Rolls-Royce Holdings (LON:RR) is expected to incur further costs on its problematic Trent 1000 engine programme, having discovered issues with the Trent 1000 TEN, the Financial Times has reported. The news marks a blow for the British group after it emerged earlier this month that the company was wrestling with a shortage of parts needed to repair hundreds of faulty engines.
Rolls-Royce’s share price has been steady in London in today’s session, having climbed 0.42 percent to 965.20p as of 10:30 BST. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.12 percent lower at 7,612.80 points.
New Trent 1000 TEN issues
The FT reported yesterday that Rolls-Royce will now have to address issues with the Trent 1000 TEN, which entered service in November. The newspaper noted that the FTSE 100 group had told the 12 airline customers using the Trent 1000 TEN that within a year of entering service the engine will have to be taken off wing and parts replaced.
Industry website FlightGlobal, which first reported the problems, meanwhile notes that the European Aviation Safety Agency is considering whether to order removal of parts which have exceeded 865 cycles since being installed.
Costs unlikely to be material
Nick Cunningham, aerospace analyst at Agency Partners, however, told the FT that the costs of the newest problems were not likely to be material for Rolls-Royce. He also noted that the British engine maker was not the only one facing difficulties with the new generation turbines.
“It seems it is very hard to make the new engines of the last decade meet the simultaneous requirements of emissions, economy and reliability,” he pointed out.