AERO-engines group Rolls-Royce has announced its second deal of the New Year, securing a £600m contract to repair and overhaul the engines powering British Airways' Airbus Industrie A320 fleet.
On Tuesday, the group said it had sold the bulk of its Vickers Turbine Components business to the private equity arm of Royal Bank of Scotland in a £74m deal.
Yesterday's 20-year agreement is with International Aero Engines (IAE), which makes the V2500 engines.
It will see Rolls-Royce, which is the senior shareholder in IAE, rework the engines at its repair and overhaul facility at East Kilbride.
IAE won the contract for 59 engines, with an option for another 129, from British Airways in 1998.
Over the past five years, Rolls-Royce has doubled its share of repair and overhaul on its own engines to more than 50 per cent.
In the past two years, it has won more than 200 repair and overhaul contracts in the civil aerospace, defence and energy sectors, the revenues from which account for 40 per cent of turnover.
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