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- British engine manufacturer Rolls Royce announced a collaboration with Nordic regional airline Wideroe and aeronautics company Tecnam to build an all-electric aircraft set for commercial launch in 2026.
- The company’s share prices rose by over 3 per cent in early trading 17 March.
- Last week, the company had reported an almost to £4 billion underlying net loss in FY 2020 due to the pandemic’s impact.
British aero engine manufacturer Rolls Royce (LON: RR) on 16 March announced a partnership with Nordic regional airline Wideroe to develop an electric passenger aircraft to be ready for commercial service in 2026.
The move expands on an existing joint research programme between the two companies set up in 2019, aimed at developing electric aircraft concepts as Norway aims to have an electric aircraft by 2030. Rolls Royce also has an existing partnership with Italian aeronautics company Tecnam to help develop the electric P-Volt aircraft. The P-Volt model is expected to be beneficial for Norway’s region and topography as it primarily has short landing and takeoff facilities.
The FTSE 100-listed company will provide the propulsion and power system expertise on the project, while Tecnam will supply manufacturing, design, and certification aspects of the aircraft.
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The company’s (LON: RR) shares were trading at GBX 127.00, up by 3.38 per cent as of 17 March at 8:08 AM GMT+1 following the news, while the FTSE 100 index, which it is a part of, stood at 6,799.74, down by 0.06 per cent.
Rolls Royce reported its FY 2020 results last week. The company’s revenues fell by 28.8 per cent to £11.82 billion in FY 2020 on a year-on-year basis, while its loss before tax in FY 2020 stood at £2.91 billion from a loss of £891 million in FY 2019.
Moreover, its underlying net loss fell to £3.997 billion in FY 2020 from an underlying net profit of £306 the year before. The company’s weaker results were due to the severe impact of the pandemic.
The group though has targeted its free cash flow to turn positive in H2 2021 and reach up to £750m by 2022, depending upon the airline industry’s flying hours recovery and its restructuring programme.