Member log in

Engine explosion has Qantas, Rolls Royce, investors jittery

Click image for larger view.

As news - and wild speculation - swirled yesterday about Qantas' A380 engine explosion, its share price crashed. And despite the safe landing, investors are still jittery.

Qantas strongly brands itself as a safe airline, and is justifiably proud of never losing an aircraft to a crash. And in the immediate aftermath of the engine explosion, Qantas shares on the ASX (QAN) dived to $A2.82, a 5% discount from their trading price of $A2.97 only hours earlier.

The airline has since grounded its six A380 aircraft, pending further engine checks, and blamed the engine manufacturer, Rolls Royce.

Despite the A380 landing safely at Singapore's Changi airport, and Qantas' firm action in grounding its fleet, the market is still wary with their stock price only recovering slightly, to $A2.87.

Click chart for larger image:

Shares in Rolls Royce (RR) on the London stock exchange, have subsequently also been trading significantly down. Yesterday their stock traded at 654p, while recent trading at 620p has imposed a 5% discount.

More by Matt Nippert

Comments and questions
4

The joke about QANTAS is that now Rolls Royce, Boeing, Airbus etc all look to them when they need some testing done. If a part is capable of falling off, blowing up, or otherwise malfunctioning, QANTAS will make it do so. Perhaps they have never lost a plane, but they have certainly landed a few with quite a considerable amount bodywork missing. lets not forget the passengers who got a free zero-g experience near Perth last year either.

If you think Rolls Royce aircraft group is bad, you should take a look at their Energy Group. Now there is a total failure. The only thing they have left is squeeze as much money out of their F136 program.

Buying RR -- Big Mistake!!!

Rolls Royce aircraft has been relying on just their brand for too long, and time to do sone soul searching!