Rolls-Royce success

With its long-term future not under doubt, the sole engine provider for the Airbus A350,  Rolls-Royce has been under pressure after successive profit warnings and with it a reduction of staffing.

The Derby-based engine manufacturer said that it had been selected by Saudi Arabian Airlines (Saudia) to provide engine maintenance and servicing for its Trent 700 engines on 20 A330 aircraft under a long-term contract worth US$1.3bn.

It has also announced a deal to supply International AirFinance Corporation with Trent 700 engines for 20 A330s worth US$930m.

The contract wins for the Trent 700 come after Rolls-Royce said earlier this month that low demand and pricing for that engine model would result in significant hits to profits in 2016.  Just two weeks ago Warren East replaced John Rishton, who had only held the position for four years, as Chief Executive.  East, was previously a Rolls-Royce Non-Executive Director, but is best known as CEO for ARM Holdings 2001 to 2013.  Under his leadership ARM became one of the world’s leading developers of semi-conductors. 

Rolls-Royce will publish its half year results on 30 July.  www.rolls-royce.com

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