Qantas in $100 million settlement with Rolls Royce

But the Australian airline’s troubles continue with Chilean ash cloud

Qantas’ pre-tax profits for the year ending June 30 have been enlarged by US$100 million, which is the amount that the engine-maker Rolls Royce has agreed to pay the airline in compensation for the explosion of one of its engines in mid-air last year. The aircraft landed safely, but the incident resulted in the grounding of all six of its A380s. Despite Australia’s recent natural disasters, Qantas is expected to post a profit of around $550 million. The uncontained engine explosion on November 4 occurred in a Trent-900 engine.
However, Qantas’ troubles are continuing, as flights continue to be disrupted by the ash cloud from a volcano in Chile. Around 120,000 passengers were affected in one day alone, on June 21. But flights from southern Australia are beginning to resume today.


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