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)

  • Most Popular
  • Most Shared

Pending Reform

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

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