Rolls-Royce warns of higher costs after engine trouble

The company makes engines for jets

The company makes engines for jets

A quarter of Boeing 787 Dreamliner fleet will be further disrupted by the additional engine inspections announced by Rolls Royce to those previously planned.

That will lead to more disruption for its customers, with 380 of the engines in question now in service with airlines, with the firm adding that the new approach will not affect Trent 1000 Package B engines and Trent 1000-TEN engines.

This issue does not affect current production 787s, the Trent 1000 Package B, Trent 1000 TEN or GEnx-1B engines.

While the compressor technical issue was known at the time of the company's 2017 Full Year results on 7 March 2018, the requirement for more regular inspections will lead to higher than previously guided cash costs being incurred during 2018.

Rolls-Royce chief executive Warren East said "We sincerely regret the disruption this will cause to our customers..."

An existing EASA Airworthiness Directive for the Package C engine requires inspections of an IPC blade at certain flight cycles.

Citigroup reiterated its "buy" rating on the British engine maker this week, valuing the shares at 1,083p, while Liberum Capital continues to see the company as a "hold, ' with a price target of 875p on the stock".


The US Federal Aviation Administration (FAA) plans to reduce the amount of time the affected planes can fly on a single engine after a failure of the other.

East said Rolls was working with Boeing and airlines to minimise the disruption. If a durability issue is found, the blade will be replaced.

"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.

This type of check is usually required after reaching making 2000 one-way flights, however Roll-Royce are requiring them to now be checked after 300 flights.

Air New Zealand is one of the airlines affected by the problem, with nine of the Package C engines, said it expected there would be some impact on its global schedule as a result of the additional checks.

British Airways, Japan's ANA, Air New Zealand and Thai Airways, which also use Trent 1000 engines, were not available for immediate comment.

Nevertheless, Rolls confirmed its free-cash-flow guidance for the year at around £450 million.

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