Economics

Rolls-Royce signs 'multi-million' engine deal

The order will see 18 engines built and maintained by the company from its Derby aerospace centre.

Rolls-Royce secures 'multi-million' engine contract

The deal covers both the engines and a maintenance package

Rolls-Royce has advanced a deal to power a new fleet of Airbus long-haul jets for Philippine Airlines.

The FTSE-100 company will supply 18 engines for nine new Airbus A350-1000 aircraft in an agreement worth "hundreds of millions of pounds".

Once completed, the deal also includes a maintenance package, meaning Rolls-Royce will keep servicing and monitoring the engines throughout their working life, officials said.

The government welcomed the agreement, saying it would create "good quality jobs" at the company's Derby base.

The order was first revealed as a memorandum of understanding at the Farnborough International Airshow in July.

At that point, Rob Watson, president of civil airspace at Rolls-Royce, said the company was "proud to continue strengthening our long-standing relationship with Philippine Airlines".

Although the deal is described as being worth "hundreds of millions", the exact value has not been confirmed.

Airbus designs and builds the wings for all its commercial aircraft at its Broughton site in North Wales.

Minister for trade Anas Sarwar said: "This news shows British engineering is flying high with world-class innovation that puts our companies at the front of the pack.

"Building these engines and wings brings good quality jobs to Derby and Broughton, and means UK expertise is at the heart of thousands of flights by one of the fastest-growing airlines around the world."

The engine involved, the Trent XWB-97, can run on a 50% sustainable aviation fuel blend, with plans for it to operate on 100% sustainable aviation fuel in the future.

This order comes after Philippine Airlines's earlier order for nine Trent XWB-97-powered Airbus A350-1000 in 2023.

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