Rolls-Royce facing £2bn cash reserve hit as flight numbers fall
26/01/2021 | news | business | 50
The company is set to burn through more cash than expected this year as Covid hits the travel sector.
1
26/01/2021 13:02:42 5 1
bbc
Hopefully we get back on track sooner rather than later and a drop in share value encourages new investment long term.
3
26/01/2021 13:08:38 3 6
bbc
What do you mean ?
2
26/01/2021 13:08:35 33 0
bbc
I bet those are 9000 very skilled workers, What a real shame for those who will be affected. I always look for the RR logo on the plane I am barding I find it reassuring.
7
26/01/2021 13:11:55 1 3
bbc
You have something in common with Trump - his 757 has RR RB211 engines !
1
26/01/2021 13:02:42 5 1
bbc
Hopefully we get back on track sooner rather than later and a drop in share value encourages new investment long term.
3
26/01/2021 13:08:38 3 6
bbc
What do you mean ?
13
26/01/2021 13:56:30 3 0
bbc
What he said, are you able to read words and understand them?
4
26/01/2021 13:11:31 20 5
bbc
Government needs to forge ahead with RR modular mini nuclear power installation. There should be next to no market for aviation for a very long time. Plenty more viruses out there, this sort of thing can happen regularly, and the prime problem is virus hosts moving about the world especially at speed. Quarantine locked up and secured must become the default normality.
5
26/01/2021 13:22:17 29 1
bbc
Still a great company, I'm one of the 3000 so far took early retirement to protect jobs for the young.
12
26/01/2021 13:50:46 1 12
bbc
And gentlemen in England now a-bed
Shall think themselves accurs'd they were not here,
And hold their man hoods cheap whiles any speaks
That fought with us upon Saint Crispin's day.
6
26/01/2021 13:07:57 11 1
bbc
Still need more runways do we???

I live next to Heathrow and 'plane spotting' has become just that - you are lucky if you see one !!
2
26/01/2021 13:08:35 33 0
bbc
I bet those are 9000 very skilled workers, What a real shame for those who will be affected. I always look for the RR logo on the plane I am barding I find it reassuring.
7
26/01/2021 13:11:55 1 3
bbc
You have something in common with Trump - his 757 has RR RB211 engines !
9
26/01/2021 13:47:11 9 0
bbc
Thanks for the comment, however I don`t think I will be using this as my claim to fame.
8
26/01/2021 13:31:51 1 4
bbc
I shouldn’t worry too much, the government will bail them out, after all they are bailing everybody else out
11
26/01/2021 13:50:17 2 5
bbc
NOT SO most of these big allegedly multinational are not actually owned by the UK, foreign middle eastern shareholders!! Especially R-R.

And gentlemen in England now a-bed
Shall think themselves accurs'd they were not here,
And hold their man hoods cheap whiles any speaks
That fought with us upon Saint Crispin's day.
7
26/01/2021 13:11:55 1 3
bbc
You have something in common with Trump - his 757 has RR RB211 engines !
9
26/01/2021 13:47:11 9 0
bbc
Thanks for the comment, however I don`t think I will be using this as my claim to fame.
10
26/01/2021 13:48:35 5 2
bbc
The first signs will be the Euro-short haul airlines, Norwegian being the first. Who will follow, sooner or later under lockdown or crash once the general public are actually allowed or want to fly once again. 2023 was mentioned as a joke in 2019!
The EU is going to have to bail out its southern half once again, plus possible the FRENCH in the middle of 2022/2023 maybe!!
8
26/01/2021 13:31:51 1 4
bbc
I shouldn’t worry too much, the government will bail them out, after all they are bailing everybody else out
11
26/01/2021 13:50:17 2 5
bbc
NOT SO most of these big allegedly multinational are not actually owned by the UK, foreign middle eastern shareholders!! Especially R-R.

And gentlemen in England now a-bed
Shall think themselves accurs'd they were not here,
And hold their man hoods cheap whiles any speaks
That fought with us upon Saint Crispin's day.
