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Rolls-Royce hit by Airbus delays | Rolls-Royce hit by Airbus delays |
(40 minutes later) | |
Rolls-Royce has confirmed it will suspend production of one of its top engines, following delays to the Airbus A380 super-jumbo announced this week. | Rolls-Royce has confirmed it will suspend production of one of its top engines, following delays to the Airbus A380 super-jumbo announced this week. |
Airbus's flagship A380 planes, now two years late, use Rolls-Royce Trent 900 engines that are built in Derby. | Airbus's flagship A380 planes, now two years late, use Rolls-Royce Trent 900 engines that are built in Derby. |
Rolls-Royce has suspended production for 12 months, saying the "exact implications are being assessed". | Rolls-Royce has suspended production for 12 months, saying the "exact implications are being assessed". |
The company said that it was too early to say what impact the decision to cut output would have on its employees. | The company said that it was too early to say what impact the decision to cut output would have on its employees. |
"We are waiting for more details about requirements from Airbus," Rolls-Royce said. | |
"Once we are clear on that and any potential impact on future workload, we will consult with the unions," it added. | |
The firm said it would adjust its programme "accordingly". | |
Rolls-Royce said the Derby plant - which employs 11,000 workers - would still be producing engines for other companies including Boeing and Bombardier. | |
Assessing positions | Assessing positions |
Rolls-Royce was keen to stress that the production of civil engines accounted for only about 20% of the company's turnover. | |
And while the Trent 900 engine was seen as a key strategic product going forward, it currently accounts for only a fraction of the firm's total sales. | |
Rolls-Royce is also building engines for Boeing's Dreamliner passenger jet that is scheduled for delivery in 2008. | Rolls-Royce is also building engines for Boeing's Dreamliner passenger jet that is scheduled for delivery in 2008. |
After initially announcing problems in June, Airbus revealed this week that deliveries of its flagship A380 would face further delays. | After initially announcing problems in June, Airbus revealed this week that deliveries of its flagship A380 would face further delays. |
The first orders of the A380 planes are not expected to arrive until October, 2007. | The first orders of the A380 planes are not expected to arrive until October, 2007. |
The decision by Rolls-Royce to suspend production for a year comes after leading commercial airlines said that they were assessing their positions and orders following the confirmation of further delays to the Airbus A380. | The decision by Rolls-Royce to suspend production for a year comes after leading commercial airlines said that they were assessing their positions and orders following the confirmation of further delays to the Airbus A380. |
Emirates, Virgin Atlantic, Singapore Airlines and Qantas - all due to buy the super-jumbo - are among those affected by the delay. | Emirates, Virgin Atlantic, Singapore Airlines and Qantas - all due to buy the super-jumbo - are among those affected by the delay. |
The GE-P&W Engine Alliance is also making an engine for the A380, named the GP7200. |