Rolls-Royce Shares Continue Slide on Airbus Concern
by
Nov 8th 2010 8:24AM
Updated Nov 8th 2010 8:28AM
Rolls-Royce shares dropped further on Monday as investors fretted about the impact of problems with Rolls-Royce engines on Airbus A380s.
Last week, a Rolls-Royce engine exploded during a Qantas Airways (QUBSF) flight from Singapore to Sydney, forcing an emergency landing in Singapore. Today, Qantas said it found oil leaks in the engines of some of its grounded A380s.
Rolls-Royce shares dropped 1.4% by mid-morning UK time, BBC News said. The shares have declined by about 10% since the incident, wiping more than 1.5 billion pounds ($2.4 billion) off the company's market value.
If the investigation into the Qantas incident finds that the Rolls-Royce engines are not fit for purpose, Rolls might have offer a refund for the engines sold to its Airbus A380 customers, BBC News said.
Last week, a Rolls-Royce engine exploded during a Qantas Airways (QUBSF) flight from Singapore to Sydney, forcing an emergency landing in Singapore. Today, Qantas said it found oil leaks in the engines of some of its grounded A380s.
If the investigation into the Qantas incident finds that the Rolls-Royce engines are not fit for purpose, Rolls might have offer a refund for the engines sold to its Airbus A380 customers, BBC News said.
