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SAS: Grounded Jets Caused Drop in Earnings

Published fredag 9 november 2007 kl 10.10

Scandinavian Airlines blame plummeting third quarter operating earnings on their grounded Dash 8 Q400 turboprop planes. 

Operating earnings fell 41.6 percent while net profit gained 16 percent.

SAS decided to cancel flights and pull the Bombardier Dash 8 planes from the runway after a series of incidents caused by landing gear malfunctions. 

News agency AFP quotes SAS chief executive Mats Jansson as saying SAS expects a long-term solution to the problem to be in place by the second half of 2008.  He said the impact on earnings for 2007 was estimated to peak at just over US$ 100 million.

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