Qantas announces profits and Rolls-Royce settlement

Jun 22 2011

Australian carrier Qantas has agreed on a settlement with engine-maker Rolls-Royce over a mid-air blast incident and the grounding of the Qantas fleet of superjumbos.

Rolls-Royce will pay 95m Australian dollars ($100m; £62m), said Qantas.

The compensation helped boost Qantas' pre-tax profit for the year ending 30 June 2011 to between A$500-550m.

The airline has faced a string of natural disasters that have disrupted flights this year.

The settlement is in connection with a Qantas A380 plane that had to make an emergency landing after one of its engines exploded shortly after take off from Singapore on 4 November last year.

The engine was a Rolls-Royce manufactured Trent-900.

Qantas initially grounded all six of its Airbus superjumbos after the blast.

Qantas chief executive Alan Joyce said the settlement marked the end of legal proceedings the airline brought against Rolls-Royce in December.

"Qantas looks forward to a continued strong relationship with Rolls-Royce on the basis of the settlement announced today," the airline said in a statement.

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Reproduced under licence from BBC News © 2011 BBC

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