Rolls Royce fire to cost $500m

ROLLS Royce could face costs of up to $500m (£380m) in coming years as a result of the explosion last month in one of its Trent 900 engines.

The estimate, drawn from aviation experts, includes the cost of redesigning engine parts and potential compensation to customers, according to the FT. It is considerably higher than the firm’s estimate of a $66m profit loss this year from the mishap.

Rolls-Royce dismissed the estimate as “speculative”, but aviation expert Paolo Lironi said the quoted $66m figure was for a “first fix” and total costs would be a lot higher.