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Friday 15 December 2023 3:56 pm

Airbus and Rolls-Royce ink multi-billion pound deal to build planes for Turkish Airlines in the UK

By: Rupert Hargreaves

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What's next for the Rolls-Royce share price?
What's next for the Rolls-Royce share price?

Airbus and Rolls-Royce have today announced they have been picked by Turkish Airlines to supply the carrier with 220 new aircraft.

The planes, a mix of A321 and A350 models, will be manufactured by Airbus for the most part in the UK, with the engines supplied by Rolls-Royce.

The 70 A350 aircraft will be powered by Rolls-Royce Trent XWB engines, which are assembled and tested in Derby, and are 25 per cent more efficient than similar models.

Rolls-Royce chief Tufan Erginbilgic said: “Today’s announcement marks an exciting and truly historic day for Rolls-Royce. It is proof that the actions we are taking to transform Rolls-Royce into a high-performing and competitive company underpinned by profitable growth are working.”

The deal is the latest boost to the UK manufacturing industry, which has shrugged off economic concerns and the disruption of Brexit in 2023.

It follows Nissan’s £2bn in electric electric vehicle production in Sunderland and Tata’s £4bn new UK gigafactory.

Last month the government also announced £4.5bn of funding for British manufactures as part of its efforts to improve the country’s growth prospects and productivity.

The Treasury has also earmarked £1.4bn in funding for the aerospace industry over the next decade through the Aerospace Technology Institute Programme.

Business and Trade Secretary Kemi Badenoch said: “This is a big win for the UK’s world-leading aerospace sector and one that will help secure high-skilled jobs across the country and drive economic growth.

“These successes show our plan for British manufacturing is working, and our recently released Advanced Manufacturing Plan will ensure the wins keep coming.”

Read more

Rolls-Royce share jump as profit beats expectations

Rolls-Royce is a member of the FTSE 100. Credit - Getty.

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