The bad news that many Boeing (NYSE:BA) investors were worried about showed up during last week’s market rally like a dark cloud on a sunny day. The aerospace manufacturer, mired in a public-relations nightmare because of the international grounding of the 787 Dreamliner, was informed by All Nippon Airways that it would seek compensation for damages.
Once the Federal Aviation Administration issued the emergency air-worthiness directive, it was only a matter of time until Boeing felt a financial bite. If the aircraft remained out of operation for any substantial period of time, it would start costing carriers more than they would be willing to shrug off. Fleets have already been on the ground for weeks, and there is no clear resolution for the mysterious battery issue haunting the aircraft’s launch.
Japan Airlines, which operates seven Dreamliners, has followed suit. The company says that it expects a 700 million yen ($7.54 million) impact on its earnings for the quarter because of the groundings. All Nippon Airways hasn’t revealed what the ordeal is costing them, but the carrier owns 17 Dreamliners, suggesting that their costs are much higher.