Boeing 787 Dreamliner Grounding Cost Qatar Airline $200 Million
May 6th 2013 8:30AM
Last week, Air India said it would receive compensation from the Boeing Co. (NYSE: BA) due to the grounding of the company's 787 Dreamliner related to a battery problem in the plane's electrical system. Today, Qatar Airways said it, too, will receive compensation from Boeing for $200 million in lost revenues. The 787 was grounded for three months.
Qatar Airways owns five of the planes and Air India owns six. Ethiopian Airways, which owns four Dreamliners, recommenced commercial flight of the aircraft last week. All Nippon Airways and Japan Airlines, which combined own 24 Dreamliners, have estimated their losses due to the grounding at $110 million.
The actual amount of compensation for Air India and Qatar Airways has not been announced. Under the contract terms with Air India, Boeing cannot be held liable for loss of use for a problem with the aircraft, but an Air India official said that grounding the entire fleet was not foreseen and that Boeing had agreed to "compensate Air India for the [losses] it suffered." Presumably the company has reached a similar deal with Qatar Airways.
Boeing's shares are inactive in the premarket this morning, having closed Friday at $93.74 in a 52-week range of $66.82 to $93.95. The 52-week high was posted on Friday.
Filed under: 24/7 Wall St. Wire, Aerospace, Regulation Tagged: BA, featured