A decision by Emirates, the Dubai-based airline, to cancel an order for 70 new Airbus A350s has cost Rolls-Royce (RR.) £2.6bn of work. It's the sole engine supplier for the fuel-efficient mini-Jumbo expected to begin carrying paying passengers within six months. Of course, this is a blow, but firm orders for 742 A350s requiring almost 1,500 of Rolls' Trent XWB engines, will keep the engineer busy for years.
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Indeed, as Rolls ramps up production, increased capacity utilisation should improve profits, and Airbus should have little problem replacing Emirates which wasn't due to take first delivery until 2019.