18 Engines: Rolls-Royce Signs Deal With Philippine Airlines

Rolls-Royce has finalized a deal to supply 18 engines for nine new Airbus A350-1000 aircraft ordered by Philippine Airlines, according to BBC News. The FTSE-100 company says the agreement is worth "hundreds of millions of pounds," though it has not confirmed a precise figure.

What did Rolls-Royce agree to build?

The order covers 18 Trent XWB-97 engines to power nine Airbus A350-1000 long-haul jets for Philippine Airlines. Rolls-Royce will build the engines at its Derby aerospace center in the UK, BBC News reported.

What does the deal include beyond the engines?

The agreement also includes a maintenance package. Rolls-Royce will continue servicing and monitoring the engines throughout their operational life, company officials told BBC News. The order was first announced as a memorandum of understanding at the Farnborough International Airshow in July, and has now moved forward into a finalized deal.

How much is the deal worth?

Rolls-Royce describes the contract as worth "hundreds of millions of pounds," per BBC News. The company has not disclosed an exact price for the 18 engines and associated maintenance work.

What jobs will the deal support?

UK trade minister Anas Sarwar welcomed the agreement, saying it would bring "good quality jobs" to Rolls-Royce's Derby base. Airbus, which designs and manufactures wings for its commercial aircraft at a site in Broughton, North Wales, is also tied to the order through its A350-1000 production.

"This news shows British engineering is flying high with world-class innovation that puts our companies at the front of the pack," Sarwar said, according to BBC News. "Building these engines and wings brings good quality jobs to Derby and Broughton, and means UK expertise is at the heart of thousands of flights by one of the fastest-growing airlines around the world."

What engine will power the new jets, and can it run on sustainable fuel?

The Trent XWB-97 engine can currently operate on a 50% sustainable aviation fuel blend, BBC News reported. Rolls-Royce has plans for the engine to eventually run on 100% sustainable aviation fuel, though no timeline for that transition was given in the company's statement.

"Proud to continue strengthening our long-standing relationship with Philippine Airlines." — Rob Watson, president of civil aerospace, Rolls-Royce

Watson's comment, made when the memorandum of understanding was announced at Farnborough in July, was reiterated by BBC News in its coverage of the finalized order.

How does this order compare with previous Philippine Airlines deals?

This is not Philippine Airlines' first order for Trent XWB-97-powered aircraft. The airline placed a previous order for nine Trent XWB-97-powered Airbus A350-1000 jets in 2023, according to BBC News. The new 18-engine deal effectively doubles the airline's commitment to the same aircraft-engine combination over roughly three years.

Rolls-Royce has not said when deliveries of the new engines will begin or how the Derby workforce will be affected in terms of headcount. The company's Derby site has been the subject of other recent investment announcements, including plans for a state-of-the-art facility and a nuclear training center, according to BBC News's related coverage.