OM in the News: 787 Dreamliners Facing More Rolls-Royce Engine Flaws

Rolls Royce engine of a Boeing 787 Dreamliner

Faulty Rolls-Royce engine blades are deteriorating faster than expected, prompting additional groundings of Boeing Co.’s 787 jetliners for early repairs, reports Businessweek (Sept. 27, 2018). The discovery affects about 120 Trent 1000 turbines,  8% of the global fleet, and has frustrated efforts to reduce the number of idled planes after a series of engine issues.

Rolls-Royce uncovered the part’s shorter life-span in December, when Air New Zealand Dreamliners suffered in-flight turbine damage on successive days. The flaws add to Rolls-Royce’s struggle with design faults to the engines, which have already prompted the company to record $1.5 billion in charges. The engine maker also faces a blow to its image because the faults involve the high-profile 787, Boeing’s most advanced model, leaving airlines rushing to find replacement aircraft for long-haul routes. Air New Zealand said it will cost the airline $26 million this year. With as many as five of its 13 Dreamliners grounded at any given time, the carrier has had to lease three aircraft to make up for the shortage.

The intermediate pressure turbine blades — which had already been flagged for replacement — aren’t lasting long enough to meet the previously set maintenance schedule. Engine makers like Rolls-Royce typically foot the bill — including for the leasing of replacement aircraft — when design or production issues delay deliveries or force airlines to idle jets that are already in service. The U.K. manufacturer has gone on a fence-mending campaign as customers for the engine — including British Airways, Virgin Atlantic, and Norwegian Air — have been forced to hire jets this summer as turbines go in for repairs.

Classroom discussion questions:

  1. Why are flights being grounded?
  2. What is the cost to Boeing? To customers? To Rolls-Royce?