European Aircraft Industry: Airbus poised to revamp A330 with Rolls-Royce

A330 and Rolls-Royce

Airbus is set to upgrade its A330 with engines provided exclusively by Rolls-Royce, setting the stage for a bitter new phase in a battle for wide-body jet orders with Boeing's 787 Dreamliner, people familiar with the matter said.

The move accelerates a growing interdependence between the European firms on large jets, with General Electric GE.N - the main alternative A330 engine supplier - no longer in the running for the $2 billion "A330neo" revamp, they said on Thursday.

Shares in Airbus and Rolls-Royce both rose as much as 1.8 percent against a flat market in early Friday trading.
The people, asking not to be named, said the provisional selection of Rolls as sole supplier for the revamped A330neo, offering up to 14-15 percent in fuel savings with the help of new wingtips, remains subject to Airbus Group board approval.

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