Qantas gets blasted by engine fault
Australia – Qantas Airways may suffer a loss of A$207 million (US$204 million) due to lost revenue and direct repair costs as a result of an engine explosion that grounded its Airbus SAS A380 fleet.
Bank of America Corp.’s Merrill Lynch unit predicted in a report it will cost Qantas A$137 million for lost revenue and A$70 million for the repair of the Rolls-Royce Group Trent 900 engines.
Last week, Qantas sought compensation from Rolls-Royce when a Trent 900 exploded shortly after takeoff, Bloomberg reported.
While the compensation will fully cover the financial loss, analysts at Merrill Lynch believed it will not cover the cost of rebuilding the carrier’s brand.
Qantas said last week talks with Rolls-Royce to reach a settlement are underway.
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