Rolls-Royce is boosted by BA engine order

ROLLS-ROYCE enjoyed a boost to its shares yesterday after signing a £3.2bn contract with British Airways for its Trent 900 and Trent 1000 engines.

Confirmation of the deal, which was first mooted in 2007, will allow Rolls-Royce to book the orders on its balance sheet.

Rolls-Royce chief executive Sir John Rose said: “We are pleased that British Airways continues to put its trust in our world-class Trent engine technology and service provision.”

Rolls-Royce shares gained more than two per cent following the announcement, and closed up 0.76 per cent at 659p, outperforming a sluggish FTSE 100.

The stock took a battering in November when a Qantas flight was forced into an emergency landing after a Rolls-Royce Trent 900 engine failed.

“Today it takes on perhaps disproportionate significance because having British Airways sign up for Rolls-Royce Trent 900 engines for its A380s after what happened with Qantas is really rather reassuring,” said Sandy Morris, an analyst at RBS.

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