Rolls-Royce to incur extra costs for testing its engines for Boeing’s Dreamliner jet
London — Rolls-Royce Holdings said it will incur extra costs and further disrupt services for airline customers as it carries out additional inspections on engines it builds for Boeing’s 787 Dreamliner jet. The checks will be made on a batch of 380 Trent 1000 turbines after testing indicated that more frequent scrutiny is required to cope with an existing durability issue, Rolls-Royce said in a statement Friday, barely a month after the London-based company suggested the problem was under control. The move will affect about a quarter of the 787 fleet, according to Boeing. "The requirement for more regular inspections will lead to higher than previously guided cash costs being incurred during 2018," Rolls-Royce CEO Warren East said in the release. "We are reprioritising various items of discretionary spend to mitigate these incremental cash costs." The company maintained its estimate of £450m for annual free cash flow, but East declined to say on a call how big the additional impact ...
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