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Qantas has had a win in court that could prove important if talks between it and Rolls Royce break down.
The airline has won a Federal Court case preserving its right to sue Rolls Royce under Australia’s Trade Practices Act.
This means the case won't be heard in Britain, where Rolls Royce is based.
Rolls Royce manufactures the Trent 900 engines used on Qantas’s Airbus A380 jets, which were grounded recently after an engine on one of its A380s exploded over Indonesia.
“Today's action allows Qantas to keep all options available to the company to recover losses as a result of the grounding of the A380 fleet and the operational constraints currently imposed on A380 services,'” the airline said in a statement.
Qantas chief executive Alan Joyce said the airline was in talks with the engine maker over financial compensation.
'We are in a position where we are starting to talk to them about where this ends up and where it goes, and that dialogue will continue,'' he said.