UK-based airline engine producer and servicer Rolls-Royce (RR.LSE) secured a US$1.8 billion contract from Air China (601111.SH, 0753.HK), Reuters reported. Under the new deal, Rolls-Royce will provide engines for Air China’s 10 Airbus A350 XWB planes and 10 Airbus A330s. It is good news for the firm, which has recently been haunted by safety questions after one of its engines on a Qantas (QAN.ASX) Airbus A380 flight failed in early November, forcing the plane to make an emergency landing and raising speculation that the company may need to replace other engines. Rolls-Royce shares have dropped 10% since the incident. Yet Rolls-Royce also secured a US$1.2 billion contract with China Eastern Airlines (CEA.NYSE, 600115.SH, 0670.HK) earlier this month during a state visit to China by British Prime Minister David Cameron.
Categories