GE (GE) has obtained a $1B order to supply Vietnam Airlines with engines for a fleet of Dreamliners, with the conglomerate beating out competition from Rolls Royce (RRCEF.PK). The official signing of the deal is set to take place next month.
The carrier is due to start receiving 19 787-9 aircraft in 2015.
Once the Boeing (BA) 787's new battery system is approved and flights resume, its Rolls-Royce (RRCEF.PK) Trent 1000 engines will need extra inspections, the European Aviation Safety Agency says. The regulator is worried about the degradation of seals on the engines' intermediate pressure turbine section. The condition "could lead to an in-flight shut-down resulting in reduced control of the airplane," the EASA says.
Boeing's (BA) board may decide next month to start taking bookings for an updated 777, which would incorporate lightweight carbon-composite wings. Boeing is on the verge of deciding to offer airlines just GE engines for the plane rather than a choice, meaning that Rolls Royce would miss out. Separately, NTSB investigators are narrowing their 787 probe to the batteries rather than other components of the Dreamliner's electrical systems.
Rolls-Royce (RRCEF.PK) -3.2% in London after saying a company review has "identified matters of concern" in its business dealings in China, Indonesia and other markets. Rolls has passed its findings to the U.K.'s Serious Fraud Office, which had made a request for information about allegations of malpractice in Indonesia and China. The company will now appoint an independent auditor to look at its anti-corruption procedures. (PR)
All Nippon Airways grounded five of its 11 Boeing (BA -1.4%) 787 jets after endurance testing revealed a risk of corrosion on the planes' Rolls Royce engines, although three of the aircraft have been repaired and are flying again. The problem involves a gearbox provided by United Technologies (UTX -1.5%) unit Hamilton Sundstrand.