Rolls-Royce said it detected new issues that will require extra repair-shop visits on a further batch of turbines that power Boeing’s 787 airliner.
Rolls-Royce Holdings’ engine-durability crisis worsened after the company detected new issues that will require extra repair-shop visits on a further batch of turbines that power Boeing’s 787 airliner.
The glitch concerns a pressure compressor on “Package B” Trent 1000 engines for the widebody plane, London-based Rolls said Monday. Shares of the U.K. company, which is expected to announce thousands of job cuts this week as part of a restructuring plan, fell as much as 2.2 percent.
After an agreement with Boeing and safety regulators, some 166 engines that are potentially affected will undergo a one-time inspection to assess the extent of the problem, Rolls said. Package B turbines have been in service since 2012, with evidence of excessive wear detected on a small number of the most-used units, it added.
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About 80 percent of the Package C engine version have undergone initial checks for cracking or signs of wear and tear on turbine blades, a person with knowledge of the issue has said. Just under a third of those engines failed the initial inspections required by regulators for planes that fly more than 2 hours and 20 minutes from the nearest diversionary airport.
The company is due to unveil more sweeping measures devised by turnaround consultants Alvarez & Marsal at a capital markets day Friday. It could cut as many as 5,000 jobs, according to a note from JP Morgan published May 31, which said analysis of restructuring programs at seven comparable businesses over the past decade suggests 10 percent of the payroll may be eliminated.