Rolls-Royce has signed a new engine overhaul agreement with Icelandair, covering the RB211-535s which power the airline's fleet of 21 Boeing 757s.
The five year contract is valued at $100 million and the work will be carried out at the Rolls-Royce Aero Repair and Overhaul (AR&O) facility in Derby, UK.
Jens Bjarnason, Senior Vice President of Technical Services at Icelandair, said: "We have enjoyed a 15-year relationship with the Rolls-Royce Aero Repair and Overhaul business, during which time we've received only the best in terms of service levels. As the original manufacturer, Rolls-Royce can offer us unparalleled knowledge of the engines as well as a mature understanding of our operations."
Miles Cowdry, President - Services for Rolls-Royce, added: "We're delighted that Icelandair has decided to extend its services links with us. A high level of trust has been built between our two companies over the years and this is reflected in the decision to continue this long and successful relationship."
The links between Rolls-Royce and Icelandair set a record in 2000, when one of its 535 engines became the first to achieve more than 40,000 hours on wing.
Last year, Icelandair selected the Rolls-Royce Trent 1000 to power up to seven Boeing 787s it has on order for delivery from 2010.