Japan Airlines expects massive losses after deadly collision at Tokyo airport
Japan Airlines estimates the collision at Tokyo's Haneda airport will cost the company more than $100 million
When you disrupt the airline industry, you're disrupting the economy: Mark Murphy
Travel expert Mark Murphy shares his tips for holiday travelers and discusses pro-Palestinian protestors blocking access to airports.
Japan Airlines said Thursday it expected losses in excess of $100 million after one of its planes collided with a coast guard aircraft at Tokyo's Haneda airport and burst into flames.
All 379 passengers aboard JAL flight 516 were safely evacuated before the jet was consumed by a fire that took more than six hours to extinguish.
But five of the six crew of the smaller aircraft were killed, with the pilot surviving but badly injured. The Coast Guard plane had been on its way to deliver aid to areas on Japan's west coast that were hit by an earthquake.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JAPSY | JAPAN AIRLINES | 7.7 | +0.03 | +0.33% |
| AIG | AMERICAN INTERNATIONAL GROUP INC. | 75.98 | +1.34 | +1.80% |
The incident is under investigation by Japanese transport authorities. Local media reports said police are looking into possible professional negligence in the case, Reuters reported.
JAPAN AIRLINES PLANE BURSTS INTO FLAMES AFTER COLLISION AT TOKYO'S HANEDA AIRPORT, LEAVING 5 DEAD
Japan Airlines' A350 airplane is on fire at Haneda international airport in Tokyo, Japan January 2, 2024. (REUTERS/Issei Kato TPX IMAGES OF THE DAY / Reuters Photos)
Transcripts released by authorities show air traffic control ordering the Coast Guard plane to proceed to a holding point near the runway minutes before the crash, instructions the pilot appeared to have read back in acknowledgment.
Japanese authorities said on Wednesday the passenger jet had been given permission to land, but the smaller plane had not been cleared for takeoff, based on the transcripts.
The Coast Guard pilot had said after the crash that he received permission to enter the runway, according to Coast Guard officials.
The investigations are still in their early stages.
TOP AIRLINES FOR ON-TIME ARRIVALS IN 2023
Officials investigate a burnt Japan Airlines (JAL) Airbus A350 plane after a collision with a Japan Coast Guard aircraft at Haneda International Airport in Tokyo, Japan January 3, 2024. (REUTERS/Issei Kato / Reuters Photos)
Prior to the accident, a notice to pilots was posted that suggested a strip of stop-lights embedded in the tarmac as a safety measure to prevent wrong turns was out of service, Reuters reported.
Japan Airlines estimated on Thursday the accident would result in an operating loss of about 15 billion yen ($105 million).
The company said the loss of the aircraft will be covered by insurance. The airline is also discussing compensation with individual passengers after two people said their pets died in the accident, JAL officials said.
U.S. insurer AIG was reportedly the lead insurer on a $130 million "all-risks" policy for the two-year old plane that was destroyed in the incident, according to Reuters.
16-YEAR-OLD FLYING ALONE ENDS UP ON WRONG FRONTIER AIRLINES FLIGHT
An aerial view shows burnt Japan Airlines' (JAL) Airbus A350 plane after a collision with a Japan Coast Guard aircraft at Haneda International Airport in Tokyo, Japan January 3, 2024, in this photo taken by Kyodo. (Kyodo/via REUTERS / Reuters Photos)
Japan Airlines said it was assessing the impact of the loss on its earnings forecast for the financial year ending March 31.
JAL shares fell as much as 2.4% when trading resumed after the New Year's holidays, before closing up 0.8%, Reuters reported.
CLICK HERE TO READ MORE ON FOX BUSINESS
The crash and subsequent cleanup has caused hundreds of flight cancelations or delays at Haneda airport.
Nearly 200 passengers were also stranded overnight at New Chitose airport in Hokkaido, where JAL flight 516 originated from, per Reuters.
Reuters contributed to this report.