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Rolls to land GBP2 billion jet engine deals
January 18, 2004 8:19am
Europe Intelligence Wire

ROLLS-Royce is poised to announce orders worth at least GBP2 billion
to supply jet engines for the RAF and the Middle East airline
Emirates.
The Ministry of Defence will reveal in the next ten days that it has
awarded a GBP13 billion contract to a European consortium to supply
the RAF with about 20 air-to-air refuelling aircraft.
The tanker aircraft – Airbus 330s – will be powered by Trent 700 jet
engines made by Rolls-Royce in Derby. The value of the order will be
about GBP1 billion over 20 years.
The aero-engine giant will also supply the engines that Emirates
wants for new Boeing 7E7s it is thought likely to order in the next
few months.
The Boeing order is reckoned to be worth many billions of pounds.
It will provide the first positive news for the American planemaker
after a troubled 12 months in which it failed to win the RAF tanker
order and lost its place as ‘the world’s No 1 plane manufacturer’ to
Airbus.
An Emirates spokesman said: ‘Intensive talks are taking place with
Boeing, but it is too early yet to say whether we will place an
order.’ It has also emerged that British jobs could be in jeopardy as
the bosses of EADS, the European aerospace and defence group, and its
offshoot Airbus Industrie, argue over whether planes to fill future
orders should be built in America.
EADS’ French joint boss has floated the idea of moving future plant
investment to the US. But Airbus boss Noel Forgeard is not in favour.
He said: ‘We don’t see how new investments in the dollar zone could
provide a sensible answer to our economic concerns.’ Airbus union
leaders have warned that a US move could threaten jobs at the plant
in Broughton, Flintshire, that makes wings for Airbus.

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