Aero-engine makers seek boost from major Airbus China deal
Updated: 2015-07-02 10:23
(Agencies)
|
|||||||||||
|
Airbus's company logo is pictured at the Airbus headquarters in Toulouse, December 4, 2014. [Photo/Agencies] |
After Airbus's success it was the turn of engine makers to seek a boost from China's spending power on Tuesday as a major plane order generates lucrative follow-on opportunities.
China placed an order for 45 A330 wide-body passenger jets on Tuesday, with plans for a possible further 30 aircraft in a deal worth between $11 billion and $18 billion.
The order has now unleashed a battle between engine makers to win contracts with Chinese airlines who may ultimately benefit from the the aircraft purchase, industry sources said on Wednesday.
Engines are generally sold separately from aircraft.
The aircraft ordered by China are current-generation A330s, which are available with a choice of engines from three manufacturers: General Electric, United Technologies' Pratt & Whitney unit and Britain's Rolls-Royce.
Rolls-Royce is currently the market leader with its Trent 700 engine, but the Chinese order presents one of the largest available opportunities for rivals, notably GE, to jump in before Airbus switches to an exclusively Rolls-powered version of the A330, with a new engine, from late 2017.
Rolls-Royce appears to have the edge going into the sales battle, a person closely watching the discussions said.
The outsider is seen as Pratt & Whitney which is focused on completing a new engine design for smaller jets and has not been forceful in pushing its A330 engine in recent years.
Pratt & Whitney said it continued to support the PW4000 engines designed for aircraft such as the A330, and that it did not as a policy comment on specific order discussions. GE and Rolls did not immediately respond to requests for comment.
Shares in Airbus rose as much as 5 percent on the aircraft order, which eased uncertainty over future production rates for one of its most profitable models.
Related Stories
China, France ink Airbus A330 deal during Li's visit 2015-07-01 15:54
China may buy 50-70 Airbus A330 jets 2015-06-24 07:56
Families mourn victims of Airbus A320 crash 2015-03-25 04:45
Airbus delivers 153 aircraft to China in 2014 2015-01-30 10:57
China signs deal with Airbus to buy 45 A330 planes 2015-07-01 06:48
Today's Top News
China-France partnership 'will benefit all'
Solar-powered plane breaks solo flight record across Pacific
Uygur life in the city of Kashgar
Parade in Beijing will 'surprise'
BP says settles US 2010 oil spill claims for $18.7b
Britain identifies all 30 British victims in Tunisian attack
BBC says to cut more than 1,000 jobs
Premier Li welcomes OECD's role in China's modernization
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
Premier Li's visit to Belgium and France |
What do we know about AIIB |
Full coverage of Boao Forum for Asia |
Annual legislative and political advisory sessions |
Festival Special: Apps that make holiday shopping easier |
Listed firms caught in anti-corruption net |