Qantas could sue Rolls-Royce over super-jumbo explosion

2nd Dec 2010 10:26

Rolls-Royce could face legal action from Qantas over the explosion on a A380 airbus that led to the grounding of the Australian airline's fleet of super-jumbos.Discussions with Rolls-Royce are underway "on a range of issues concerning the A380 fleet including financial and operational impacts, as a consequence of the QF32 Trent 900 engine failure on November 4, 2010 and will also consider legal options," Qantas said in a statement.The Aussie airline added it has taken out injunction "which will ensure that the company can pursue legal action against Rolls-Royce in Australia, particularly under the Trade Practices Act, if a commercial settlement is not possible". Two of Qantas' super-jumbos have resumed flying, but the A380s used for the Los Angeles to Sydney and Melbourne routes have stayed grounded while further tests are carried out. Brokers suggest revenues lost may amount to over A$60m, while costs could push a possible claim up to A$100m. The airline could also claim for damages. Rolls-Royce did not comment, though it has already cautioned this year's profits will be affected by the problems with the Trent 900 engine.Meanwhile, the Australian Transport Safety Bureau (ATSB) has ordered detailed checks on all Rolls-Royce engines on Qantas aircraft after it spotted a manufacturing fault.The ATSB said: "This condition could lead to an elevated risk of fatigue crack initiation and growth, oil leakage and potential catastrophic engine failure from a resulting oil fire."