Rolls-Royce secures £6.1bn deal with Emirates

<p>The order is the biggest the company has ever received.</p>

Rolls-Royce has received an order from Emirates airline for 200 Trent 900 engines.

The deal, valued at £6.1 billion, is the largest in the engine manufacturer's history and comes shortly after another large order from Air China valued at £665 million.

Emirates will use the engines to power 50 new Airbus A380 superjumbos, which will enter service in 2016.

Both deals come after a tough year for the group – the first in a decade to include a fall in annual sales. This led to a series of profit warnings and plans for 2,600 job cuts globally – around 1,700 are expected to go in the UK. The news has boosted the company's share price, but the deal will not lead to any new British jobs.

Rolls-Royce says the Emirates deal confirms that the Trent 900 is the "engine of  choice" for the A380. The company has more than a 50 per cent market share for the superjumbo.

The engine was first used for a commercial A380 in 2007 and is now used in more than 70 aircraft across eight operators.

According to Rolls-Royce, the engine is extremely fuel efficient, and the latest model includes technology that was developed for its other engines – the Trent XWB and Trent 1000.

Chief executive at Rolls-Royce, John Rishton, said he was delighted about the deal. "Emirates has again placed its trust in our technology, with the biggest order in our history," he said.

Emirates has been using Rolls-Royce engines in its fleet of aircraft since 1996.

Terry Scuoler, chief executive of manufacturers' organisation EEF told the Guardian that the deal is a huge boost for the UK industry. He sees it as a vote of confidence in British engineering.

"The aerospace sector is critical for manufacturing and high-skill jobs, in particular the many companies that cascade down through the supply chain,"' he added.

During the announcement in London, Sir Tim Clark, president of Emirates called Rolls-Royce a key partner. He explained that continual improvements in the economic and operations performance of the Trent 900 had been decisive factors when choosing the engine for the A380s.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.