Rolls-Royce wins new engine contracts totalling $2.23b

Rolls- Royce selected by Saudia to provide engine maintenance and servicing for its Trent 700 engines

LONDON: British engineering company Rolls-Royce, under pressure after successive profit warnings, said its aero-engine business won two new contracts totalling $2.23 billion.

Rolls-Royce said that it had been selected by Saudi Arabian airline Saudia to provide engine maintenance and servicing for its Trent 700 engines on 20 A330 aircraft under a long-term contract worth $1.3 billion.

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The other contract was to supply International AirFinance Corporation with Trent 700 engines for 20 of the same jets in a $930 million deal.

The contract wins for the Trent 700 come after Rolls-Royce said earlier this month that low demand and pricing for that engine model would result in significant hits to profit in 2016.

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"We welcome our customer's continued confidence in the Trent 700 as the best solution for fuel burn, emissions and noise performance," Eric Schulz, Rolls-Royce president of civil large engines, said.