔÇ£It offers Air China many advantages, such as the ability to maximise capacity at hot and high altitude airports, minimise fuel costs and benefit from the Rolls-Royce TotalCare├ó comprehensive long-term support package.ÔÇØ
He Li, Air ChinaÔÇÖs senior vice president, added: ÔÇ£We have been pleased with the performance and service support for our existing Trent 700s. This was a major factor in our latest engine selection.ÔÇØ
The Trent 700 engines are enhanced performance versions, which improves engine fuel burn on the A330.
Rolls Royce has also said that the XWB is the most fuel efficient and environmentally sensitive large engine design available, with fuel efficiency ratings 28 per cent higher than its pre-Trent range of engines.
Rolls RoyceÔÇÖs revenues in 2008 were ┬ú9.1 billion. As of June 2009 its order book stood at ┬ú57.5 billion, with the aerospace division accounting for around ┬ú46.7 billion.
As of June 2009, Air China, the countryÔÇÖs national flag carrier, operated a fleet of 243 aircraft, serving 143 destinations in 32 countries and regions.
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