Qantas admits legal moves against Rolls Royce serve as protection for damage claims
Qantas Airways Ltd sought the protection of the Australian Federal Court for fear that Rolls Royce could win the favour of a British court and prevent the national carrier from seeking compensation on losses it incurred at the height of the Airbus A380 engine troubles in November.
The two parties are currently conducting talks to possibly settle the damage claims that industry analysts said could easily breach the $200 million mark should both companies failed to forge an amicable arrangement.
Qantas wants Rolls Royce to pay the damages as it claims that it absorbed millions in losses when its entire A380 fleet was grounded for almost three weeks last month as a series of engine woes plagued the Trent 900s that power the Airbus superjumbos servicing most of the airline's long-haul flights.
Documents filed by Qantas before the Federal Court showed that the airline opted for a pre-emptive move against Rolls Royce as safeguards for the engine manufacturer's deemed intention to ask a UK court for an anti-suit injunction that could prevent Qantas from even starting a legal proceeding to pursue its claims.
In a report by the Sydney Morning Herald, legal representatives of Qantas admitted that its thin options on the case prompted the company to avail of the court's protection.
Qantas also asked the Federal Court to keep specific parts of the documents from the public's eye, in light of the ongoing discussions with Rolls Royce.
The airline also argued before the court that damage claims were necessary to recover significant company losses it absorbed when many of its flights were cancelled as its A380 fleet was rendered useless for almost a month.
Qantas further revealed that more losses could be forthcoming as delivery delays of new Trent 900 engines could considerably hamper the full return of the company's Airbus aircrafts, with the company emphasising that Rolls Royce is guilty of deception when it provided defective engines to Airbus planes servicing its commercial flights.