Rolls Royce and Airbus sign £4bn deal with Garuda

Rolls Royce and Airbus have signed deals worth £4 billion to supply new airliners to Indonesian operator Garuda.

Eric Schulz, President Civil Aerospace for Rolls-Royce; M. Arif Wibowo, CEO of Garuda Indonesia; UK Prime Minister David Cameron; Tom Williams, Airbus’ Chief Operating Officer; and His Excellency Joko Widodo, President of Indonesia

UKTI: Eric Schulz, President Civil Aerospace for Rolls-Royce; M. Arif Wibowo, CEO of Garuda Indonesia; UK Prime Minister David Cameron; Tom Williams, Airbus’ Chief Operating Officer; and His Excellency Joko Widodo, President of Indonesia.

The deal was signed at Downing Street during Indonesian president Joko Widodo's two day visit to the UK. The government says that the deal amounts to a £1 billion boost to UK manufacturing and will secure jobs at Airbus facilities in Broughton, North Wales, and in Filton near Bristol.The deal will see Garuda upgrading its 14 A330s to the newer A330neo, with Airbus manufacturing the wings at its Broughton plant and Rolls making the engines at its Derby and Singapore facilities.Rolls said that it will also service the engines after the sale, as well as explore skills development opportunities with Garuda.For Rolls, the deal marks a fresh start on its orders with Garuda. Its previous deal to sell engines for Airbus jets to Garuda is still under investigation after a whistleblower alleged that Tommy Suharto, the youngest son of Indonesia's late dictator, was bribed to secure the contract.UK Prime Minister David Cameron said, "This deal underlines the increasing importance of our ties with Indonesia – a fast growing economy and set to become the seventh largest in the world by 2030."We are the fifth biggest investor in Indonesia and our relationship has more untapped potential. We want to encourage more British businesses to seize on these opportunities and we will continue to support them by banging the drum for British skills and expertise."Also on the agenda for President Wikodo's visit were discussions about a potential EU-Indonesia free trade agreement. The government claims that the potential Comprehensive Economic Partnership Agreement could save £50 million to £70 million per year for British exporters.Bilateral trade between the UK and Indonesia increased by just short of four per cent last year, taking it £1.62 billion. The British government says it wants to build on this, particularly in the retail market, which nearly doubled in size between 2008 and 2014.

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