Rolls Royce Group has received an order from Jetstar Airways, a subsidiary of Australia's Qantas Airways, for V2500 engines to power up 90 new Airbus aircrafts, in a deal worth up to $1.2 billion (738 million pounds).

Rolls-Royce told sources, that the contract includes a long-term engine service agreement for the Airbus A320 planes, as well as engines installed on 40 aircrafts, already operated by the three Jetstar Group airline brand businesses.

Jetstar has also signed a US $2 billion long-term, aftermarket services agreement with IAE for the new engines and those already installed on 40 aircrafts, which Jetstar uses on its fleet in Australia and New Zealand or through its Singapore-based affiliate Jetstar Asia.

In a joint statement, Jetstar and IAE said, "The engine purchase agreement for 50 A320 family planes, with options and purchase rights on up to 40 more aircrafts, is worth around US$1.5 billion, if fully exercised".

On Wednesday, shares in Rolls-Royce closed at 473.40 pence, valuing the group at around 8.7 billion pounds.