Early in the take-off run, the handling pilot of the BAe 146 heard a slight noise, followed by a loss of RPM and power on the number 2 engine. The pilot stopped the take-off at approximately 60 kts and returned the aircraft to the gate. The crew of another aircraft waiting at the runway holding point, reported seeing flames in the number 2 engine jet pipe.
An engine examination by the aircraft operator revealed that the engine fan assembly was not rotating. The operator removed the engine and forwarded it to the manufacturer in the USA for examination and repair. The Australian Transport Safety Board requested the National Transportation Safety Board of the USA to supervise the examination and provide a report to the Bureau.
The examination revealed that extensive damage to the engine had resulted from two first stage turbine blades separating, due to fatigue cracks emanating from the blade trailing edges near the blade platform.
The engine manufacturer advised that they had developed a corrective action for fatigue failure of first stage turbine blades, as contained in Service Bulletin ALF/FL 502/507 72-1043 of 11 January 1999, and revised on 3 September 1999. The manufacturer recommended that the service bulletin be complied with at the next access to the affected parts.
The first stage turbine was last accessible in February 1999, during a hot section inspection carried out by the engine manufacturer. There is no record indicating that the service bulletin was complied with at that time. The manufacturer offered no explanation for not incorporating the service bulletin.