Singapore Airlines grounds two 787-10s citing Rolls-Royce engine problem

Above, the first 787-10 Dreamliner built for Singapore Airlines at its final assembly facility in North Charleston, South Carolina. (Boeing)
Updated 02 April 2019
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Singapore Airlines grounds two 787-10s citing Rolls-Royce engine problem

  • The jets have been removed from service pending engine replacement
  • The Trent 1000 TEN is the latest version of an engine that has had a problematic entry into service

SINGAPORE: Singapore Airlines said on Tuesday it had grounded two Boeing Co. 787-10 jets fitted with Rolls-Royce Trent 1000 TEN engines after checks of its fleet found premature blade deterioration.
The jets have been removed from service pending engine replacement, the airline said in a statement.
The Trent 1000 TEN is the latest version of an engine that has had a problematic entry into service. As of late February, Rolls-Royce said 35 787s were grounded globally due to engine blades corroding or cracking prematurely. The manufacturer said it was aiming to reduce the number to 10 by the end of the year.
In February, the company raised a Trent 1000 accounting charge to $1.03 billion (£790 million) from £554 million at the half year, contributing to a full-year operating loss of £1.16 billion. It also allocated another £100 million in cash to the problem.
Rolls-Royce said on Tuesday that since the entry into service of the Trent 1000 TEN, it had communicated to operators that the high-pressure turbine blades in the engine would have a limited life.
“Working with operators, we have been sampling a small population of the Trent 1000 TEN fleet that has flown in more arduous conditions,” the manufacturer said in a statement. “This work has shown that a small number of these engines need to have their blades replaced earlier than scheduled.”
Rolls-Royce said its engineers were already developing and testing an enhanced version of the turbine blade.
“We will now work closely with any impacted customers to deliver an accelerated program to implement the enhanced blade and to ensure that we can deliver on our Trent 1000 TEN future commitments,” the company said. “We regret any disruption this causes to airline operations.”


Lufthansa profit warning spooks European airline sector

Updated 17 June 2019
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Lufthansa profit warning spooks European airline sector

  • Ryanair Chief Executive Michael O’Leary last month warned of the impact of what he called ‘attritional fare wars’

FRANKFURT: Germany’s Lufthansa sent shockwaves through the European airline sector on Monday as it cut its full-year profit forecast, with lower prices and higher fuel costs compounding the effect of losses at its budget subsidiary Eurowings.
The warning follows gloomy comments last month from Irish budget airline Ryanair, which vies with Lufthansa for top spot in Europe in terms of passengers carried. Air France-KLM also reported a widening quarterly loss last month.
In a statement issued late on Sunday, Lufthansa forecast annual EBIT of between €2 billion and €2.4 billion, down from the previously targeted €2.4 billion to €3 billion.
“Yields in the European short-haul market, in particular in the group’s home markets, Germany and Austria, are affected by sustained overcapacities caused by carriers willing to accept significant losses to expand their market share,” it said.
European airlines are locked in a battle for supremacy, with a surfeit of seats holding down revenues and higher fuel costs adding to the pressure. A number of smaller airlines have collapsed over the past two years.
Lufthansa cited falling revenue from its Eurowings budget business as a key reason for the profit warning.
“The group expects the European market to remain challenging at least for the remainder of 2019,” it said.
It also pointed to high jet fuel costs, which it said could exceed last year’s figure by €550 million, despite a recent fall in crude oil prices.
Ryanair Chief Executive Michael O’Leary last month warned of the impact of what he called “attritional fare wars” and said four or five European airlines were likely to emerge as the winners in the sector.
“No signs that anyone is prepared to reduce capacity, therefore we would anticipate the wave of consolidation in European short haul is not over,” said analyst Neil Wilson, analyst at London-based broker market.com.
Earlier this month global airlines slashed a widely watched industry profit forecast by 21 percent as an expanding trade war and higher oil prices compound worries about an overdue industry slowdown.
Lufthansa’s problems are centered on its European business, with a more positive outlook for its long-haul operations, especially on transatlantic and Asian routes.
Eurowings management is due to implement turnaround measures to be presented shortly, Lufthansa said, adding that efforts to reduce costs had so far been slower than expected.
Lufthansa’s adjusted margin for earnings before interest and tax (EBIT) was forecast between 5.5 percent and 6.5 percent, down from 6.5 percent to 8 percent previously, it said in a statement.
Lufthansa also said it would make a €340 million provision for in its first-half accounts, relating to a tax matter in Germany originating in the years between 2001 and 2005.