Engine explosion has Qantas, Rolls Royce, investors jittery
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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.
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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.