Rolls-Royce announced today it had suspended work on the Trent 900 engine for the Airbus A380 superjumbo for about 12 months.
The A380 is now not expected to start deliveries until the last quarter of 2007, two years late, as engineers work to fix problems in wiring the mammoth doubledecker plane.
A Rolls-Royce spokesman said the company did not expect immediate layoffs or any change in its financial guidance for the year.
"We are continuing to talk to Airbus about the exact details of their future requirements. Once we have the detailed engine programme requirements from Airbus and are clear on any potential impact on Rolls-Royce, we will consult with employee representatives," he said.
Rolls shares were down 1.1 per cent at 457-1/2 pence versus the FTSE 100 index which was up 0.01 per cent as of 9.57am.