Published: Sat, April 14, 2018
Money | By Armando Alvarado

Expanded Trent 1000 inspections set to disrupt 787 operations

Expanded Trent 1000 inspections set to disrupt 787 operations

The manufacturer said the increased inspections were driven by "our further understanding of the durability of the Trent 1000 Package C compressor".

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.

Rolls-Royce recently highlighted the Trent 1000 durability issue, and the costs associated with addressing it, in a financial results disclosure.

Air New Zealand is making changes to some global flights after being forced to carry out early maintenance checks on its engines.

This is a known issue and we will continue to work with Rolls-Royce, our customers and the regulators to fully resolve it. Boeing is deploying support teams to mitigate service disruption.

This effectively curtails operations across oceans or remote areas. Goldman Sachs restated a conviction-buy rating and set a GBX 1,261 ($17.82) price objective on shares of Rolls-Royce in a report on Monday, February 12th. There are 380 Package C engines now in service it said.

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

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Higher market valuations drove an increase in total client assets, up 4 percent from a year ago to $1.9 trillion. The company has a debt-to-equity ratio of 1.23, a quick ratio of 0.88 and a current ratio of 0.90.

The airline said the directive by Rolls-Royce and European safety agency EASA reduced the check frequency from 2000 take-off and landing cycles to 300.

The required maintenance of some Trent 1000s has led to a shortage of the engine type while the affected parts are replaced and returned to service.

"We sincerely regret the disruption this will cause to our customers and our team of technical experts and service engineers is working around the clock to ensure we return them to full service as soon as possible".

"The requirement for more regular inspections will lead to higher than previously guided cash costs being incurred during 2018", Rolls said in the release.

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. Rolls-Royce advises 380 engines globally are impacted by the directive, including nine in the Air New Zealand 787 fleet.

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

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