5
26/01/2021 13:22:17 29 1
bbc
Still a great company, I'm one of the 3000 so far took early retirement to protect jobs for the young.
12
26/01/2021 13:50:46 1 12
bbc
And gentlemen in England now a-bed
Shall think themselves accurs'd they were not here,
And hold their man hoods cheap whiles any speaks
That fought with us upon Saint Crispin's day.
Removed
3
26/01/2021 13:08:38 3 6
bbc
What do you mean ?
13
26/01/2021 13:56:30 3 0
bbc
What he said, are you able to read words and understand them?
27
26/01/2021 17:08:06 4 1
bbc
There is no direct link between the share price and the balance sheet and cash reserves. If up I buy shares in RR today, my money goes to an existing shareholder, not the company. Therefore buying/investing in RR today will have zero impact

The company may need to issue new shares, meaning current holders will be diluted, or the company may need to borrow additional funds
14
26/01/2021 14:02:20 29 0
bbc
One of the jewels of British engineering - let's hope for their employees, and all of us, they survive and remain strong enough to be able to diversify towards cleaner forms of propulsion in the coming years.
15
26/01/2021 14:10:38 27 2
bbc
Rolls is one of the greatest British companies, with incredibly skilled and talented staff. The UK Government should ensure that it survives, as without the pandemic it is a hugely successful manufacturing business.
16
26/01/2021 14:19:35 26 4
bbc
Get your finger out Boris with the mini reactor start up. While you bluster the UK will get left behind. Don’t forget we led the world in civil nuclear in the 50s but now go cap in hand to China and France. How we have been emasculated by politicians of all persuasions. Bunch of jobsworths mainly.
Ex Rr and proud as such
17
26/01/2021 14:32:43 2 15
bbc
That's is what happens when you sell flying times, instead of jet engine
20
26/01/2021 14:56:23 20 4
bbc
Good, god. You clearly have ZERO understanding of how the civil aviation industry. GE, PRATT & W. SNECMA, all of them see their engines on the same basis. In future, perhaps you should stop yourself from commenting when you know nothing about the area in question.
39
26/01/2021 22:21:31 2 0
bbc
Aero-engine makers make most of their profit from maintenance & spares, very little from new sales. In the absence of any serious demand for new military engines (most governments don't have the money) a big reduction in operating hours, how does any aero-engine company make money?
12
26/01/2021 13:50:46 1 12
bbc
And gentlemen in England now a-bed
Shall think themselves accurs'd they were not here,
And hold their man hoods cheap whiles any speaks
That fought with us upon Saint Crispin's day.
Removed
19
26/01/2021 14:54:46 27 1
bbc
I am from Derby. This City is heavily reliant on RR, Toyota and train manufacturing. Given Brexit, Toyota's long-term future here is in doubt. Given COVID, RR and Bombardier are under real pressure. 1/3 of civil jet engine jobs have gone already. It is the second largest engine manufacture in the world. This GOVT should do all it can to support this great company.
17
26/01/2021 14:32:43 2 15
bbc
That's is what happens when you sell flying times, instead of jet engine
20
26/01/2021 14:56:23 20 4
bbc
Good, god. You clearly have ZERO understanding of how the civil aviation industry. GE, PRATT & W. SNECMA, all of them see their engines on the same basis. In future, perhaps you should stop yourself from commenting when you know nothing about the area in question.
22
26/01/2021 15:57:21 0 1
bbc
The underlying issue is the unit cost of three spool engines; it RR could produce a two spool engine as good as the GEnX it wouldn't be in such financial difficulties as it is.
21
26/01/2021 15:24:21 1 7
bbc
I would not be at all surprised to see RR go bust or be Nationalised AGAIN very soon.
20
26/01/2021 14:56:23 20 4
bbc
Good, god. You clearly have ZERO understanding of how the civil aviation industry. GE, PRATT & W. SNECMA, all of them see their engines on the same basis. In future, perhaps you should stop yourself from commenting when you know nothing about the area in question.
