787 Grounding Will Cost Japan Airlines $7.5M

by Christopher Freeburn | February 4, 2013 11:16 am

Boeing (NYSE:BA[1]) is about to receive a bill for costs associated with the grounding of its 787 Dreamliner jets[2][3].

On Monday, Japan Airlines announced that it record $7.5 million in lost earnings through March after taking its seven 787 jets out of service and will ask the aircraft-maker for compensation. Other airlines, including United Airlines (NYSE:UAL[4]) and Nippon Airways (PINK:ALNPY[5]) have hinted that they may seek to recoup Dreamliner-related losses from Boeing as well, the New York Times noted.

Regulators around the world grounded the high-tech Dreamliners last month after a series of incidents resulted in emergency landings and a fire in the belly of a Dreamliner[6] at Boston’s Logan Airport.

Boeing has been working with regulators to identify and correct the problems that led to the incidents. While investigators had initially focused on the plane’s lithium-ion batteries, checks of the battery-maker’s production plants did not reveal any problems[7].

Only 50 Dreamliners have been delivered so far. Japan Airlines, one of the first airlines to receive the new jet, has orders for 38 more Dreamliners.

Shares of Boeing fell fractionally in Monday morning trading.

  1. BA: http://studio-5.financialcontent.com/investplace/quote?Symbol=BA
  2. grounding of its 787 Dreamliner jets: http://www.nytimes.com/2013/02/05/business/global/japan-airlines-says-787-grounding-will-cost-it-7-5-million.html?_r=1&
  3. [Image]: http://investorplace.com/wp-content/uploads/2013/01/787dreamliner.jpg
  4. UAL: http://studio-5.financialcontent.com/investplace/quote?Symbol=UAL
  5. ALNPY: http://studio-5.financialcontent.com/investplace/quote?Symbol=ALNPY
  6. emergency landings and a fire in the belly of a Dreamliner: http://investorplace.com/2013/01/faa-steps-in-and-grounds-troubled-boeing-787s/
  7. battery-maker’s production plants did not reveal any problems: http://investorplace.com/2013/01/boeing-787-battery-maker-cleared-so-far/

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