Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Rolls-Royce loses Thai Airways as exclusive customer

Published 14/02/2024, 11:08
Updated 14/02/2024, 11:10
© Reuters.  Rolls-Royce loses Thai Airways as exclusive customer

Proactive Investors - British aerospace large-cap Rolls-Royce Holdings PLC (LON:RR.) has been dropped by Thai Airways as the exclusive supplier of widebody engines.

Bloomberg reported that the Bangkok-based airline placed an order for 45 General Electric-powered Boeing (NYSE:BA) aircraft instead.

Thai Airways and Rolls-Royce have priors; last November, the former’s chief executive Chai Eamsiri lambasted Rolls for not offering price concessions on an order of Trent engines.

“You should never play hard to your customer. If you play hard, you may win in the short term but lose for the long term,” Eamsiri said at the time.

In the same month, Rolls copped heat from Emirates boss Tim Clark over the durability of its engines.

His comments came after Emirates placed a $50 billion order for 90 GE-powered Boeing 777X jets, marking another unfortunate snub to Rolls.

Thai Airways’ pivot to Boeing craft comes despite a crisis point for the US engineering group.

Alaska Airlines grounded all its fleet of Boeing 737 MAX 9s in January after a door panel blew off one of its flights.

Reports of a front wheel falling off a Boeing plane at Atlanta airport shortly followed.

Rolls-Royce recently copped a downgrade from Berenberg, though Jefferies this week raised its guidance on the stock from 310p to 390p while maintaining a buy rating.

Shares have remained firm this Wednesday, rising nearly 2% to 312p at the time of writing.

Read more on Proactive Investors UK


Latest comments

You get what you pay for. Considering the current situation with GE and PW I don't think Thai Airways have made the best decision
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.