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Rolls-Royce close to collapse.

Rolls Royce

Warren East has admitted that Rolls-Royce came close to collapse in the first few months of the pandemic.

As his seven-and-a-half-year stint leading the FTSE 100 aerospace engineer ends, the outgoing chief executive said: «A plausible outcome was that the business would not survive».

Its civil aerospace business, building and maintaining jet engines for the likes of Airbus and Boeing, crashed to represent only 10 per cent of revenues as the global airline fleet was all but grounded during widespread travel restrictions.

East has referred to the run-up to the rescue rights issue as Rolls’ darkest hour since its financial collapse and nationalisation in 1971.

«The issues were around our civil aerospace basis. The question was: is the world going to do without goods and people flying around? I was pretty confident that Covid was not going to be around forever. I argued that society doesn’t go back so that business would return».

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  1. Alex17 December 2022 at 16:55

    I had no idea that Rolls-Royce was in such trouble. If I think about it, it does make sense but I just didn't think about them in this context. I wonder what will happen next. Wouldn't want to see Rolls-Royce go down like this.

    ReplyDelete
  2. Gregory17 December 2022 at 18:10

    Covid has destroyed a lot of good businesses. Glad to hear RR wasn't among them but who knows what the future holds. They need to reorganize so they can stand a fighting chance.

    ReplyDelete

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