DTN News: Airbus Order Brings $2 Billion In Sales For Rolls-Royce

DTN News: Airbus Order Brings $2 Billion In Sales For Rolls-Royce *Source: DTN News / Int'l Media (NSI News Source Info) LONDON, UK- December 9, 2009: Rolls-Royce, the engine manufacturer, has won a $2 billion (£1.2 billion) contract, with United Airlines placing its first new aircraft order in 12 years. Rolls will supply Trent aero engines for 25 Airbus A350 XWBs in a deal that will boost significantly the aircraft’s profile in the United States. Rolls is the sole engine supplier for the A350. Airbus has sold the A350, which is expected to be introduced from 2013, to only one other American carrier, US Airways. Boeing, Airbus’s rival, also benefited from United’s order yesterday as it sold 25 of its 787 Dreamliner aircraft to the carrier. Rolls and General Electric will compete to provide the engines for United’s 787s in the coming months. The value of the two aircraft orders is $10 billion, with the larger Airbus aircraft worth about 60 per cent of the total. In addition, United has placed provisional orders for 50 more of both aircraft. Mark King, president of Roll’s civil aerospace division, said: “This represents a significant endorsement of our Trent XWB technology and its operational advantage. We are delighted that United Airlines has put its trust in the long-term performance advantages of Trent technology.” United Airlines is America’s third-largest airline but it has struggled financially in recent years and has been unable to buy new, fuel-efficient aircraft. It emerged from four years in Chapter 11 bankruptcy protection in 2006 but then was forced to reduce its fleet as the US economy entered recession. It has retired nearly 100 older Boeing 737s and six 747s. The financial weakness of many North American carriers means that the continent now has an ageing fleet of aircraft. This brings significant costs to the airlines as older aircraft need more maintenance, burn more fuel and emit more carbon dioxide. The new 787 and A350 aircraft are expected to be about 25 per cent more fuel-efficient than existing aircraft. United’s order for new aircraft is a key boost for Airbus and Boeing in a year in which orders have dried up. Many carriers have been forced to cancel orders or postpone delivery because of the severe downturn in the aviation sector. Boeing, for example, had added only 13 orders for the 787 before the United announcement, but has lost 83 orders. • Michael O’Leary, the chief executive of Ryanair, the budget airline, has continued to apply public pressure on Boeing to conclude a deal for 200 new aircraft. Mr O’Leary said that he might shelve plans to place the $6 billion (£3.7 billion) order because Boeing wanted to change the delivery conditions. “We have effectively almost reached agreement on price for a 200-aircraft order ... but the deal is unlikely to take place because now they want to go back and change delivery conditions,” he said.