22
26/01/2021 15:57:21 0 1
bbc
The underlying issue is the unit cost of three spool engines; it RR could produce a two spool engine as good as the GEnX it wouldn't be in such financial difficulties as it is.
24
26/01/2021 16:18:08 4 0
bbc
The newest Rolls-Royce engines are better than GE engines, the problem for Rr now is that they pulled out of the small engines (A320 / 737) and concentrated on large engines XWB which have mostly been grounded due to pandemic.
36
26/01/2021 21:31:36 1 0
bbc
Not due to the Trent 1000. It has problems as does the GENX, it’s the lack of flying (COVID) that’s the problem.
23
26/01/2021 16:14:42 4 12
bbc
The government never got control of Covid in the first place, and opened up too soon. Common sense says we should have been closed down until there were no more Covid cases for several weeks, like the Chinese did in Wuhan. Boris & Co tried to do it on the cheap. Let's hope they now help Rolls Royce, like they did the bankers ten years ago. Nationalise the company if necessary.
26
26/01/2021 16:43:32 12 2
bbc
So easy to say with hindsight.
28
26/01/2021 19:03:26 0 0
bbc
We did that in the 70s.
46
TPB
26/01/2021 23:30:44 1 0
bbc
The unions are to blame then
22
26/01/2021 15:57:21 0 1
bbc
The underlying issue is the unit cost of three spool engines; it RR could produce a two spool engine as good as the GEnX it wouldn't be in such financial difficulties as it is.
24
26/01/2021 16:18:08 4 0
bbc
The newest Rolls-Royce engines are better than GE engines, the problem for Rr now is that they pulled out of the small engines (A320 / 737) and concentrated on large engines XWB which have mostly been grounded due to pandemic.
25
26/01/2021 16:40:06 2 0
bbc
RR was in trouble long before the pandemic. It is not about RR engines being better than the competitors, it is about profitability. No point in any company making the best product on the market if it ends up going out of business.
24
26/01/2021 16:18:08 4 0
bbc
The newest Rolls-Royce engines are better than GE engines, the problem for Rr now is that they pulled out of the small engines (A320 / 737) and concentrated on large engines XWB which have mostly been grounded due to pandemic.
25
26/01/2021 16:40:06 2 0
bbc
RR was in trouble long before the pandemic. It is not about RR engines being better than the competitors, it is about profitability. No point in any company making the best product on the market if it ends up going out of business.
23
26/01/2021 16:14:42 4 12
bbc
The government never got control of Covid in the first place, and opened up too soon. Common sense says we should have been closed down until there were no more Covid cases for several weeks, like the Chinese did in Wuhan. Boris & Co tried to do it on the cheap. Let's hope they now help Rolls Royce, like they did the bankers ten years ago. Nationalise the company if necessary.
26
26/01/2021 16:43:32 12 2
bbc
So easy to say with hindsight.
13
26/01/2021 13:56:30 3 0
bbc
What he said, are you able to read words and understand them?
27
26/01/2021 17:08:06 4 1
bbc
There is no direct link between the share price and the balance sheet and cash reserves. If up I buy shares in RR today, my money goes to an existing shareholder, not the company. Therefore buying/investing in RR today will have zero impact

The company may need to issue new shares, meaning current holders will be diluted, or the company may need to borrow additional funds
23
26/01/2021 16:14:42 4 12
bbc
The government never got control of Covid in the first place, and opened up too soon. Common sense says we should have been closed down until there were no more Covid cases for several weeks, like the Chinese did in Wuhan. Boris & Co tried to do it on the cheap. Let's hope they now help Rolls Royce, like they did the bankers ten years ago. Nationalise the company if necessary.
28
26/01/2021 19:03:26 0 0
bbc
We did that in the 70s.
29
26/01/2021 19:36:18 3 14
bbc
Good I am so happy I did not get the job a couple of years ago. I found the hiring managers prepotent and condescendingly. After that the company went down, bribery and now in the crap. The Trent 2000 did not sell as it was no improvement only marketing. Now in IT I am laughing :)
30
26/01/2021 20:02:36 14 0
bbc
There’s no such thing as a Trent 2000. RR did well in not getting your ‘services’.
