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Wed 24 Nov 2010 05:39 PM

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Emirates signs $1.2bn deal with Rolls-Royce

Contract is for long-term service and support of 50 of the carrier’s wide bodied aircraft

Emirates signs $1.2bn deal with Rolls-Royce
DUBAI CARRIER: Dubai’s Emirates Airline has signed a $1.2bn agreement with Rolls-Royce for the servicing of 50 of its wide-bodied aircraft (Getty Images)

Dubai’s
Emirates Airline has signed a $1.2bn agreement with Rolls-Royce for the
servicing of 50 of its wide-bodied aircraft, the carrier announced on
Wednesday.

The
engine manufacturer will provide TotalCare long term services support for Trent
700 engines powering 29 Airbus A330 aircraft and Trent 800 engines powering 21
Boeing 777 aircraft.

“These
agreements will extend the business relationship and strengthen the partnership
between the two companies. This will also provide a better platform for
effective management of engine life cycle costs and enhanced engine
reliability,” said HH Sheikh Ahmed bin Saeed Al Maktoum, chairman and CEO of
Emirates Airline and Group.

Rolls-Royce
services the engines of more than 600 airlines and last year invested £864m
($1.362bn) in research and development. The British firm has been working in
the Middle East for 32 years and the Trent 700 has an 80 percent share of the
aircraft engine market in the region.

Earlier
this month, Rolls-Royce Group said its underlying profit will be “slightly
lower” than the four percent to 5 percent it forecast in July. The drop is
revenue is as a result of the fallout from an engine explosion on a Qantas A380
aircraft in early November.

The
blowout was caused by the failure of a “specific component in the turbine,”
Rolls-Royce said.

However,
Rolls-Royce could face a hit to its reputation should the investigations bring
to light any design flaw with the Trent 900, Fitch Ratings said on November 8.
Emirates President Tim Clark said in a November 10 interview that the incident
is a “wake-up call” for the engine maker, which must stamp out any possibility
of a repeat to avoid tarnishing the A380’s image.

 

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