Air New Zealand cancels flights after “events” involving Rolls-Royce engines

Engines on its Boeing 787-9 jets would now require early maintenance, Air New Zealand said in a statement. Above, a Boeing 787 aircraft takes off from Auckland Airport. (Reuters)
Updated 07 December 2017
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Air New Zealand cancels flights after “events” involving Rolls-Royce engines

WELLINGTON: Air New Zealand said on Thursday “two recent events” involving Rolls-Royce Holdings Trent 1000 engines had prompted it to cancel and delay some international flights over the coming weeks, making it the latest airline to experience problems.
Engines on its Boeing 787-9 jets would now require early maintenance, it said.
Rolls-Royce told investors in August that 400 to 500 Trent 1000 engines were affected by issues with components wearing out earlier than expected, according to a conference call transcript.
Air New Zealand did not disclose the nature of the two events, but the New Zealand Transport Accident Investigation Commission said it was investigating two events involving “engine abnormalities” on Air New Zealand aircraft this week.
The Aviation Herald reported on Tuesday that an Auckland-Tokyo flight had returned to its base after take-off due to an engine issue, while plane tracking website FlightRadar24 said a flight to Buenos Aires had returned to Auckland on Wednesday.
Japan’s ANA Holdings and Britain’s Virgin Atlantic have also reported issues with the engines over the last 18 months.
Air New Zealand said Rolls-Royce did not have spare engines available while the maintenance work was being undertaken, meaning it would be focused on finding replacement aircraft capacity.
Rolls-Royce said it was working with Air New Zealand to minimize disruption and restore full flight operations as soon as possible.
“It’s not uncommon for long-term engine programs to experience technical issues during their life and we manage them through proactive maintenance,” a Rolls-Royce spokeswoman said.
Air New Zealand said it did not anticipate any change to current earnings guidance at this stage.


India cuts sales tax across sectors to ease pain of traders and consumers

Updated 21 July 2018
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India cuts sales tax across sectors to ease pain of traders and consumers

MUMBAI: India slashed the sales tax rate on over 50 products on Saturday in a move aimed at appealing to traders and the middle classes as Prime Minister Narendra Modi’s government eyes next year’s elections.
Modi is seeking a second term in 2019 amid voter frustration over the abrupt implementation of a nationwide goods and services tax (GST) a year ago that has hit businesses and general public hard.
The GST council, headed by interim finance minister Piyush Goyal, agreed to lower the indirect tax slab on products such as paints, leather goods, bamboo flooring, stoves, televisions and washing machines from the highest rate of 28 percent to mostly 18 percent.
“The exercise was to ensure simplification and rationalization of GST and extend relief to the common man,” Goyal told a news conference in New Delhi on Saturday evening.
The tax rate on ethanol blended with petrol, footwear costing up to 1,000 rupees and fertilizer grade phosphoric acid has been cut to from 12 to 5 percent, Goyal said.
The council cut taxes on sanitary pads and fortified baby milk to zero, Goyal said.
In a boost to mobile phone manufacturing and electric vehicles, the tax rate on lithium ion batteries was cut from 28 percent to 18 percent.
“The decision taken today will increase compliance and the revenue impact on total tax collections will be marginal,” said Goyal.
The revised tax rates will be applicable from July 27.
Revenue collections from GST are a crucial pillar of government’s plan to cut its fiscal deficit in the current year. India’s GST collection for the fiscal 2017/18 was 98 percent of the budgeted target.
“The broad level reductions in rates could lead to lower tax collections,” said M S Mani, partner at consulting firm Deloitte India.
However, the tax cut will lead to higher sales which could offset revenue losses, Mani added.
($1 = 68.7300 Indian rupees)