TOKYO- On Thursday (January 4, 2023), Japan Airlines (JL) projected that the crash involving its flight JL516 with a Japan Coast Guard aircraft on Tuesday would lead to an estimated operating loss of approximately 15 billion yen ($104.81 million).
The company assured that the insurance would cover the loss of the aircraft and mentioned ongoing assessments to determine the impact on its earnings forecast for the financial year ending March 31.
Japan Airlines Crash Loss
According to sources within the insurance industry, U.S. insurer AIG held the primary position on a $130 million “all-risks” policy covering the two-year-old JAL Airbus A350 widebody jet, which was destroyed in a fire following a collision at Tokyo’s Haneda airport.
This incident marked the first-ever hull loss globally for the A350 model, as reported by the Aviation Safety Network. The A350, primarily constructed from carbon composite, entered commercial service in 2015.
Despite the severity of the crash, JAL’s shares showed a modest 0.5% rise as trading resumed after the New Year’s holiday. Initially, there was a decline of up to 2.4%, but the shares recovered from that initial drop.
Overnight, close to 200 passengers found themselves stranded at New Chitose Airport near the northern Japanese city of Sapporo. This situation arose because flights were delayed, causing late arrivals, as explained by a spokesperson from the airport operator, Hokkaido Airports, on Thursday.
First A350 Hull Loss
According to reports, moments before the catastrophic collision between a Japanese coastguard plane and a Japan Airlines passenger jet, an Airbus A350, air traffic control allegedly instructed the coastguard plane to hold short of the runway.
As per Japanese broadcaster NHK, citing a source, JAL flight 516 had been granted permission by an air traffic controller to enter the runway at Tokyo’s Haneda Airport just before the collision with the coastguard aircraft, resulting in a fiery incident.
The collision claimed the lives of five crewmembers on the Japan Coast Guard (JCG) plane, which was preparing to take off for the purpose of delivering aid to the city of Niigata in the aftermath of the deadly New Year’s Day earthquake.
The lone survivor from the Bombardier Dash-8 maritime patrol plane has been identified as Captain Genki Miyamoto, aged 39.
Allegedly, he managed to extricate himself from the wreckage and promptly radioed for assistance, informing his base, “The aircraft exploded on the runway. I escaped. The [condition of the] other crew members is unknown.”
Fortunately, all 379 passengers and crew on the commercial JAL flight were successfully evacuated just moments before the jet succumbed to flames—a turn of events that many have hailed as a ‘miracle.’
Flight Operations Severely Affected
Haneda Airport (HND) remained closed for several hours in the aftermath of the incident, and disruptions have persisted into today, with the expectation of approximately 100 flight cancellations affecting around 19,000 passengers.
Haneda stands as one of Japan’s busiest airports, particularly during the New Year holidays when numerous individuals embark on travels.
In the aftermath of the accident, all runways at Haneda were temporarily closed, resulting in the diversion of dozens of other planes.
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