Rolls-Royce wins $5bn contract from Delta Airbus $14bn deal
Rolls-Royce Holdings plc announced a $5 billion contract to supply aero engines after Delta Air Lines confirmed an order for 50 new Airbus aircraft. The order also includes the provision of a “TotalCare” support package – long-term delivery services.
Rolls-Royce is to provide the Trent XWB engines for 25 Airbus A350s and Trent 7000 engines for 25 Airbus A330neo aircraft. It is the only jet-engine maker that supplies for both types of aircraft.
Analysts had expected Delta to opt for Boeing’s 787 Dreamliner. The Airbus order is to replace its old Boeing planes.
Delta Air Lines, based in Georgia, Atlanta, confirmed the $14 billion order on Thursday.
Airbus is believed to have clinched the deal because it promised to deliver its newest A330 in 2019, before Boeing’s 787 Dreamliner. The A350s will be delivered in Q2 2017.
The Trent XWB is the most efficient large civil aero engine in the world, and the fastest-selling widebody engine ever, says Rolls-Royce. (Photo: Rolls-Royce)
Delta says the new airplanes will reduce costs per seat by 20%.
Rolls-Royce has had a difficult 18 months that included four profit warnings and an announcement earlier in November that it was laying off 2,600 workers. In October, it warned that Russian economic sanctions were harming revenue.
Delta Air Lines Vice President of Fleet Strategy and Transactions Nat Pieper said: “We are pleased to be working closely with Rolls-Royce to power aircraft that will be a vital part of our future, providing a new level of excellence on our Pacific, Atlantic and Latin American routes.”
John Rishton, CEO of Rolls-Royce, said: “We are proud to be selected to power Delta’s new generation of aircraft and look forward to deepening our relationship with a long-standing and valued customer. It is further evidence of the success of the Trent XWB in the market and represents a powerful vote of confidence in our newly-launched Trent 7000.”