S& P 500 hits all time highs U.S.-Japan trade deal optimism
Investing.com -- Rolls-Royce Holdings Plc (LON:RR) is holding discussions with multiple potential partners to develop engines for the next generation of narrowbody aircraft, signaling the UK manufacturer’s intention to re-enter a key segment of commercial aviation.
Chief Executive Officer Tufan Erginbilgic confirmed on Tuesday that the company is engaged in talks about partnerships involving its Ultrafan turbine technology. He also mentioned that Rolls-Royce (OTC:RYCEY) is in contact with aircraft manufacturers Airbus SE (OTC:EADSY) and Boeing Co (NYSE:BA).
This move represents the clearest indication yet that Rolls-Royce plans to return to the narrowbody market, a segment it left more than a decade ago to concentrate on engines for larger, long-distance aircraft. Since that decision, the narrowbody market has expanded at a considerably faster pace and is projected to maintain its dominant position in commercial aviation.
"It’s even more true right now" that the company wants to return to the narrowbody sector, Erginbilgic stated during a roundtable at the Paris Air Show. "If partnership happens, I think I will look to get best of both worlds."
Rolls-Royce plans to invest an additional $4.1 billion on its Ultrafan technology, which the company has promoted for its fuel-efficient qualities. According to Erginbilgic, the demonstrator for this technology will be completed in two years.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.