Rolls-Royce Wins New Engine Contracts

Rolls-Royce, under pressure after successive profit warnings, said its aero-engine business won two new contracts for a total of USD$2.23 billion.

Rolls-Royce said that it had been selected by Saudi Arabian airline SAUDIA to provide engine maintenance and servicing for its Trent 700 engines on 20 A330 aircraft under a long-term contract worth USD$1.3 billion.

The other contract was to supply International AirFinance Corporation with Trent 700 engines for 20 A330s in a USD$930 million deal.

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.

"We welcome our customer's continued confidence in the Trent 700 as the best solution for fuel burn, emissions and noise performance," Eric Schulz, Rolls-Royce president of civil large engines, said.