WRAPUP 8-Engine problems hit second Qantas aircraft

* Sydney-bound Boeing 747 makes emergency landing

* Follows emergency landing by A380

* Both aircraft had Rolls-Royce engines

* Singapore Airlines resumes A380 flights

* Qantas shares end down 1 pct
(Updates with Qantas statement; adds quote)

By Vivek Prakash and Michael Perry

SINGAPORE/SYDNEY, Nov 5 (BestGrowthStock) – Engine trouble forced a
Qantas Airways Ltd jet to make an emergency landing in
Singapore on Friday, less than 48 hours after another of the
Australian carrier’s aircraft had to land prematurely because
its engine blew up.

The Sydney-bound Boeing 747-400 aircraft, with 412 people
on board, returned to the airport 20 minutes after takeoff due
to “an issue with one of its engines,” Qantas Airways Ltd
(QAN.AX: ) said in a statement.

That came a day after a Qantas Airbus A380 jet was forced
to make an emergency landing after one of its four Rolls-Royce
Plc (RR.L: ) engines appeared to break apart in flight,
scattering debris over an Indonesian island.

“Around 20 minutes into the flight we heard a loud bang,”
Ranjan Sivagnanasundaram, an Australian citizen in his early
50s who was on Friday’s flight, told Reuters. “It was a very
big shock to us, especially after what happened yesterday.”

The Boeing Co (BA.N: ) aircraft also had been equipped with
Rolls-Royce engines.

Officials at British engine-maker Rolls-Royce did not
return calls seeking comment.

The earlier incident saw Qantas ground its fleet of six
A380s pending safety checks that will take 24 to 48 hours and
led other airlines to check their own A380s.

“We believe this is probably, most likely, a material
failure or some sort of design issue,” Qantas Chief Executive
Alan Joyce told a news conference in Sydney. “If we don’t find
any adverse findings in those checks, the aircraft will resume
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ EU watchdog flagged engine wear in August [ID:nSGE6A401F] Incident poses Airbus cost challenge [ID:nLDE6A30KT] Rolls' woes could boost GE, Pratt & Whitney [ID:nN05242153] FACTBOX-Qantas has never had fatal accident [ID:nSGE6A306M] FACTBOX-Sizing up the Airbus A380 [ID:nLDE6A31OW] TIMELINE-Events leading up to A380 incident [ID:nLDE6A31KZ] For a graphic, click: http://link.reuters.com/fan73q Slideshow of Qantas plane: http://r.reuters.com/pum73q ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Separately, a European Union air safety body confirmed it
told airlines in August to make checks after finding “wear,
beyond engine manual limits,” on the type of Rolls-Royce
engines fitted to the Qantas jet and some other A380s.

The incidents could provide Rolls’ rivals General Electric
Co (GE.N: ) and the Pratt & Whitney unit of United Technologies
Corp (UTX.N: ) with a chance to grab market share from the No. 2

“Things move slowly in the engine business, but there is no
question that you have a series of events that really put
Rolls-Royce’s reputation at risk,” said Richard Aboulafia, vice
president at aviation consultancy Teal Group.

GE is the world’s largest maker of jet engines, Pratt comes
in third.


The A380 engine failure on Thursday was the biggest
incident to date for the world’s largest passenger plane, which
went into service in 2007.

Rolls-Royce and Airbus parent EADS (EAD.PA: ) told operators
of the Rolls-equipped A380 jets to have them inspected.

The Engine Alliance, a joint venture between GE and Pratt
that makes a rival engine for the A380 told users: “The EA is
not recommending engine inspections as our design is unique …
and thus has no correlation with the RR engine.”

Singapore Airlines Ltd (SIAL.SI: ) resumed flying its 11
A380s on Friday, lifting a grounding order imposed after the
first incident.

Deutsche Lufthansa AG (LHAG.DE: ) said it had withdrawn an
A380 from a Frankfurt-Johannesburg flight because it had not
had enough time to check the engines before departure.

Passengers who had been on the first flight said a second
engine on the stricken Qantas aircraft had failed to shut down
once the jet was on the tarmac, sparking fears it could ignite
spilling fuel.

Passengers said after landing they had been told of the
dangers of using any electronic device as fire fighters sprayed
the aircraft, which was leaking fuel from a hole in the wing.

“Obviously in the back of your mind you are concerned about
a very hot engine next to leaking fuel,” passenger Christopher
Lee said. “Obviously, you are in a state of anxiety.”

Qantas CEO Joyce said the second engine could have been
harmed by the mishap to the first engine, which caused parts to
fly off.

Aviation experts said the first plane being able to land
despite the engine mishap illustrated the safety of modern

“The fact that it survived the damage is a credit to the
design. Twenty years ago that would probably have taken the
aircraft out of the sky,” said John Page, senior lecturer in
Aerospace Engineering at the University of New South Wales.

Airbus sales chief John Leahy said he had not received
complaints from airlines about the A380’s safety.

“We have to find out the reason for the engine failure,” he
told Reuters in Paris.

Qantas said its engineers, along with those from Airbus and
Rolls-Royce, were working to determine what went wrong.

“Rolls-Royce have identified a number of potential areas,”
said Joyce. “This issue does not relate to maintenance.”

Rolls-Royce has maintained the engines since they were
installed on the aircraft, he said. The company gets a goodly
proportion of its revenues from such service contracts.


European plane-maker Airbus and Rolls-Royce lost over $1.5
billion in combined market value on Thursday

EADS shares were flat on Friday, after Thursday’s 4 percent
fall, while Rolls-Royce shares fell a further 3.3 percent to
601 pence after a 5 percent slide the previous day. Boeing was
up 0.7 percent at $71.37 on the New York Stock Exchange.

Qantas shares ended down 1 percent at A$2.86 on Friday,
underperforming the broader Australian market (.AXJO: ), which
advanced 1.2 percent to a six-month high.

Commonwealth Bank aviation analyst Matt Crowe said there
was unlikely to be long-term damage to its reputation, as
investors had tended to move on from previous safety incidents,
which have never resulted in a fatal crash for Qantas.
(Additional reporting by Scott Malone in Boston, Victoria
Thieberger in Melbourne and Kevin Lim and Harry Suhartono in
Singapore; writing by Scott Malone; editing by Mark Bendeich,
Dan Lalor, Gerald E. McCormick and Andre Grenon)

WRAPUP 8-Engine problems hit second Qantas aircraft