Further Qantas A380 Update

Sydney, 02 December 2010

Qantas has commenced discussions with Rolls-Royce on a range of issues concerning the A380 fleet, including financial and operational impacts, as a consequence of the QF32 Trent 900 engine failure on 4 November 2010, and will also consider legal options.

The airline has today filed a statement of claim and been granted an injunction by the Federal Court of Australia which will ensure that the company can pursue legal action against Rolls-Royce in Australia, particularly under the Trade Practices Act, if a commercial settlement is not possible.

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.

Qantas remains committed to working with Rolls-Royce on the Trent 900 inspection program, in consultation with Airbus and the Civil Aviation Safety Authority (CASA).

Rolls-Royce Trent 900 A380 engines remain subject to the European Aviation Safety Agency (EASA) Airworthiness Directive issued on 10 November, mandating that all Trent 900s undergo certain inspections every 20 flying cycles. Qantas will comply fully with this directive - both for A380s brought back into service and for new aircraft entering the Qantas fleet.

In addition, Qantas will undertake a further one-off inspection of its Rolls-Royce Trent 900 engines for possible tubing defects.

This follows the results of a detailed examination of components from the engine involved in the QF32 incident and recommendations by the Australian Transport Safety Bureau and Rolls-Royce.

Qantas has continued to operate a full international and domestic schedule, using alternate Boeing 747 aircraft where required on long-haul routes to the United States and Europe, to ensure minimal disruption to passengers.

Last week (26 November 2010), Qantas released an updated schedule for travel on its international network until 31 December 2010.

Further details on the QF32 incident are expected to be released tomorrow by the Australian Transport Safety Bureau (ATSB).

Issued by Qantas Corporate Communication (5049)