Rolls-Royce's roar goes quiet
Qantas's launch of legal action against Rolls-Royce yesterday provided critics of the British engineering firm with fresh ammunition. They question whether Rolls-Royce has taken a sufficiently tight grip of what could still be a public relations disaster.
Those who equate Rolls-Royce's problems with the fate that befell BP earlier this year exaggerate the point. And while Rolls-Royce's share price has fallen since the Qantas incident, there has hardly been the sort of collapse we saw at BP. Indeed, Qantas's first legal claim yesterday was not sufficient to stop Rolls-Royce shares rising. And yet the radio silence from the company remains deafening. Having surrendered the airwaves during this episode, Rolls-Royce may find it tough to get on the front foot if matters take a turn for the worse.