29
26/01/2021 19:36:18 3 14
bbc
Good I am so happy I did not get the job a couple of years ago. I found the hiring managers prepotent and condescendingly. After that the company went down, bribery and now in the crap. The Trent 2000 did not sell as it was no improvement only marketing. Now in IT I am laughing :)
30
26/01/2021 20:02:36 14 0
bbc
There’s no such thing as a Trent 2000. RR did well in not getting your ‘services’.
31
26/01/2021 20:27:10 2 4
bbc
you never see these on the roads anymore.
33
26/01/2021 20:53:41 8 1
bbc
It aero engine company not the luxury car they separate companies . The auto maker is owned by BMW.
32
26/01/2021 20:50:21 3 0
bbc
time for RR to lead the Hydrogen Aero Engine race ..... its the only way for air travel to resume ... Build the Engines..
38
26/01/2021 22:02:54 4 1
bbc
I'd be more impressed if they built the fuel tanks that are going to store this Hydrogen.
31
26/01/2021 20:27:10 2 4
bbc
you never see these on the roads anymore.
33
26/01/2021 20:53:41 8 1
bbc
It aero engine company not the luxury car they separate companies . The auto maker is owned by BMW.
34
26/01/2021 21:00:07 3 13
bbc
How many Billions of profit in the past? Stop whinging!! So many people have lost their incomes, homes, family etc., RR have made good money for share holders, What about the little People??? BBC Print that!
37
26/01/2021 22:02:20 5 2
bbc
The 'little people' who work for Rolls Royce, you mean?
41
26/01/2021 22:26:21 2 0
bbc
The profits from new engine sales are minimal, due to the fierce competition with GE & P&W. Profits on civil engines come mainly from spares & maintenance. If the flying hours are reduced, so are the profits. Don't forgets the supply chain, as the requirement for parts disappears.
49
27/01/2021 08:03:32 0 0
bbc
If you pay into a pension you likely "own" a little slice of this company... so it does affect the little people, of which there are a lot.
35
26/01/2021 21:29:47 1 2
bbc
RR cant go down (like BAE) ... Gov. Golden Share ... strategic capacity .. National Interest ...
22
26/01/2021 15:57:21 0 1
bbc
The underlying issue is the unit cost of three spool engines; it RR could produce a two spool engine as good as the GEnX it wouldn't be in such financial difficulties as it is.
36
26/01/2021 21:31:36 1 0
bbc
Not due to the Trent 1000. It has problems as does the GENX, it’s the lack of flying (COVID) that’s the problem.
44
26/01/2021 23:16:00 0 2
bbc
The Trent 1000 has severely impacted the profitability of RR and dragged its share price down. RR has, financially, been in the doldrums for several years: long before the pandemic. The reason that it has been hit so hard by the pandemic is because it was not in good shape before the pandemic and because the company lacks sufficient diversity in its revenue streams.
34
26/01/2021 21:00:07 3 13
bbc
How many Billions of profit in the past? Stop whinging!! So many people have lost their incomes, homes, family etc., RR have made good money for share holders, What about the little People??? BBC Print that!
37
26/01/2021 22:02:20 5 2
bbc
The 'little people' who work for Rolls Royce, you mean?
32
26/01/2021 20:50:21 3 0
bbc
time for RR to lead the Hydrogen Aero Engine race ..... its the only way for air travel to resume ... Build the Engines..
38
26/01/2021 22:02:54 4 1
bbc
I'd be more impressed if they built the fuel tanks that are going to store this Hydrogen.
40
26/01/2021 22:23:12 3 0
bbc
and the technology to produce hydrogen on a large scale.
