Rolls-Royce says extra plane engine checks will drive up costs

The company makes engines for jets

It says, however, that the need for more regular inspections will result in higher cash costs that those in its previous financial guidance.

Airlines have already been forced to alter schedules or lease other aircraft, but the latest issues could be more far-reaching. Finally, JPMorgan Chase reissued a "neutral" rating and issued a GBX 970 ($13.71) target price on shares of Rolls-Royce in a research report on Friday, January 5th.

About 25 percent of the 787 Dreamliner fleet is powered by this Rolls-Royce engine variant.

The board said it was reprioritising various items of discretionary spend to mitigate the incremental cash costs, and its guidance for 2018 free cash flow remained unchanged for 2018 of around £450m.

The increased inspection frequency is driven by further understanding of the in-service durability issues with the Trent 1000 Package C engine's intermediate pressure compressor, a condition that was first revealed earlier this year.

Boeing said the 787 has safely flown more than 3.2 billion miles since entering commercial service in 2011. The news comes after the company recently warned that the cost for fixing the issues with its Trent 1000 and Trent 900 engines would broadly double from the total cash cost in 2017 of £170 million and reach a peak this year.


"We will be working closely with Boeing and affected airlines to minimise disruption wherever possible".

"It's disappointing and frustrating that our new aircraft don't work the way they are supposed to", spokesman Lasse Sandaker-Nilsen said, adding that it had cancelled a flight from Paris to NY next week as a result.

Virgin Atlantic has up to four 787s grounded at any one time while it sources replacement engines with Rolls and has also leased three Airbus A330-200s to help to cover its flying programme.

On Friday Rolls said it had made a decision to increase the number of inspections after the implications of another problem, this time with the compressor, became clear.

In December the EASA ordered airlines to replace some Trent 1000 engines.

Related:

Comments

Latest news

Netflix (NFLX) Rating Reiterated by Cowen
The Internet television network reported $0.41 EPS for the quarter, meeting analysts' consensus estimates of $0.41. Netflix stock was up 1.9% at $314.99 at last check, pacing for its eighth daily win in nine sessions.

God Of War: Another Stunning Tech Showcase For PlayStation 4
It's a no-brainer because God of War is one of the most anticipated games of the year and you know you've been dying to get it. God of War will be released on Friday April 20, 2018 in both digital and physical formats.

Vaccine suppresses peanut allergies in mice
The immune system's job is to identify threats to the body and fight them off, but it doesn't always pick the right targets. This is why researchers made a decision to find a way to ward off the allergic reactions associated with this food.

PM breaks silence, says justice will be done 'to our daughters'
During this time he said that we have to work together to eliminate this internal evil of our society, we all have to do together. The Jammu police say that the primary intention of the murder was to frighten the Bakarwal community to which the girl belongs.

Blizzard conditions expected for parts of eastern Colorado
Snow will first develop over the mountains late this afternoon into evening, and then across the eastern plains by Friday morning. The chance of precipitation is 60 percent with new rainfall amounts between a tenth and quarter of an inch possible.

Other news