Air New Zealand 'working closely' with Rolls-Royce on engine issue

Air New Zealand 'working closely' with Rolls-Royce on engine issue

Air New Zealand 'working closely' with Rolls-Royce on engine issue

Shares in Rolls-Royce Holdings (LON:RR) have fallen into the red in today's session as the group warned that it needs to increase the number of inspections of its Trent 1000 engines, with the move resulting in higher costs.

Rolls-Royce has been plagued by issues with the blades in the Trent 1000 engine model, which is used in Boeing 787s, and some Trent 900 engines, amid reports of early corrosion or wear to parts.

The engine manufacturer has increased its maintenance, fix and overhaul capacity by 300 percent over the past two years and has mobilized support teams to cope with Trent 1000 problems.

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

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Bloomberg reports the United States Federal Aviation Administration is about to order that aircraft fitted with Package C engines have the flight time over water and remote areas slashed.

Extended-range Twin-engine Operational Performance Standards, a rule which permits twin engine aircraft to fly routes which, at some point, are more than 60 minutes flying time away from the nearest airport if they have to divert.

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

Not all Dreamliners are powered by Rolls-Royce engines and those using General Electric GEnx engines are also unaffected.

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The need to inspect and fix Trent 1000 engines has led to an industry-wide shortage.

It says the new regime follows further insight into the durability issue affecting the compressors, and admits that the inspections will "unfortunately lead to additional disruption" for its 787 customers.

"We have an ongoing dialogue with both Boeing and Rolls-Royce and we have been told this problem has their full attention".

It said the check was already required prior to the engine reaching a flying threshold of 2000 cycles or one way journeys but the directive reduces that timeframe to 300 cycles.

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A Virgin spokeswoman said it had been aware of the increased inspections announced on Friday and that the cover it had in place would be sufficient.

Scoot, a budget carrier owned by Singapore Airlines, said it expected some impact on operations.

In March, Rolls said the cash hit from the problem should peak at £340mn in 2018 before falling in 2019.

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