Emirates Airline has switched allegiances from Engine Alliance-powered A380s with a $9.2 billion order Friday for 200 Rolls-Royce Trent 900s and spares to power the carrier’s next batch of 50 superjumbos. Emirates placed the airframe order at the Dubai Air Show in 2013, but deferred choosing their engines while it negotiated with Airbus over a possible powerplant upgrade that would form the basis for a so-called A380neo. Emirates CEO Tim Clark said at a press conference in London that some of the order for the latest batch of 50 airplanes could stand subject to conversion to neos, but that possibility remains subject to deliberations with Airbus. Emirates has placed orders for 90 A380s powered by GP7200s, built under a partnership between Pratt & Whitney and GE. It has so far taken delivery of 60.
Plans call for start of delivery of the Trent 900-powered A380s next year. The deal ranks as the largest ever for Rolls-Royce, and one of the largest export orders ever for a UK-based company. It also promises to stem further job cuts at Rolls-Royce, which laid off 2,600 workers following the end of development work on the Trent 1000, which powers the Boeing 787, and the Trent XWB, which powers the Airbus A350.
“Rolls-Royce is a key partner for Emirates and we have been impressed with its commitment to continual improvements in the economic and operational performance of the Trent 900,” said Clark. “These improvements have been decisive factors in our selection of the product for 50 of our A380s. Today’s announcement is significant not only because it cements the partnership between Emirates and Rolls-Royce, but also because of the large and sustained economic impact that this will have on aviation manufacturing in the UK and Europe.”
Emirates made the historic order announcement in the UK just days after its rival Etihad Airways met with European Commission officials to underline the economic benefits it and other Gulf carriers bring to Europe. Last week, the U.S. government launched an investigation into allegations made by U.S. airlines that their Middle East competitors are benefitting from unfair government subsidies that undermine the terms of existing Open Skies market access agreements. Emirates also has been involved in lobbying efforts to refute these charges.
According to a recent report published by European consultancy Frontier Economics, and specifically highlighted by Emirates in its announcement, in 2013 and 2014 Emirates’ investment in the A380 created 7,000 UK jobs, amounting to a $630 million contribution to the company’s gross domestic product. Across the EU, Emirates’ 140 A380 orders have supported some 41,000 jobs, equivalent to $3.6 billion in GDP, said the report.
“Today’s announcement by Rolls-Royce of its largest ever order for aircraft engines is great news for the company and demonstrates world-class talent, ingenuity and capability in the UK aerospace industry,” said Paul Everitt, chief executive of UK aerospace trade organization ADS. “The positive impacts of this order will ripple through the supply chain, whether in the manufacture of engine blades, casings or other engine components.”