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Qantas Starts Compensation Talks with Rolls-Royce

7 years ago1.3K views

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Qantas is in discussions with Rolls Royce over compensation for its A380 engine problems. The airline is hoping to come to a commercial agreement with Rolls-Royce but have filed a legal claim if negotiations fail.

Qantas says it's hoping to come to an agreement with engine maker Rolls-Royce for losses the airline has incurred from the grounding of its A380 fleet and other lost revenue.

Spokeswoman Olivia Wirth says discussions with Rolls-Royce over compensation have started, but Qantas has filed a legal claim should talks collapse.

[Olivia Wirth, Qantas Spokesperson]:
"Qantas indicated yesterday that we have commenced discussions with Rolls-Royce as the manufacturer of the Trent 900 engine and we'll continue to have those discussions and we remain hopeful that we will be able to resolve these through commercial negotiations. However, we have indicated that we have got an injunction from the federal court which will allow us to take this action in Australia if required."

Qantas is alleging Rolls Royce made misleading claims about the performance of its Rolls Royce Trent 900 engines, one of which broke apart mid-flight on a Sydney bound flight last month.

[Olivia Wirth, Qantas Spokesperson]:
"Obviously we have a long standing partnership with Rolls-Royce. They are the engine providers for the A380 and other fleet within the Qantas fleet, so we do remain hopeful that this will be able to be settled in a commercial arrangement. However, we have suffered as a result of this and we want to ensure that we can recover costs."

Qantas's comments came as the Australian Transport Safety Bureau concluded the incident arose because of a design fault.

ATSB Chief Commissioner Martin Dolan says the plane was so badly damaged that the five pilots may have saved the day.

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