Rolls-Royce gets £500m lift from BA Airbus engine order

Rolls-Royce will make more than £500m from last week’s British Airways decision to choose the International Aero Engines (IAE) V2500 turbofan to power up to 188 Airbus airliners. The planes were ordered last week in a separate multi-billion pound deal. The total value of the V2500 engine business for 59 Airbus A319 and A320 short-haul […]

Rolls-Royce will make more than £500m from last week’s British Airways decision to choose the International Aero Engines (IAE) V2500 turbofan to power up to 188 Airbus airliners.

The planes were ordered last week in a separate multi-billion pound deal.

The total value of the V2500 engine business for 59 Airbus A319 and A320 short-haul airliners, plus another 129 mixed options, is £1.5bn to the IAE partners. Deliveries of the new engines to Airbus begins in September 1999 and could extend to 2006.

The contract takes IAE’s 1998 share of firm orders for A320 series aircraft to 61%. So far this year, the V2500 has been specified for a total of 436 Airbus aircraft both firm orders and options with engine sales potentially worth £3.4bn.

The V2500 is built by IAE’s joint senior partners, Rolls-Royce and Pratt & Whitney. The consortium also includes Japanese Aero Engines and MTU Daimler-Benz. Airbus’s US rival, Boeing, has complained the order was only made possible because of unfair pricing by Airbus.