British manufacturer Rolls-Royce, which makes and maintains engines for the Airbus A350, has come under scrutiny after an engine failure on a Cathay Pacific Airways flight arriving from Hong Kong on Monday.
Investors are trying to gauge whether the incident could have a major impact on Rolls-Royce, as airlines operating the twin-aisle A350, which is mostly used for long-haul flights and can seat up to 410 passengers, have begun inspecting fleets.
What went wrong with the flight?
according to a Reuters The problem appeared just minutes after takeoff on Flight CX383 from Hong Kong to Zurich on Monday, according to flight tracking service Flightradar24. The five-year-old A350-1000 plane made two large circles and spilled fuel over the sea before returning to Hong Kong, where it landed safely about 75 minutes after its departure. Cathay Pacific said it identified the failure of an engine component after the plane returned to Hong Kong.
Cathay Pacific did not say which engine component failed, but the airline said it was “the first of its kind to experience such a failure on any A350 aircraft worldwide.” A person familiar with the matter told Reuters the incident was related to a problem with a fuel nozzle inside the XWB-97 engine, a Rolls-Royce model used on the A350-1000. Now 15 jets need the replacement part. The airline has already had to cancel 34 return flights.
What consequences could this have for Rolls-Royce?
according to The GuardianThe main question for Rolls-Royce is how widespread is the problem? The company, which makes engines in Derby, makes most of its money from fees related to engine flight hours, so the grounding could be costly.
Rolls-Royce chief executive Tufan Erginbilgic has overseen a stunning rise in the company’s market value since taking over in early 2023 – rising nearly fivefold to £39 billion. As well as cutting management jobs, he has achieved this growth by charging airline customers more. However, these customers may balk at the rising charges if their engines are out of service for long periods of time. The company highlighted Cathay’s statements that it has secured spare parts and repairs can be completed quickly, without having to completely remove the engine.
