Rolls-Royce Spurns Contract for New Airbus Engines, Times Says

Rolls-Royce Group Plc said it won’t offer an improved engine for Airbus SAS’s top-selling A320 short- to medium-range plane, thus turning its back on billions of dollars of potential sales, the London-based Times reported.

Airbus said yesterday that it will offer airlines the A320 with more fuel-efficient engines supplied either by United Technologies Corp.’s Pratt & Whitney unit or by CFM International, a joint venture between General Electric Co. and Snecma SA.

Rolls-Royce, which supplies the existing engine for the A320 in partnership with Pratt & Whitney, said it’s “unable to construct an acceptable business case” for upgrading it and “elected not to participate in the A320neo,” the Times said.

To contact the reporter on this story: Alan Purkiss in London on apurkiss@bloomberg.net.

To contact the editor responsible for this story: Colin Keatinge in London at ckeatinge@bloomberg.net.

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