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LONDON (Alliance News) - In aviation contract news Monday, Rolls-Royce Holdings PLC said it has won a contact to supply the new Airbus A330neo with its Trent 7000 engine as easyJet PLC said it has appointed CFM International S.A. as its engine supplier.
FTSE 100-listed Rolls-Royce said Airbus has selected its new Trent 7000 as the exclusive engine for the new aircraft, the seventh Trent engine in the series.
The company said the 68-72,000 pound thrust Trent 7000 will deliver a "step change in performance and economics compared to the current version of the Trent 700." It will improve specific fuel consumption by 10%, have twice the bypass ratio and will halve perceived noise, said Rolls-Royce.
The first engine test run for the Trent 7000 is planned for 2015 with certification expected in 2017, supporting an aircraft entry into service in Q4 2017, said the company.
Fellow FTSE 100-consituent easyJet also announced Monday that it has appointed CFM International as its engine supplier. Under the terms of the deal CFM will provide 270 engines to power its firm order of 35 Airbus current generation A320 aircraft and 100 Airbus new generation A320neo aircraft. CFM will also provide engines for any future exercise of the 100 purchase rights over new generation aircraft, said the low-cost airline.
The current generation aircraft, planned for delivery between 2015 and 2017, will be powered by CFM56-5B engines and the new generation aircraft, planned for delivery between 2017 until 2022, will be powered by CFM LEAP-1A engines.
The contract was won by CFM following a "thorough selection process," said easyJet. Also bidding for the contract was US aerospace manufacturer Pratt & Whitney.
"Both engine manufacturers wanted to win our business and competed hard... Ultimately CFM offered us the best overall deal," said easyJet Chief Executive Carolyn McCall. Following negotiations with CFM, easyJet achieved a modest improvement in pricing of the overall framework arrangements, it said.
Airbus Group Monday launched the A330-800neo and A330-900neo aircraft, two new members of its Widebody Family, which will incorporate the Rolls-Royce Trent 7000 engines, aerodynamic enhancements and new cabin features.
?The A330 is a very important margin contributor for our group," said Tom Enders, CEO of Airbus Group. "It?s also one of the most reliable and efficient commercial aircraft ever. Customers love it... The development costs for the A330neo will be incurred from 2015 to 2017 with an impact of around -70 basis points on Airbus Group?s 2015 Return on Sales target. However, we have a very good business case and the A330neo, once in service, will continue to significantly contribute to our group?s earnings."
Announced later Monday, US aircraft leasing company, Air Lease Corporation has ordered 25 Airbus A330-900neo aircraft, powered by the Trent 7000 engine. The company has previously ordered Trent XWB engines for 25 A350XWB aircraft, Trent 1000 engines for four Boeing 787 Dreamliner aircraft, and Trent 700 engines for three A330 aircraft.
Rolls-Royce shares were quoted 1.16% higher at 1,049.00 pence per share Monday. EasyJet shares jumped in early trading before dropping; the stock now trades 0.87% lower at 1,255 pence per share, the second biggest faller on the FTSE 100.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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