Rolls-Royce share price: Airbus close to choosing UK group for A330 revamp

on Jun 27, 2014
Updated: Apr 9, 2020
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iNVEZZ.com, Friday, June 27: Airbus (EPA:AIR) is nearing a decision to upgrade its A330 with engines provided by Rolls-Royce Holdings Plc (LON:RR), Reuters has reported.

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Rolls-Royce’s share price has added more than one percent in London this morning.
**A330 upgrade decision**
Reuters yesterday quoted unidentified sources familiar with the matter as reporting that Airbus was very close to a decision to upgrade its A330 fleet with Rolls-Royce-provided engines. The people added that the UK company’s main competitor General Electric (NYSE:GE) was no longer seen as a contender for the $2 billion (£1.2 billion) project, provisionally dubbed ‘A330 neo’.

The sources noted that the go-ahead with Rolls-Royce as sole supplier for the new version of the A330 remained subject to approval by Airbus’ board which is expected to meet ahead of the July 14-20 Farnborough Airshow. It, however, remains unclear whether the Franco-German group would unveil the new project at the aviation event as it might wait for purchasing decisions from customers.

“We will have a comment when we have a decision. There is no decision yet,” a spokesman for Airbus told Reuters. The newswire also quoted Rolls-Royce as saying it was “not aware” of a final A330 decision having been reached, and that any announcement would come from Airbus.

Earlier this month, Dubai’s Emirates cancelled an order for 70 Airbus’ A350 widebody aircraft. ( Rolls-Royce share price: Order book hit as Emirates cancel Airbus order ) The cancellation resulted in a £2.6 billion hit for Rolls-Royce’s order book with the UK company supplying Trent XWB engines for the aircraft.

**Analysts on Rolls-Royce**
The 20 analysts offering 12-month price targets for Rolls-Royce for the Financial Times have a median target of 1,208p, with a high estimate of 1,440p and a low estimate of 890.00p. As of June 23, the consensus forecast amongst 46 polled investment analysts covering the stock advises investors to hold their position in the FTSE 100 engine maker.
The company recently announced that it was planning return to £1 billion to shareholders via a share buyback after it agreed to sell part of its energy division to Siemens (FRA:SIE) for £785 million in cash and a further £200 million for a 25-year licensing agreement. (Rolls-Royce share price: Company vows to return £1bn to shareholders)
**As of 08:13 BST, buy Rolls-Royce shares at 1052.00p.**
**As of 08:13 BST, sell Rolls-Royce shares at 1051.00p.**

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