British engine maker Rolls-Royce Grp Plc (RR.L) Thursday said it has won a $1.2 billion worth engine supply contract from Jetstar Airways, a wholly-owned subsidiary of Qantas Airways Limited (QUBSF.PK,QAN.AX).
The contract includes an order of V2500 engines to power 50 Airbus A320 family aircraft, with options and purchase rights on for an additional 40 engines. The contract also included a long-term engine service agreement for the aircraft as well as engines installed on 40 aircraft already operated by the three Jetstar Group airline brand businesses.
The aircraft would be distributed amongst the Jetstar Group fleet that included investments by Qantas in low cost carriersJetstar Asia and Valuair of Singapore, and Jetstar Pacific of Vietnam.
Australian low fare airline Jetstar reportedly said it secured engine supply and service agreements worth as much as $3.5 billion with International Aero Engines, or IAE. The V2500 engines are produced by the IAE consortium, in which Rolls-Royce is a senior shareholder. IAE's other partners are Pratt & Whitney, the Japanese Aero Engines Corporation and MTU Aero Engines. More than 5,500 V2500 engines are in service or on firm order worldwide.
In November, Rolls-Royce has received orders worth more than US$2.3 billion during the biennial Dubai Air Show from airline operators based in Asia, Middle East, and Africa. The company won orders both in the civil and defense sectors. The biggest order came from Air China, the state-owned commercial airline in China, for US$ 1.5 billion.
RR.L is currently trading at 480.40 pence per share, up 1.48%, on the London Stock Exchange.
QUBSF.PK closed Wednesday's regular trading at US$2.45 per share.
QAN.AX is currently trading at A$2.87 per share, up 1.06%, on the Australian Stock Exchange.
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