(Reuters) -RTX Corp will need up to 60 days to inspect and fix each GTF engine used on Airbus jets that were found to have a new problem involving contaminated powder metal, CEO Greg Hayes said in an interview on Tuesday.
At least 1,200 of the Pratt & Whitney GTF engines that power Airbus A320neo jets will need "accelerated removals and inspections," RTX, formerly Raytheon, said earlier on Tuesday when it announced second-quarter results.
Engines potentially impacted by the metal powder issue will not be put through the entire overhaul cycle, which typically lasts four to five months, Hayes said.
Instead, they will be brought in for a briefer period where technicians will disassemble the engines, inspect the high pressure turbine disks potentially impacted by the metal contamination, and if needed replace the part.
"What we're trying to do is avoid all the other work that you'd normally do when you induct an engine," said Hayes. "We think that's a 60 day process max."
RTX shares plummeted 14% in morning trade before trimming those losses to off 10.7% on Tuesday afternoon.
Hayes acknowledged that news of the latest GTF problem was a "disappointment" but added that he expects the share price to recover, as the issue does not jeopardize RTX's long-term financial viability.
"As is typical with investors, they see bad news and they run," he told Reuters. "The smart money and the long money will come back to the stock. And they will recognize the fact that first of all, this is not a $10 billion problem for RTX."
(Reporting by Valerie Insinna; Editing by Marguerita Choy and Bill Berkrot)
