Rolls-Royce share price: Air New Zealand cancels flights amid engine issues

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Auckland Airport has welcomed the announcement by Air New Zealand and Singapore Airlines that they will increase flights on the Singapore to Auckland route.

"Rolls-Royce does not have any replacement engines available while this maintenance work is undertaken which means some schedule changes are unavoidable", it said.

On Wednesday, Air New Zealand's Auckland-Buenos Aires service was two hours enroute to Argentina when it turned back to Auckland after the crew was "alerted to abnormal indications on one of the engines", the TAIC said on its website.

Air New Zealand will be making cancellations and rescheduling some worldwide flights due to the incidents.

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The tie-up would put the newly formed group in a strong position in major markets such as the UK, Italy and Australia, it added. The news comes after the Financial Times newspaper in October reported that a merger deal between the two companies was close.

Transport Accident Investigation Commission (TAIC) chief commissioner Jane Meares said the commission has opened inquiries into both events.

Singapore Airlines senior vice president marketing planning, Tan Kai Ping, said the alliance with Air New Zealand had already benefited customers through more capacity, choice, improved connections and more codeshare destinations.

"Our investigation team is working closely with the airline, Civil Aviation Authority, engine-manufacturer Rolls Royce, and our colleague agencies in the United Kingdom and USA".

Rolls-Royce says that it regrets the disruption caused to Air NZ, and the two parties are working together to restore full operations of the Trent 1000 engines as soon as possible. The investigation into that incident recommended that Rolls-Royce review the design of the intermediate pressure turbines. The British engine maker had previously cautioned that 400 to 500 Trent 1000 engines were affected by issues with components wearing out earlier than expected.