Airbus and Rolls-Royce sign £4bn Indonesian aerospace deal

UK manufacturing is set to receive a nine-figure boost after Southeast Asian airline Garuda Indonesia signed a £4bn upgrade deal with Airbus and Rolls-Royce.

The agreement was signed with the two British manufacturing giants at Downing Street during the first day of Indonesian president Joko Widodo’s two-day visit.

Securing jobs at Airbus sites in Broughton, North Wales, and Filton near Bristol, the deal is estimated to be worth nearly £1bn to the UK’s economy.

Garuda Indonesia’s 14-strong fleet of A330 aircraft will be upgraded to Airbus’ A330neo planes as part of the agreement, while Rolls-Royce will provide new engines.

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.”

He added: “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.”

Yesterday, the PM met with Mr Widodo to discuss strengthening economic ties between Great Britain and Indonesia, as well as a new EU-Indonesia free trade agreement that could help UK exporters save between £50m and £70m per year.

Airbus CEO Tom Williams commented: “We are delighted to welcome Garuda Indonesia as a new customer for the A330neo.

“The A330neo will bring a range of benefits from unbeatable operating economics, including significant reductions in fuel consumption, lower maintenance costs and extended range capability.”

Mr Williams continued: “The aircraft will have Airbus’ all new Airspace cabin which will ensure the A330 continues to be a benchmark for passengers and airlines alike.

The president of civil aerospace at Rolls-Royce, Eric Schulz, said he believes Indonesia boasts “great economic prospects”.

Mr Schultz added: “This year marks the 20th anniversary since we first provided Trent engines to Garuda Indonesia and we are proud to power this latest expansion to their fleet with the very latest member of our Trent engine family.

“In creating this family, we have benefitted from UK investment in innovation across materials, aerodynamics, noise, control systems and manufacturing technologies.”