British engine maker Rolls Royce is set to lose £2.6bn after airline Emirates cancelled a £13bn order for 70 Airbus A350 aircraft, the manufacturer’s biggest-ever cancellation.
The aerospace manufacturer confirmed the cancellation of the order placed in 2007 after Emirates reviewed its fleet requirements.
As a result of the cancellation of delivery which was set for 2019, Rolls Royce’s order book has sunk is set to shrink by £2.6bn, accounting for around 3.5% of total orders.
In a statement, Rolls Royce, which announced its first profit warnings in over a decade in February, said: “While disappointed with this decision, we are confident that the delivery slots which start towards the end of this decade vacated by Emirates will be taken up by other airlines.”
The news saw a reaction in the stock market, with hares in Rolls falling 1.9p%, while Airbus stocks plummeted by 4% at the start of trading today.
John Leahy, chief operating officer, custoomers at Airbus, told The Telegraph: “It’s not the world’s greatest news, but Tim [Clarke, president of Emirates] does change his mind from time to time.”
“The first planes were not due to be delivered to Emirates for another five years, so the early slots we will have no problem filling. We have already had enquiries from other airlines about these slots.”