Proactive Investors - Rolls-Royce (LON:RR) might be set for a major order boost after reports that Airbus is close to tying up the sale of 100 A330neo widebody jet aircraft to China.
The Derby company is a key supplier of the engines used on A330neos with China carriers already major users of Rolls-Royce products across their ranges.
A deal has yet to be concluded but Bloomberg reported that a recent meeting between French President Emmanuel Macron and China’s Premier Xi Jinping had moved things forward.
Boeing’s production issues have also seen airlines look for alternatives, while the trade tensions between China and the US have also led to carriers in the country to look elsewhere.
China has halted imports from Boeing (NYSE:BA) again, just months after they had restarted following a five-year hiatus, while Airbus has two factories in the country.
Airbus currently has 165 unfilled orders for the A330neo, launched in 2018, and while the plane has struggled against larger options, growing order backlogs for the A350 and Boeing’s rival 787 Dreamliner would make it a quick-fix option.
A resurgence in transatlantic travel since the pandemic ended has seen demand for new widebody soar, with the new planes able to carry many more passengers as well as being substantially more fuel-efficient.
According to Bloomberg, Boeing still has orders for over a dozen widebody jets from Chinese airlines.
Shares in Rolls dipped 1.8% to 452p, having recently hit a 20-year high.