Rolls-Royce Holdings PLC (LSE:RR.) is seeking to find a way into the narrow-body jets market but is set to sit by and watch another deal being struck between Ryanair Holdings PLC (LSE:RYA) and Boeing.
Ryanair boss Michael O'Leary confirmed the low-fare carrier was in talks with Boeing on Thursday, marking yet another deal Rolls-Royce will miss out on, since it is yet to find a way into the short-haul market.
Rolls-Royce supplies engines for various wide-body jets, including the Boeing 777, 787 and Airbus A330 and A380.
However, it currently offers no engines for narrow-body jets, used by short-haul carriers like Ryanair and easyJet PLC.
It is seeking ways into the narrow-body market, according to JP Morgan, potentially diversifying from engines which only power larger commercial flights.
JP Morgan suggested Rolls had “no easy route” into the narrow-body market in February, though.
Having looked to partner with other manufacturers, analysts at the bank said any near-term deals between Rolls and its rivals were unlikely, given the already established relationships between engine makers, such as General Electric (NYSE:GE) and Safran.
Rolls' is developing its new ‘UltraFan’ engine, which is more efficient and “scalable” for use on smaller commercial aircraft, but is not expected to be available until the 2030s.
Rolls-Royce shares fell 0.75% to 148p on Thursday.