Qantas Settles With Rolls-Royce


In a recent post, we noted that Qantas Airways had filed a preliminary action in the Australian federal court.  The lawsuit arose from the failure of a Rolls-Royce engine on November 4, 2010,  which led to a temporary grounding of Qantas’ entire A380 fleet.

Qantas announced today that it has reached a settlement agreement with Rolls-Royce which includes a discontinuance of the lawsuit.  While the terms of the settlement are confidential, the profit and loss impact of the settlement will reportedly be recognized in Qantas’ financial reports as A$95 million.

Last month, the Australian Transport Safety Bureau (ATSB) released an interim factual report (link) stating that the failure was caused by a manufacturing defect in an oil feed pipe.  The ATSB’s investigation is ongoing and a final report is expected in mid-2012.

(*photo courtesy of Tim Beach)

<< Back to Aviation Law