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Rolls-Royce Lands Multi-Million Engine Deal with Philippine Airlines

Rolls-Royce will supply 18 Trent XWB-97 engines for nine Philippine Airlines A350-1000s in a deal worth "hundreds of millions of pounds", plus lifetime servicing.

By Nathan Brooks

2 min read

Updated

Rolls-Royce signs 'multi-million' engine deal
Rolls-Royce signs 'multi-million' engine dealAI-generated

What's News

  • Rolls-Royce will provide 18 Trent XWB-97 engines for nine Airbus A350-1000 aircraft in a deal worth "hundreds of millions of pounds".
  • The agreement includes a maintenance package covering servicing and monitoring for the engines' operational life.
  • The order follows Philippine Airlines' 2023 order for nine Trent XWB-97-powered A350-1000s; the Trent XWB-97 can run on a 50% sustainable aviation fuel blend.

Rolls-Royce will supply 18 Trent XWB-97 engines for nine new Airbus A350-1000 aircraft ordered by Philippine Airlines, in a deal the FTSE-100 company describes as worth "hundreds of millions of pounds".

The agreement, once finalised, also includes a maintenance package. Rolls-Royce will service and monitor the engines throughout their operational life, officials said. That long-tail servicing revenue matters: engine makers typically earn more from decades of maintenance contracts than from the initial sale.

The precise value of the deal has not been confirmed.

The order began as a memorandum of understanding signed at the Farnborough International Airshow in July. At the time, Rob Watson, president of civil aerospace at Rolls-Royce, said the company was "proud to continue strengthening our long-standing relationship with Philippine Airlines".

The UK government moved quickly to claim credit. Trade minister Anas Sarwar said: "This news shows British engineering is flying high with world-class innovation that puts our companies at the front of the pack."

"Building these engines and wings brings good quality jobs to Derby and Broughton, and means UK expertise is at the heart of thousands of flights by one of the fastest-growing airlines around the world," Sarwar added.

The deal shores up employment at Rolls-Royce's Derby base. Airbus, for its part, designs and manufactures wings for all its commercial aircraft at its Broughton site in North Wales, meaning the order supports two of Britain's flagship aerospace manufacturing hubs.

The Trent XWB-97, the largest variant of Rolls-Royce's Trent XWB family, can already operate on a 50% blend of sustainable aviation fuel. The company plans for the engine to run on 100% sustainable aviation fuel in the future — a critical capability as airlines face mounting regulatory and investor pressure to cut lifecycle emissions on long-haul routes.

This is Philippine Airlines' second order for the same engine-and-airframe combination. The carrier ordered nine Trent XWB-97-powered Airbus A350-1000 jets in 2023, making Rolls-Royce the incumbent supplier for its flagship long-haul fleet.

For Rolls-Royce, the repeat business extends a lucrative franchise. The Trent XWB is the exclusive powerplant for the A350 family, and each new order deepens the installed base that feeds the company's long-term services agreements.

The Philippine flag carrier, which Sarwar called "one of the fastest-growing airlines around the world", is doubling down on long-haul capacity — and doing so exclusively with Rolls-Royce power. With the maintenance package attached, Derby will keep earning from these engines long after the last of the nine jets leaves the assembly line.

Source: BBC Business

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Nathan Brooks

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News editor covering marketplaces and e-commerce at Business Bearings.

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