Rolls-Royce is riding a wave of optimism as the benefits of job cuts and management changes overshadow investor concerns about glitches with engines that power Boeing’s 787 jet. The stock rose as much as 7.3% Thursday as CE Warren East’s declared his “growing confidence” in an improved earnings outlook, even as the hit from the Trent 1000 turbine that powers the jet is set to reach 1.3 US$1.7b. East has eliminated thousands of jobs, reorganised Rolls to make it more responsive to demand and struck deals to sell fuel-injection and ship-design arms. The company outlined plans in June to cut another 4,600 management and back-office posts to help blunt the impact of the 787 problems, which have forced airlines to ground planes while their engines receive emergency repairs. <br/>
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The US TSA is disputing reports the agency is considering curbing passenger screening at more than 150 small- and medium-sized airports across the US. The reports allege a TSA working group is examining a proposal to save US$115m annually by cutting screening at airports serving aircraft with 60 or fewer seats. A TSA spokesman said the proposal amounted to an “exercise from a pre-decisional budget meeting,” and denied the agency was actively considering such a move. He said that TSA would have to complete impact and risk assessments before reducing service—assessments the agency reportedly has no plans to undertake. The TSA also described reports criticising the agency’s “Quiet Skies” program as “misleading,” arguing the program “does not target ordinary or normal citizens.” <br/>