Equities UK

Rolls-Royce share price: Korea’s Air Premia picks Trent 1000 for Dreamliners

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South Korea’s new Air Premia airline has chosen Rolls-Royce Holdings’ (LON:RR) Trent 1000 to power 10 Boeing 787 Dreamliners, the blue-chip engine maker has said. The move marks a boost for the blue-chip company which has been plagued by issues with the Trent 1000 engines.

Rolls-Royce’s share price has surged in London this Friday, having gained 0.93 percent to 888.20p as of 08:31 BST. The shares are outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.08 percent higher at 7,423.83 points.

Rolls-Royce inks deal with Air Premia

Rolls-Royce said in a statement yesterday that its Trent 1000 had been selected by new Korean airline Air Premia to power 10 Boeing 787 Dreamliner aircraft. The airline will operate the latest version of the Trent 1000, the Trent 1000 TEN, and plans to start services in 2020 with long-haul services from 2021. The companies did not disclose the financial terms of the deal.

“This is a great endorsement of our Trent 1000 engine and we warmly welcome Air Premia into our family of engine operators,” Chris Cholerton, Rolls-Royce, President – Civil Aerospace, commented in the statement.

The news comes after the blue-chip engine maker announced earlier this week that it had been working closely with regulatory authorities to establish a plan for inspecting its remaining Trent 1000 TEN fleet, with the engine blades having been found to be corroding or cracking prematurely. Earlier this month, Singapore Airlines grounded Boeing 787 Dreamliners amid issues with the Trent 1000 engines.

Analysts on blue-chip engine maker

Citigroup reaffirmed Rolls-Royce as a ‘buy’ this week, without specifying a price target on the shares. According to MarketBeat, the blue-chip engine maker currently has a consensus ‘hold’ rating and an average valuation of 1,029.91p.

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