19th Apr 2016 14:42
LONDON (Alliance News) - The UK government Tuesday said Rolls Royce Holdings PLC and Airbus have signed agreements worth GBP4.00 billion with the national carrier of Indonesia covering the upgrade of some of the airline's fleet.
Garuda Indonesia has signed the deal with Rolls Royce and Airbus, which will see the pair upgrade the airline's 14 A330s to the newer A330neo, which will be worth nearly GBP1.00 billion to the UK economy, according to the government.
The deal has been signed on the first day Indonesian President Jokowi's two-day visit to Britain.
Rolls Royce, specifically, has signed an agreement covering for the provision and aftercare of Rolls-Royce engines. It was not revealed how much of the GBP4.00 billion deal is attributable to the London-listed firm.
"Indonesia has great economic prospects and we are committed to supporting its future growth in air travel. This year marks the 20th anniversary since we first provided Trent engines to Garuda Indonesia and we are proud to power this latest expansion to their fleet with the very latest member of our Trent engine family," said Eric Schulz, president of Rolls Royce's Civil Aerospace.
"In creating this family, we have benefited from UK investment in innovation across materials, aerodynamics, noise, control systems and manufacturing technologies," he added.
Rolls Royce shares were up 4.1% to 692.50 pence per share on Tuesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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