Rolls-Royce could shut down its civil aerospace business for two weeks during the summer in a bid to manage costs amid the coronavirus pandemic.
“As we continue to manage our cost base in response to the ongoing impact of the COVID-19 pandemic on the whole commercial aviation sector, we are proposing a two-week operational shutdown of Civil Aerospace operations which are located around the world but the majority are in the UK where our primary site is in Derby,” it says.
“Exactly how the shutdown operates needs to be discussed with union and employee representatives and abide by national laws.”
The announcement follows the release of R-R’s outlook in late January, in which it forecast that twin-aisle, long-haul flying hours will be at just 55% of pre-crisis levels during 2021, sharply lower than its previous forecast of 70%.
R-R remarks that it is also looking at its Singapore operations.
“In Singapore, we continue to look at cost management options that are practical for our operations and setup,” it says. We are engaging directly with our colleagues as well as the union and relevant government stakeholders on this.”
The company will disclose its full-year results in March. R-R is profoundly affected by Covid-19, given that its civil aerospace business is heavily weighted toward larger engines on widebodies.