Rolls-Royce loses £2.6bn engine order after Emirates cancels Airbus purchase

Dubai-based airline had ordered 70 A350 planes in 2007, the engines for which UK engineering firm is sole manufacturer and supplier

Rolls-Royce has lost jet engine orders worth £2.6bn after Emirates airline cancelled a planned purchase of 70 A350 aircraft from Airbus.

The Dubai-based airline had ordered the planes from Airbus in 2007, due for delivery in 2019.

Rolls-Royce is the sole manufacturer and supplier of the engines for the A350, seen as Airbus's answer to Boeing's Dreamliner.

The British engineering firm, which has bases in Derby and Bristol, said the cancellation would shave 3.5% from its order books, but was hopeful that other airlines would fill the delivery slots.

It had already warned of stalling profits and revenues due to defence spending cuts. Its shares fell 2.5% to £10.51 on news of the loss of the Emirates order.

Rolls-Royce said: "Demand for the Airbus A350 remains strong, with more than 700 aircraft and 1,400 Trent XWB engines already sold. We retain a close working relationship with Emirates and continue to support their 38 Rolls-Royce-powered wide body aircraft currently in service."

Emirates is by some distance the world's largest purchaser of Airbus's superjumbo, the A380, and retains a close relationship with the European manufacturer, ordering 50 more A380s at the last Dubai air show.

Airbus said the decision followed ongoing discussions as Emirates reviewed its fleet requirements.

It said: "Airbus and Emirates benefit from a long-standing relationship and the airline recently reiterated its confidence in Airbus products particularly by praising the A380 and the benefits the aircraft brings to their operations."

Airbus said it remained confident in its A350s, with 742 firm orders ahead of the plane's entry into service later this year.


Gwyn Topham, transport correspondent

The GuardianTramp

Related Content

Article image
Rolls Royce wins $1.8bn engine order from another Chinese Airline
Rolls Royce's Air China contract will deliver Trent XWB engines for 10 A350 planes and Trent 700 engines for 10 A330s

Tim Webb

22, Nov, 2010 @6:35 PM

Article image
Rolls-Royce weathers engine fault storm
Its shares have rebounded after the Qantas explosion, but will Rolls-Royce emerge totally unscathed?

Tim Webb

12, Nov, 2010 @7:38 PM

Article image
Virgin Atlantic bailout backed by Rolls-Royce, Airbus and Heathrow
Transport secretary Grant Shapps urged to help airline, which seeks large cash injection

Gwyn Topham Transport correspondent

01, Apr, 2020 @4:47 PM

Article image
Rolls-Royce secures its largest engine order with £6.1bn Emirates deal
Dubai-based airline orders 200 Trent 900 engines for 50 Airbus A380 superjumbos entering service from 2016

Julia Kollewe

17, Apr, 2015 @11:46 AM

Article image
Rolls-Royce makes £2.9bn loss as engine fault costs £790m
Earnings of £616m wiped out by exceptional costs, including faults with Trent 1000 engine

Rob Davies

28, Feb, 2019 @6:13 PM

Article image
Qantas seeks legal redress against Rolls-Royce over engine failure
Qantas has taken the first step towards suing Rolls-Royce over the problems with its Trent 900 engine

Alex Hawkes

02, Dec, 2010 @2:50 PM

Article image
Airbus and Rolls-Royce say UK must quickly get beneficial EU trade deals
Two of Britain’s biggest manufacturers say favourable agreements have to be reached speedily to avoid jeopardising investment

Graham Ruddick

12, Jul, 2016 @5:07 PM

Article image
Rolls-Royce plays down Airbus fears while Qantas keeps fleet grounded
Engine maker insists Dreamliner not affected by fault while shares rebound by 2.7% despite setbacks

Tim Webb and Dan Milmo

08, Nov, 2010 @9:11 PM

Article image
Rolls-Royce missed several chances to fix A380 engine problem – safety report
Australian Transport Safety Bureau says company knew three years before Qantas blowout that parts failed to meet standards

Jennifer Rankin

27, Jun, 2013 @9:32 AM

Article image
Rolls-Royce wins $2.7bn aircraft engine order from Norwegian
Dreamliner deal provides lift for struggling firm two weeks before annual results

Graham Ruddick

01, Feb, 2016 @7:34 PM