My Account Menu

CAPA Login

Register to trial CAPA Membership!

Rolls-Royce shares bounce back – Suppliers Share Wrap


After a rough couple of days related to the Qantas A380 incident and the failure of a Trent 900 engine, Rolls-Royce’s share price recovered 2.4% yesterday. Qantas intends to keep its fleet of Rolls-Royce powered A380s grounded until mid-week, but Rolls-Royce has confirmed it has made progress on discovering the cause of the engine failure. The engine manufacturer also issued a statement that the recent failure of a Trent 1000, due to power the B787, was unrelated.

Rolls-Royce is also facing a lawsuit from Pratt & Whitney, with the United Technologies Corp subsidiary launching patent infringement actions in the UK and US. This is the latest salvo in a battle between the two companies that has gone on for most of this decade. In May this year, Rolls-Royce filed a complaint against Pratt & Whitney, claiming its fan blade designs for several large commercial aircraft engines infringed its own patents.

Pratt & Whitney has now filed a counter-suit against Rolls-Royce in the High Court in London and the International Trade Commission in Washington, claiming that fan blade designs for Rolls-Royce’s Trent 900 and Trent 1000 engines infringe on proprietary technology. If Pratt & Whitney’s suit is successful it could reportedly halt Rolls-Royce from shipping engines for the B787, providing another headache for Boeing on the already off-kilter programme.

Separately, the UK-based company has announced several contract wins over the past week. A 03-Nov-2010, USD200 million order from Tunisair for Trent 700 engines to power three A330s was followed yesterday by a USD350 million order for extended TotalCare long-term services for 12 A330 aircraft.

Selected Original Equipment Manufacturers daily share price movements (% change): 08-Nov-2010

Selected Aviation Suppliers & Leasing daily share price movements (% change): 08-Nov-2010

Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.