Japan Airlines plane collision loss estimated at $105 million

Japan Airlines plane collision loss estimated at $105 million | Insurance Business Asia

Insurance News

Japan Airlines plane collision loss estimated at $105 million

Overall impact still being evaluated, as well as its effects on financial projections

Insurance News

By
Kenneth Araullo

Japan Airlines has disclosed an estimated operating loss of approximately JPY15 billion (US$104.81 million) following the collision of its flight JL516 with a Japan Coast Guard aircraft earlier this week.

The incident, which occurred at Tokyo’s Haneda Airport, involved the airline’s two-year-old Airbus A350 widebody jet, which was significantly damaged by fire because of the collision.

According to a Nikkei Asia report, the airline confirmed that the loss of the aircraft would be covered by insurance. However, the company is still evaluating the overall impact of the incident on its financial projections for the fiscal year ending March 31.

In another earlier report, sources within the insurance industry have indicated that AIG is the lead insurer on the $130 million “all-risks” insurance policy for the destroyed JAL Airbus A350. This marks the first-ever hull loss of an A350 model globally, a fact noted by the Aviation Safety Network. The A350, predominantly constructed from carbon composite materials, has been in commercial service since 2015.

Regarding the incident, it was reported that all 379 passengers on the JAL airliner successfully evacuated from the burning plane post-collision. Five out of six crew members on the Coast Guard aircraft died in the crash.

Japanese authorities, based on control tower transcripts, stated on Wednesday that while the JAL passenger jet had been cleared for landing, the smaller Coast Guard plane had not received clearance for take-off.

Investigations into the crash have commenced, but many details about the circumstances leading to the accident remain unclear, including the reasons behind the two aircraft being on the same runway at the time of the collision.

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