Boeing’s First Order of 2020 Is Bad News for Rolls-Royce

(Bloomberg) --

Boeing Co. has secured its first order of 2020 as it battles with the grounding of the 737 Max, with Japan’s ANA Holdings Inc. confirming it plans to take up to 20 more of the manufacturer’s 787 Dreamliner wide-bodies.

In a blow to Rolls-Royce Holdings Plc, the Japanese carrier opted to go with General Electric Co. engines after previously powering its 787s exclusively with turbines from the U.K. company.

Rolls-Royce’s Trent 1000 engine has been blighted by design glitches, leading to an estimated 2.4 billion pounds ($3.1 billion) in charges through 2023 as jets are idled for fixes, disrupting operations at its airline clients. ANA had to cancel around 1,000 domestic flights in 2018.

“While we are disappointed, as ANA is an important customer, we understand their desire for diversity and a mixed fleet,” Rolls said in an emailed statement. It said it’s providing support to ANA amid the Trent 1000 issues and has made progress in recovery efforts for the carrier’s 787 fleet.

ANA’s top-up order comprises 11 787-10s, one 787-9 and an option for five 787-9s, worth more than $5 billion at list prices, the airline said Tuesday. It also plans to acquire three new 787-9s from Atlantis Aviation Corp.

To contact the reporter on this story: Charlotte Ryan in London at cryan147@bloomberg.net

To contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, Christopher Jasper, Andrew Noël

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