Military

Costs of 787 Dreamliner's Grounding Keep Adding Up

Japanese airline All Nippon Airways, which has been affected as much as any other carrier by the grounding of the Boeing Co. (NYSE: BA) 787 Dreamliner, apparently has started to keep a tab on how much the grounding has hurt its sales.

Other airlines hurt by the mechanical problems of the Dreamliner likely will start to add up damages as well. Aside from lost sales as airlines halt delivery of the 787 because of the debacle, Boeing will face a series of demands for reparations.

Reuters reports:

ANA, valued at close to $7 billion, said it had not yet decided whether to claim compensation from Boeing, and it had no plans, for now, to change a growth strategy that has the technologically advanced 787 at its core. But it conceded that a prolonged grounding of the plane would impact that strategy, and will delay issuing its mid-term business plan for several weeks.

“We have not decided on our right to demand damages, but naturally going ahead, if a damage amount is decided for the incident, we will negotiate,” Chief Financial Officer Kiyoshi Tonomoto said at a briefing on ANA’s quarterly results.

Sponsored: Find a Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.