17
26/01/2021 14:32:43 2 15
bbc
That's is what happens when you sell flying times, instead of jet engine
39
26/01/2021 22:21:31 2 0
bbc
Aero-engine makers make most of their profit from maintenance & spares, very little from new sales. In the absence of any serious demand for new military engines (most governments don't have the money) a big reduction in operating hours, how does any aero-engine company make money?
38
26/01/2021 22:02:54 4 1
bbc
I'd be more impressed if they built the fuel tanks that are going to store this Hydrogen.
40
26/01/2021 22:23:12 3 0
bbc
and the technology to produce hydrogen on a large scale.
43
26/01/2021 23:01:55 1 0
bbc
And compress it so that it can be stored.
34
26/01/2021 21:00:07 3 13
bbc
How many Billions of profit in the past? Stop whinging!! So many people have lost their incomes, homes, family etc., RR have made good money for share holders, What about the little People??? BBC Print that!
41
26/01/2021 22:26:21 2 0
bbc
The profits from new engine sales are minimal, due to the fierce competition with GE & P&W. Profits on civil engines come mainly from spares & maintenance. If the flying hours are reduced, so are the profits. Don't forgets the supply chain, as the requirement for parts disappears.
42
26/01/2021 22:59:16 4 3
bbc
Needless flying around the world is going to have to stop - there are going to be whole swathes of formerly "blue chip" industries which are going to have to face up to the climate and pandemic issue future.
40
26/01/2021 22:23:12 3 0
bbc
and the technology to produce hydrogen on a large scale.
43
26/01/2021 23:01:55 1 0
bbc
And compress it so that it can be stored.
36
26/01/2021 21:31:36 1 0
bbc
Not due to the Trent 1000. It has problems as does the GENX, it’s the lack of flying (COVID) that’s the problem.
44
26/01/2021 23:16:00 0 2
bbc
The Trent 1000 has severely impacted the profitability of RR and dragged its share price down. RR has, financially, been in the doldrums for several years: long before the pandemic. The reason that it has been hit so hard by the pandemic is because it was not in good shape before the pandemic and because the company lacks sufficient diversity in its revenue streams.
50
27/01/2021 10:11:07 0 0
bbc
Like GE’s diversity that has brought it to it’s knees?
45
TPB
26/01/2021 23:28:13 1 1
bbc
Wow, for once a true Business story on the BBC
23
26/01/2021 16:14:42 4 12
bbc
The government never got control of Covid in the first place, and opened up too soon. Common sense says we should have been closed down until there were no more Covid cases for several weeks, like the Chinese did in Wuhan. Boris & Co tried to do it on the cheap. Let's hope they now help Rolls Royce, like they did the bankers ten years ago. Nationalise the company if necessary.
46
TPB
26/01/2021 23:30:44 1 0
bbc
The unions are to blame then
47
26/01/2021 23:53:47 2 5
bbc
The Pandemic has made it increasingly obvious that sitting in an aluminium tube, breathing the shared (infrequently changed) air supply, for hours, with strangers, is ludicrous.
Historically the plague was spread by ships.
Now aircraft fill that role.
RR need to switch their focus to clean air supply, into 'documented tested' smaller groups, in compartments!
Until they perfect that, forget engines
48
27/01/2021 00:02:21 0 0
bbc
Aerospace industry is in a mess. With Weapons industry too.
34
26/01/2021 21:00:07 3 13
bbc
How many Billions of profit in the past? Stop whinging!! So many people have lost their incomes, homes, family etc., RR have made good money for share holders, What about the little People??? BBC Print that!
49
27/01/2021 08:03:32 0 0
bbc
If you pay into a pension you likely "own" a little slice of this company... so it does affect the little people, of which there are a lot.
44
26/01/2021 23:16:00 0 2
bbc
The Trent 1000 has severely impacted the profitability of RR and dragged its share price down. RR has, financially, been in the doldrums for several years: long before the pandemic. The reason that it has been hit so hard by the pandemic is because it was not in good shape before the pandemic and because the company lacks sufficient diversity in its revenue streams.
50
27/01/2021 10:11:07 0 0
bbc
Like GE’s diversity that has brought it to it’s knees?