This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-11740915
The article has changed 8 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Rolls-Royce says one part caused Qantas A380 blow-out | |
(about 2 hours later) | |
Rolls-Royce has said the problem that led to a mid-air explosion of an aircraft engine was the result of a single faulty component. | |
Rolls said it was correcting the fault, which is specific to its Trent 900 engine and is not an issue on other engines. | |
The statement helped allay investors' concerns, with Rolls-Royce shares rising by more than 2% in early trade. | |
But Rolls added that the problems were set to hit profit growth this year. | |
Key findings | |
Australian airline Qantas grounded its fleet of six A380s after an engine broke apart on a flight to Australia on 4 November. | |
The plane was forced to make an emergency landing in Singapore, and the incident forced all A380 operators to check their planes. | The plane was forced to make an emergency landing in Singapore, and the incident forced all A380 operators to check their planes. |
Rolls-Royce said its investigations had led "to two key conclusions". | |
First, that only the Trent 900 was affected; second, that the engine failure "was confined to a specific component" which led to an oil fire and loss of turbine pressure. | |
Rolls-Royce said that corrective measures would "enable our customers progressively to bring the whole fleet back into service". | Rolls-Royce said that corrective measures would "enable our customers progressively to bring the whole fleet back into service". |
Profits to slow | |
The company's shares fell sharply immediately after the Qantas engine incident, in part because of concerns about a lack of information from Rolls-Royce about the cause. | |
However, following the latest update from the company, its shares were up more than 2% in morning trading. | |
The increase came despite Rolls' chief executive, Sir John Rose, saying that the engine problems would "have an impact on the group's financial performance this year". | |
In July, the company indicated that underlying profit growth for the year would be about 4%-5%. | In July, the company indicated that underlying profit growth for the year would be about 4%-5%. |
But this will now by "slightly lower than previously guided," Rolls-Royce said. | |
A380 delays? | |
Meanwhile, European planemaker Airbus, which makes the A380, said that deliveries of the aircraft may be affected by the engine problems. | |
"I would not rule out some impact on the delivery schedule," chief executive Tom Enders said. "I don't know how severe that would be." | |
But he added that he did not expect the engine incident to damage the reputation of the world's largest aircraft. | |
"It is not an incident that makes us or airlines happy but I am absolutely sure, given the positive reception received so far from airlines and passengers... that the reputation of the aircraft will remain untarnished and increase in years ahead," Mr Enders said. |