In a recent post, we noted that Qantas Airways had filed a preliminary action in the Australian federal court. The lawsuit arose from the failure of a Rolls-Royce engine on November 4, 2010, which led to a temporary grounding of Qantas’ entire A380 fleet.
Qantas announced today (link) that it has reached a settlement agreement with Rolls-Royce which includes a discontinuance of the lawsuit. While the terms of the settlement are confidential, the profit and loss impact of the settlement will reportedly be recognized in Qantas’ financial reports as A$95 million.
Last month, the Australian Transport Safety Bureau (ATSB) released an interim factual report (link) stating that the failure was caused by a manufacturing defect in an oil feed pipe. The ATSB’s investigation is ongoing and a final report is expected in mid-2012.