Global Biz

Qantas grounds A380s for 72 hours

(Agencies)
Updated: 2010-11-08 18:02

SYDNEY - Australia's Qantas Airways has grounded its A380 fleet for at least another three days as it investigates oil leaks as a possible cause of the explosion which tore apart one of the superjumbo's engines last week.

Two Qantas Airbus A380 jumbo jets sit idle on the tarmac in front of the Qantas hangars at Los Angeles International Airport in this Nov 5, 2010 file photo. Australia's Qantas Airways kept its A380 fleet grounded on Nov 8, 2010, after discovering problems on three more of the superjumbo's engines, sending its shares down as much as 4 percent. [Photo/Agencies]

Qantas shares fell as its reputation as one of the world's safest airlines came under the spotlight and investors started counting the financial cost of grounding aircraft and compensating passengers.

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The incident has rattled the global aviation industry which is recovering from heavy losses during the global economic downturn and has been damaging for Rolls-Royce which is developing new engines for the next generation of commercial jets.

Qantas said its six Airbus A380 aircraft would be grounded for at least another 72 hours after an investigation found oil leaks on three Rolls-Royce engines which have been removed from the planes.

Oil leaks in the engines' turbine area were now the focus of the investigation into last Thursday's incident where an engine broke apart above Indonesia's Batam Island, forcing the world's largest passenger plane to make an emergency landing in Singapore.

"We are working with Rolls-Royce to ensure we have an appropriate fix to this issue. Our team, Airbus and Rolls-Royce are working around the clock to ensure that. We are not looking at any other alternatives," Chief Executive Alan Joyce told reporters.

Singapore Airlines said on Monday it had completed engine inspections all its A380s and did not find any issues of concern. Lufthansa has also been conducting additional tests of its A380 fleet.

Analysts said if Qantas's six A380 planes were grounded beyond a week, it could affect the company's profit forecast for this year.

"If they're grounded past two weeks, you'd be a bit concerned," said Matt Crowe, an analyst at Commonwealth Bank, adding there was unlikely to be a long-term impact on passenger demand due to the incident.