Airbus (EADSF) has received a major blow after Dubai's Emirates airline cancelled its entire purchase of 70 Airbus A350 jets. The cancellation also stung engine maker Rolls-Royce (RYCEY), the sole engine maker for the A350.
The deal, which closed in 2007, was worth around $16B ($22B based on the current price catalog). Rolls-Royce commented that the cancellation will result in a £2.6B ($4.4B) loss from its order book.
Siemens (SI) announces a corporate overhaul which will reorganize the company into nine divisions, see its healthcare business managed separately, and its audiology activities publicly listed; SI also confirms it is buying Rolls-Royce's (RYCEY) energy business.
The £785M ($1.32B) purchase, plus £200M as part of a 25-year development services agreement, aims to strengthen SI's power generation and transmission business.
Nine divisions will replace SI's four sectors, with healthcare being added an additional unit; the company expects the moves to help boost productivity by ~$1.5B, fully effective by the end of FY 2016.
Iran would purchase 400 new aircraft over 10 years if sanctions were lifted, the country's top aviation official reportedly says. The country has been banned from purchasing new Western airliners since the 1970s.
Of Iran's 250 commercial planes, about 150 are flying and the rest are "not functional" because of a lack of spare parts. The average age of the nation's commercial fleet is 22 years.
Under the recent deal with the international community over its nuclear program, Iran is allowed to acquire spare parts and services on a limited basis.
Companies that could benefit from Iran being allowed to buy aircraft include Boeing (BA), Airbus (EADSY), Bombardier (BDRAF), Embraer (ERJ), GE (GE) and Rolls-Royce (RRCEF).
GE will supply engines to power new A330 aircraft for Malaysian budget airline AirAsia X Bhd. in a deal valued at more than $1.5B and the largest of three announced by during Pres. Obama's tour of the country.
GE will supply engines and related maintenance for 25 new A330 aircraft for AirAsia X, boosting the number of engines GE will have provided parent AirAsia Bhd. to 600.
With the order, GE becomes AirAsia X's second core engine supplier, along with Rolls-Royce (RYCEY).
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.
Pratt & Whiney (UTX +0.8%) and Rolls-Royce (RYCEY.PK +0.3%) unveiled plans for the joint venture two years ago, but cite the regulatory environment as reason for abandoning it.
"Pratt & Whitney remains fully committed to this important market segment and will continue independently to invest in and develop applications of its geared turbofan engine to power the next generation of mid-sized aircraft."
Paris Air Show: Rolls-Royce (RYCEY.PK -1.4%) says it wants to cut costs right across its aero-engine business to match the productivity of its major competitors, even as the U.K. engineering company ramps up production to meet booming demand for more fuel-efficient passenger jets. The company says it plans to slim down its portfolio, targeting increased sales of a narrower range of products.
Alliant Techsystems (ATK +0.6%) says it's landed a $50M contract from Rolls-Royce (RYCEY.PK +0.2%) to produce aft fan composite cases for the new Trent XWB-97 engine. The contract has the potential to grow to more than $200M.
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.
Brazil's Embraer (ERJ -5.8%) selects United Technology's (UTX -1.2%) Pratt & Whitney geared turbofan engine to update its regional E-Jet line, displacing incumbent GE Aviation (GE -1.2%), who has delivered more than 2K engines on ERJ's current family of regional jets. Rolls Royce (RYCEY.PK -0.6%) had also been competing for the contract as well.
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.
Farnborough: GE (GE -0.35%) plans to start testing an upgraded version of its GE90 engine next year as it vies with Pratt & Whitney (UTX) and Rolls Royce (RYCEY.PK) to equip Boeing's (BA) next-generation 777. The plane will be made with the composite materials used in the 787 Dreamliner, making it lighter and cutting thrust requirements. (More on Air show)
Rolls-Royce (RYCEY.PK) plans to start searching for a new chairman, according to reports. The company seeks to increase international diversity on its board, including taking a look at U.S.-based candidates for the chairman post.
Patent suit pits Pratt & Whitney vs. Rolls Royce over design of a fan blade in two of its engines $RYCEY.PK
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Alex B. Gray+ FollowFollowing- Unfollow|Send Message5 Nov 2010
Rolls-Royce Group RYCEY.PK drops nearly 6% to $47.28.
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RYCEY vs. ETF Alternatives
Rolls Royce Group is a provider of power for use on land, at sea and in the air. Co. operates through its offices, service centers or manufacturing facilities in 50 countries. Through its subsidiaries and joint ventures, Co. operates in the following business segments: Civil Aerospace, Defense,...More