Japan's ANA counts cost of cancelled Dreamliner flights



All Nippon Airways (ANA), the launch airline for Boeing's 787 Dreamliner jet that has been grounded with undiagnosed battery problems, said it lost more than US$15 million in revenue from having to cancel Dreamliner flights this month.

Asia's top airline by revenue said it was unclear as to when Boeing's sophisticated new plane would resume commercial flights, making it harder to predict the longer-term financial impact of having the plane idle.

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.

The Dreamliner, which Boeing says uses a fifth less fuel than traditional planes, opens up new international routes that ANA's existing fleet can't handle.

All 50 of the 787s Boeing has delivered to airlines to date are out of action as investigators in Japan and the United States try to find the cause of two recent incidents with the 787's lithium-ion batteries - a battery fire on a Japan Airlines 787 at a US airport and an emergency landing by another plane on a domestic ANA flight after battery problems triggered a smoke alarm.

The grounding of the global Dreamliner fleet - ANA operates 17 of the lightweight, carbon-composite planes - has forced airlines to cancel flights and reschedule passengers on to alternative planes.

ANA has cancelled close to 850 flights until February 18, affecting over 82,000 passengers. The Dreamliner makes up around 7 per cent of ANA's fleet, and the airline normally operates around 1,000 flights a day and carries 3.7 million passengers each month. ANA has around 150 trained 787 pilots staying at home. As flights are rescheduled, the carrier's Boeing 777 pilots are having to take the strain, with the extra workload.

"Obviously (the grounding) is a cost increase, but it's not a massive change of fleets," said a foreign hedge fund manager.

* Reuters

Voy!%20Voy!%20Voy!
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Omar%20Hilal%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Muhammad%20Farrag%2C%20Bayoumi%20Fouad%2C%20Nelly%20Karim%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
Essentials

The flights
Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes.
The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast.
The tours 
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.

COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.