Cathay Pacific's Airbus A350 Engine Failure: What You Need to Know and How It Impacts Your Investments
By Lisa Barrington
Hong Kong's Cathay Pacific Airways (OTC:) has initiated an inspection of all 48 Airbus A350 widebody jets following an in-flight failure of a Rolls-Royce (OTC:) engine component.
What Happened During the Flight?
On Monday, flight CX383 from Hong Kong to Zurich faced an issue shortly after takeoff. According to FlightRadar24, the five-year-old Airbus A350-1000 circled twice and dumped fuel over the sea before safely returning to Hong Kong about 75 minutes post-departure. Cathay Pacific confirmed an engine component failure upon the aircraft's return.
Why Did the A350 Engine Fail?
Although Cathay Pacific hasn't specified the failed engine component, it mentioned it was the first failure of its kind on any A350 aircraft globally. Sources indicate the failure involved a fuel nozzle within the Rolls-Royce XWB-97 engine, which powers the A350-1000.
Types of Airbus A350 Aircraft
The Airbus A350, a twin-aisle, long-haul aircraft, carries between 300 and 480 passengers and comes in two variants: the A350-900 and the larger A350-1000. Both models use Rolls-Royce engines exclusively.
What Engine Does the A350 Use?
The A350-1000 and A350 freighter are equipped with Trent XWB-97 engines, Rolls-Royce's largest civil jet engine. The more popular A350-900 uses Trent XWB-84 engines.
Are All A350 Engines Affected?
The extent of the issue remains unclear. The incident involved one of Cathay Pacific's 18 A350-1000 planes, but the airline is inspecting all its 30 A350-900s as a precaution. Cathay Pacific has identified several engine components that need replacing but hasn't disclosed affected models. Rolls-Royce is collaborating with Cathay Pacific, Airbus, and relevant authorities.
Impact on Rolls-Royce Shares
Rolls-Royce shares plummeted 6.5% on Monday, reflecting market concern over the engine failure.
Global Fleet of A350 Aircraft
According to Swiss aviation intelligence provider ch-aviation, there are 88 A350-1000 jets in operation globally. Major operators include Qatar Airways (24 planes), British Airways (18), Cathay Pacific (18), Virgin Atlantic (12), and Etihad Airways and Japan Airlines (JAL) with five each. Additionally, 520 A350-900s are operational worldwide. It is yet unclear if other airlines are inspecting their engines.
Flight Cancellations
As a result of the inspections, Cathay Pacific cancelled 24 return flights between Hong Kong and various destinations including Sydney, Osaka, Tokyo, Taipei, Bangkok, and Singapore until the end of Wednesday. Further cancellations will be announced as inspections progress. Cathay Pacific's shares dropped 0.5% in Tuesday morning trade.
Responses from Other Airlines
Tokyo-based JAL, operating five A350-1000s, has sought more information from Rolls-Royce but hasn’t halted A350 flights. Taiwan’s China Airlines, which operates 15 A350-900s, reported no operational impact but remains vigilant for manufacturer instructions.
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Breaking It Down: What This Means for You and Your Finances
1. Immediate Impact on Travel: If you have booked flights with Cathay Pacific or other airlines operating A350 aircraft, anticipate potential delays or cancellations.
2. Investment Perspective: Rolls-Royce shares saw a significant drop, signaling investor concern. If you hold or are considering investing in Rolls-Royce, monitor ongoing developments closely.
3. Airline Industry Ramifications: The incident may prompt broader inspections and operational reviews across airlines using A350s, potentially affecting schedules and operational costs.
4. Reliability Concerns: Frequent flyers and investors should be aware of the reliability implications of such high-profile engine failures on the perceived safety and operational stability of airlines.
In summary, while the immediate issue seems contained, the ripple effects on the airline industry, stock markets, and travel plans could be extensive. Stay informed and prepared for possible disruptions.