(Il Sole 24 Ore Radiocor) – Milan, 3 September – Rolls Royce bounces back after the slide on the day before caused by the engine failure of a Cathay Pacific plane. The stock of the British group that makes engines for the aeronautical, naval and energy sectors rose 4% to 482.90 pence around 10.20, after losing 6.5% on Monday. Yesterday, Cathay Pacific Airways cancelled dozens of flights and inspected its entire fleet of Airbus A350s after detecting a failure in an engine component during a flight. The company said that three of the 48 planes with Rolls-Royce engines inspected were successfully repaired and that all the jets should return to service by Saturday. Some analysts said Monday’s decline was exaggerated. Among others, Jefferies reiterated its buy advice on Rolls Royce. ‘While much remains to be clarified’ at a technical level, ‘the £2.7bn drop in market capitalisation (yesterday, ed.) assumes costs per aircraft which appear excessive, given that this is likely to be limited to the A350-1000 with low parts counts per engine,’ the analysts wrote in a note.
A Cathay plane had to abort its flight to Zurich on Monday due to a component failure, the first time such a component has failed on an A350, the airline said. According to sources familiar with the matter, the incident was caused by a fuel injector problem in the Rolls-Royce XWB-97 jet engine, the largest jet engine the British airline has produced. The plane in question was delivered in January 2019, according to industry sources. Rolls-Royce, the sole engine supplier for the A350 jet, said it was aware of the incident and confirmed that the flight was powered by Trent XWB-97 engines. “Rolls-Royce is committed to working closely with Cathay, Airbus and the relevant authorities to support their investigation into this incident,” the airline said. Cathay said it had identified a number of components to be replaced, saying spare parts had already been obtained and repair work was underway.
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(RADIOCOR) 03-09-24 10:29:53 (0207) 5 NNNN
