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Rolls Royce Sees Delay In Return To Single-digit Level Of AOGs On Trent 1000

Rolls Royce Holdings plc (RYCEF.PK,RR.L,RYCEY.PK) on Friday issued an update on the rate of recovery in Trent 1000 Aircraft On Ground or AOG.

The company said it now expects the return to single-digit level of AOGs on the Trent 1000 to be delayed until second quarter of 2020.

In early August, the company had cautioned that the rate of recovery in Trent 1000 AOG this year was likely to be slower than its original plans. This was due to the additional Maintenance Repair & Overhaul or MRO load resulting from faster deterioration of the high pressure turbine or HPT blade on the Trent 1000 TEN.

The company said it has remained a challenge.

Rolls Royce has also taken a proactive decision to accelerate intermediate pressure turbine or IPT blade replacement for the limited number of Package B and C engines yet to be fitted with the final standard of IPT blade. This has led to additional engine removals.

"We deeply regret the additional disruption that this will cause our customers and we continue to work closely with them to minimise the impact on their operations," the company said in its statement.

The company maintained its guidance for the cash costs of the Trent 1000 Package B and C in-service issues in 2019 and 2020.

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