Qantas grounds A380s for 3 days amid probe

Australia's Qantas Airways has grounded its A380 fleet for at least another three days as it investigates oil leaks as a possible cause of an explosion that tore apart one of a superjumbo's engines last week.

Qantas shares fell as its reputation as one of the world's safest airlines came under the spotlight and investors started counting the financial cost of grounding aircraft and compensating passengers.

The incident has rattled the global aviation industry, and the incident has been damaging for Rolls-Royce, which is developing new engines for the next generation of commercial jets.

Qantas said its six Airbus A380 aircraft would be grounded for at least another 72 hours after an investigation found oil leaks in three Rolls-Royce engines.

Oil leaks in the engines' turbine areas are now the focus of the investigation into Thursday's incident where an engine broke apart above Indonesia's Batam Island, forcing the passenger plane to make an emergency landing in Singapore.

"We are working with Rolls- Royce to ensure we have an appropriate fix to this issue. Our team, Airbus and Rolls-Royce are working around the clock to ensure that. We are not looking at any other alternatives," Chief Executive Alan Joyce told reporters.

Singapore Airlines said Monday that it had completed engine inspections on all of its A380s and did not find any issues of concern. Lufthansa has also been conducting additional tests on its A380 fleet.

Analysts said that if Qantas's six A380 planes were grounded beyond a week, it could affect the company's profit forecast for this year.

However, that hasn't stopped Japan's low-fare Skymark Airlines from purchasing four Airbus A380 superjumbos, with an option to buy two more as it plans to launch international routes, in a deal worth $2.8 billion.

"Skymark Airlines signed a basic agreement with Airbus on the introduction of Airbus A380," Skymark Airlines said in a statement Monday. "The company plans to sign the contract on purchasing six aircraft, including an option on two aircraft, in the spring of next year."

Agencies