Japan Airlines announced on Thursday that it anticipates losses exceeding US$100 million following the destruction of one of its aircraft during a collision with another plane on the runway upon landing at Tokyo’s Haneda airport earlier this week.
All 379 individuals aboard the JAL Airbus A350 widebody aircraft managed to evacuate safely prior to the aircraft being fully consumed by the flames, which required over six hours to be extinguished.
On January 3, 2024, authorities commenced an investigation into a charred Japan Airlines Airbus A350 aircraft following a collision with a Japan Coast Guard plane at Haneda International Airport in Tokyo, Japan.
However, the smaller Coast Guard plane, which was en route to provide assistance to the earthquake-affected areas on Japan’s west coast, tragically lost five out of its six crew members. The surviving pilot sustained severe injuries.
Media reports indicate that transport authorities are currently investigating the circumstances surrounding the Coast Guard plane’s entry onto the runway during the landing of the passenger jet. Simultaneously, the police are conducting their own inquiry into potential professional negligence in this particular case.
The transcripts made available by the authorities reveal that air traffic control instructed the Coast Guard plane to proceed to a designated holding point close to the runway shortly before the accident. The pilot seemed to have acknowledged these instructions by reading them back.
According to coast guard officials, the pilot of the Coast Guard mentioned after the collision that he had received authorization to access the runway.
The ongoing investigations by the authorities have just commenced, and according to aviation experts, the occurrence of an airplane accident typically requires the failure of several safety precautions. Prior to the accident, a notice was issued to pilots, indicating that a series of stop lights embedded in the runway, serving as an additional safety measure to prevent incorrect turns, were not functioning. This information was shared by US regulators through a bulletin.
Significant losses
Japan Airlines projected on Thursday that the encounter between its flight JL516 and the Coast Guard aircraft would lead to an operational deficit of approximately 15 billion yen (US$104.81 million).
The company stated that insurance will cover the cost of the aircraft loss. Additionally, they mentioned that they are currently evaluating the effect this will have on their earnings forecast for the financial year ending on March 31st.
According to sources within the insurance industry, AIG, a US insurer, was the primary insurer for a comprehensive policy worth US$130 million that covered all risks associated with the two-year-old aircraft that was unfortunately destroyed by the fire. AIG has chosen not to provide any comments on the matter.
According to the Aviation Safety Network, the A350 model experienced its inaugural global hull loss, marking a significant event. This particular aircraft, predominantly constructed using carbon composite materials, commenced its commercial operations in 2015.
Following the New Year’s holiday, JAL’s shares witnessed a 0.4 percent increase as trading recommenced. Initially, they encountered a decline of up to 2.4 percent but managed to recover from this setback.
