Japan Airlines wants to discuss 787 grounding compensation with Boeing

TOKYO Mon Feb 4, 2013 1:07pm IST

A Japan Airlines aircraft (above) approaches for landing as an All Nippon Airways' Boeing Co's 787 Dreamliner plane parks on the tarmac at Haneda Airport in Tokyo February 4, 2013. REUTERS/Toru Hanai/Files

A Japan Airlines aircraft (above) approaches for landing as an All Nippon Airways' Boeing Co's 787 Dreamliner plane parks on the tarmac at Haneda Airport in Tokyo February 4, 2013.

Credit: Reuters/Toru Hanai/Files

Stocks

   

TOKYO (Reuters) - Japan Airlines Co Ltd (9201.T) said it will talk to Boeing Co (BA.N) about compensation for the grounding of the 787 Dreamliner, adding that the idling of its jets would cost it nearly $8 million from its earnings through to the end of March.

The carrier, which operates seven of the 50 Dreamliners in service around the world, said robust demand on European, North American and Southeast Asian routes would help offset the impact of the 787's grounding, and it increased its annual operating profit forecast by almost 13 percent.

"Rather than negotiations with Boeing, the important thing now is getting the 787 flying again safely as soon as we can," said JAL's president Yoshiharu Ueki. "However, when the situation has settled down we can and are preparing to begin those talks."

Rival All Nippon Airways (9202.T), which has more 787s than JAL, said last week it would seek compensation from Boeing once the amount of damages was clearer.

JAL raised its operating profit forecast to 186 billion yen for the year to end-March, from a previous estimate of 165 billion yen. It predicted the impact on its earnings from the grounding of the technologically advanced Dreamliner at around 700 million yen for the rest of this fiscal year.

All Boeing's 787s are out of action as investigators in Japan and the United States try to find the cause of two recent incidents with the plane's lithium-ion batteries - a battery fire on a JAL 787 at a U.S. airport and an emergency landing by another plane on a domestic ANA flight after battery problems triggered a smoke alarm.

U.S. officials said late last week they were making progress in their investigation into the battery fire at Boston airport.

(Reporting by Tim Kelly; Editing by Ian Geoghegan)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Microsoft Earnings

Microsoft Earnings

Microsoft sales beat Street hopes, cloud profits up.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

U.S. Economy

U.S. Economy

Spectre of no-inflation world looms over Fed's return to normal  Full Article 

Insider Trading

Insider Trading

Rengan Rajaratnam, SEC to settle civil insider trading charge.  Full Article 

Market Watch

Market Watch

Betting on the beaten up? Investors pin hopes on stocks in Europe, Japan.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage