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Japan’s ANA to seek damages from Boeing for 787 woes

Feb 01 2013, 22:29 IST
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SummaryJapan’s All Nippon Airways is prepared to recoup from Boeing whatever damages it suffers from flight cancellations and other costs caused by the worldwide grounding of 787 jets, a senior executive said.

Japan’s All Nippon Airways is prepared to recoup from Boeing whatever damages it suffers from flight cancellations and other costs caused by the worldwide grounding of 787 jets, a senior executive said today.

All Nippon Airways Co CFO Kiyoshi Tonomoto said the airline was focused on investigating the cause of the 787 battery problems, and it was not yet in damage negotiations with Boeing Co. He also said efforts were focused on minimising flight disruptions and revenue losses by using other aircraft.

“But we will negotiate with Boeing ,” Tonomoto told reporters. “We are now focus ing on assuring safety for our customers.”

ANA, the biggest customer for the Dreamliner with 17 of the jets in its fleet, canceled 459 domestic and international flights canceled this month, causing about 1.4 billion yen ($15.4 million) in lost revenue.

It said it was unclear when the aircraft will be cleared by regulators to fly again.

All 50 Boeing 787s in use around the world were grounded earlier this month after a lithium-ion battery in a 787 operated by ANA overheated. The plane was forced to make an emergency landing at an airport in southwestern Japan, shortly after takeoff.

Earlier in January, a 787 operated by ANA’s rival JapanAirlines, suffered a bat tery fire while parked at a Boston airport.

ANA and JAL were the first carriers to stop flying the 787 jets, known as the Dreamliner.

Tonomoto said ANA revenue will be eroded by about 3% for this fiscal year ending March 31 if the 787 services can't be resumed, but that will translate to minimal impact on profit. Such losses will be gradually reduced over coming months, he said.

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