Cathay Pacific cancels flights after problem with Rolls-Royce engine – business live
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A problem with a Rolls-Royce engine has forced Hong Kong carrier CathayPacific to cancel 24 return flights.
Eight of Cathay’s nine flights from Hong Kong to Singapore have been cancelled today, along with other services across Asia, as the airline races to inspect its fleet of Airbus A350s, powered by Rolls-Royce engines.
Last night, Cathay said “a number of aircraft will be out of service for several days” while checks are carried out as a “precautionary measure”.
The only Cathay flight left from Hong Kong to Singapore today, at 15:15pm local time, uses a Boeing 777-300 jet.
Three flights to Bangkok, three to Tokyo and one to Taipei have also been scrapped.
Cathay acted after a part failed on one of its A350-1000 widebody planes shortly after take-off from Hong Kong, on a route to Zurich, on Monday. The plane dumped its fuel over the sea before returning safely to Hong Kong, where an engine component failure was identified.
Keith Brown, the CathayPacific engineering director, said yesterday:
“Each aircraft is undergoing a rigorous inspection. Upon completion, the aircraft cleared for operation will return to service, while those identified with technical issues will undergo further repair and maintenance work.
Meanwhile, we are liaising with the Hong Kong civil aviation department and the aircraft and engine manufacturers. We sincerely apologise for the inconvenience caused and appreciate our customers’ patience and understanding.”
The problem is suspected to be deformed or degraded fuel lines, Bloomberg reports.
Deformed or degraded fuel lines are suspected to be the reason Cathay Pacific Airways has canceled multiple Airbus SE A350 flights for fleet-wide precautionary checks, according to two people familiar with the matter https://t.co/XpS1ShkNy9
Shares in Rolls-Royce fell by 6.5% on Monday, after news of Cathay’s problems emerged.
Other airlines, though, have not grounded their own A350s; data flight tracking service FlightRadar24 shows other major operators of the A350-1000 and A350-900 planes appear to be flying their aircraft normally on Tuesday, Reuters reports.
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Deutsche Bank reckons Rolls-Royce’s shares are still worth buying, despite the problems at Cathay Pacific.
It told clients this morning that it has a target price of 555p for Rolls’s shares – they fell to 464p last night, but have now risen to 480p this morning.
Deutsche analyst Christophe Menard says:
Cathay Pacific announced that it was inspecting its Airbus A350 fleet as a precautionary measure after discovering an engine issue on a Rolls-Royce Trent XWB-97 engine on 2 September.
While the news raises some concerns, our preliminary analysis is that the financial liability could be contained. Hence, our positive view of the equity story is unchanged.
London’s stock market is open…. and shares in Rolls-Royce are recovering some of yesterday’s losses.
Rolls-Royce has jumped by around 3% in early trading, having lost 6.5% on Monday as traders reacted to the news that Cathay Pacific flight CX383, powered by RR’s XWB-97 engines, had a problem.
Looking ahead to tomorrow (4 September), Cathay Pacific says it expect to cancel “10 additional regional return flights”. Long-haul services should not be affected, though.
For the remaining cancellations up to Saturday (7 September), further details will be provided tomorrow.
We have fresh news from Cathay Pacific.
Cathay says it has inspected its fleet of 48 Airbus A350s, and found 15 aircraft with components that needed to be replaced.
Three of the planes have already been repaired, and they are all expected to resume operations by Saturday.
Rolls-Royce adds that as well as providing support and guidance to Cathay Pacific, it will keep other airlines that operate Trent XWB-97 engines “fully informed of any relevant developments as appropriate”.
Rolls-Royce has confirmed that the Cathay Pacific flight that encountered problems yesterday was powered by one of its Trent XWB-97 engines.
It says:
Rolls-Royce also notes that an investigation has been launched by the relevant authorities in Hong Kong under ICAO Annex 13, which restricts Rolls-Royce from commenting on the investigation.
Rolls adds that it is “committed to working closely” with the airline, aircraft manufacturer and the relevant authorities to support their efforts.
Rolls also notes that if any components need replacing, spare parts have been secured and the replacement can be completed “whilst the engine is on-wing”.
Other airlines who use A350-1000 jets are awaiting more information about the problem.
Reuters reports:
Tokyo-based Japan Airlines (JAL) , which has five A350-1000s that are all less than a year old, said it had asked Rolls-Royce for more information and had not stopped A350 flights in the meantime.
“If the engine manufacturer takes any further action, we will respond accordingly,” a JAL spokesperson said.
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
A problem with a Rolls-Royce engine has forced Hong Kong carrier CathayPacific to cancel 24 return flights.
Eight of Cathay’s nine flights from Hong Kong to Singapore have been cancelled today, along with other services across Asia, as the airline races to inspect its fleet of Airbus A350s, powered by Rolls-Royce engines.
Last night, Cathay said “a number of aircraft will be out of service for several days” while checks are carried out as a “precautionary measure”.
The only Cathay flight left from Hong Kong to Singapore today, at 15:15pm local time, uses a Boeing 777-300 jet.
Three flights to Bangkok, three to Tokyo and one to Taipei have also been scrapped.
Cathay acted after a part failed on one of its A350-1000 widebody planes shortly after take-off from Hong Kong, on a route to Zurich, on Monday. The plane dumped its fuel over the sea before returning safely to Hong Kong, where an engine component failure was identified.
Keith Brown, the CathayPacific engineering director, said yesterday:
“Each aircraft is undergoing a rigorous inspection. Upon completion, the aircraft cleared for operation will return to service, while those identified with technical issues will undergo further repair and maintenance work.
Meanwhile, we are liaising with the Hong Kong civil aviation department and the aircraft and engine manufacturers. We sincerely apologise for the inconvenience caused and appreciate our customers’ patience and understanding.”
The problem is suspected to be deformed or degraded fuel lines, Bloomberg reports.
Deformed or degraded fuel lines are suspected to be the reason Cathay Pacific Airways has canceled multiple Airbus SE A350 flights for fleet-wide precautionary checks, according to two people familiar with the matter https://t.co/XpS1ShkNy9
Shares in Rolls-Royce fell by 6.5% on Monday, after news of Cathay’s problems emerged.
Other airlines, though, have not grounded their own A350s; data flight tracking service FlightRadar24 shows other major operators of the A350-1000 and A350-900 planes appear to be flying their aircraft normally on Tuesday, Reuters reports.
The agenda
8am BST: Switzerland’s Q2 2024 GDP report
9.30am BST: ONS data on mergers and acquisitions involving UK companies
10.30am BST: South Africa’s Q2 2024 GDP report
1pm BST: Brazil’s Q2 2024 GDP report
3pm BST: ISM survey of US manufacturing for August