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Rolls Royce brushes off cancellation

A small order cancellation is unlikely to be the start of a trend
July 30, 2014

Rolls Royce (RR.) suffered a minor setback this week with news that Airbus had terminated an order for six A380 aircraft from Japanese airline Skymark which had been scheduled for delivery during this year and next.

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The deal, which included Rolls' Trent 900 engines and an aftercare package, was worth £351m to Rolls. But, to put this into context this in only 0.5 per cent of Rolls' £71bn-plus order book and the cancellation bucks a trend which has seen strong orders announced for Trent engine-powered Airbus planes including more than 20 orders placed in the second half of July alone across four different smaller regional airlines. Rolls has generated particularly strong interest from the recent launch of its new Trent 7000 engine which is designed to deliver upgraded performance including better fuel efficiency and less noise.