Rolls-Royce suspends work on A380 engines

Aero-engine maker Rolls-Royce said yesterday it had suspended work on the Trent 900 engine for the Airbus A380 superjumbo for about 12 months.

The A380 is now not expected to start deliveries until the last quarter of 2007, two years late, as engineers work to fix problems in wiring the mammoth double-decker plane.

"We are suspending production for about 12 months," a Rolls-Royce spokesman said. "We made the announcement to employees yesterday."

He said the company did not expect immediate layoffs or any change in its financial guidance for the year.

"We are continuing to talk to Airbus about the exact details of their future requirements. Once we have the detailed engine programme requirements from Airbus and are clear on any potential impact on Rolls-Royce, we will consult with employee representatives."

Rolls shares were down 1.1 per cent at 457-1/2 pence versus the FTSE 100 index which was up 0.01 per cent as of 9:57 a.m.

The rival GE-P&W Engine Alliance made up of US companies GE Aviation and Pratt & Whitney, a unit of United Technologies Corp., is offering an engine for the A380 as well which is called the GP7200.

The Trent 900 makes up a small part of Rolls-Royce's annual turnover, which includes production and support for engines for several models of planes from Airbus, Boeing and other manufacturers.

In addition to aircraft engines, Rolls-Royce manufactures ship engines and equipment used in the energy industry.