London: Emirates airline has signed a $9.2 billion deal with British engine maker Rolls-Royce to supply engines to the 50 Airbus A380 aircraft it ordered at the Dubai Airshow in 2013, President Tim Clark said in London on Friday.
The deal for more than 200 Trent 900 engines and long-term after care is the largest ever order for Rolls-Royce, which is cutting 2,600 jobs in an attempt to reduce costs. It is also the largest ever non-defense order to a British engineering firm and is worth nearly three quarters of UAE-UK trade in 2013 that was valued at an estimated $13.4 billion.
Emirates, the largest operator of the world's largest passenger jet, the A380, with a total of 140 on order, elected to go with Rolls-Royce after a “rigorous selection process,” Clark said at a press conference, that included bids from Engine Alliance, a joint-venture between General Electric and Pratt & Whitney that powers Emirates’ existing A380s.
Rolls-Royce offered an unspecified improvement on fuel efficiency compared to the Engine Alliance bid, however, it was the British engine makers commitment to the A380 engine that tipped it in their favour, Clark said.
“We have been impressed by their continuing improvement to the economic and operational performance of the Trent 900,” he said.
Clark added that he was “impressed” by Rolls-Royce “continued commitment” to the engine, including in their back of house operations, that he could see with Engine Alliance.
Engine Alliance has a contract to supply engines for 90 A380s. Emirates has 60 A380s in operation today.
Clark also suggested Rolls-Royce could make the engine for the A380neo (next generation) that Emirates has been calling on Airbus to commit to for several months. Clark said that Rolls-Royce’s XWB engine, or a similar model, which is used on Airbus’ A350 could be used on the A380neo. Emirates cancelled an order for 70 A350s last year.
Rolls-Royce Chief Executive, John Rishton, said the British engine maker would be interested in manufacturing an engine for the A380neo if Airbus was to commit to it.
The $9.2 billion deal, of which the engines are valued at $6.1 billion at list prices, was hailed by both Clark and Rishton as a “historic” agreement that will “secure thousands of jobs.” Rishton declined to commit to how many jobs would be generated by the deal and said that with no additional investment needed to meet the Emirates order that the 2,600 job cuts announced last November will still go.
The Rolls-Royce Trent 900 engines will be first used on a batch of 25 A380s that Emirates is scheduled to receive between late 2016 and 2018. Clark said he hoped to start receive the second batch of 25 A380s from 2019 or 2020.
