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SAS Demands 500 Million SEK From Bombardier  
User currently offlineMortyman From Norway, joined Aug 2006, 4055 posts, RR: 1
Posted (7 years 1 month 3 weeks 4 days 17 hours ago) and read 1466 times:

SAS demands that Bombardier pay the costs of the problems with their DASH 8's last month.

Bombardiers lack of control over the aircrafts, caused two serious accidents, says SAS boss Mats Jansson in Sweden.

SAS put all their 27 Dash 8 out of service.

The cost of putting all their Dash 8 out of service in order to find the cause of the problems, has come to 100's of millions of SEK, in adittion to the loss of income.

SAS will demand atleast 500 million SEK from Bombardier.


A troubled SAS is not prepared to take the cost alone.


http://e24.no/boers-og-finans/article2028644.ece

11 replies: All unread, jump to last
 
User currently offlinePrebennorholm From Denmark, joined Mar 2000, 6515 posts, RR: 54
Reply 1, posted (7 years 1 month 3 weeks 4 days 17 hours ago) and read 1466 times:

For non-Scandinavianshat's roughly USD 75 million.


Always keep your number of landings equal to your number of take-offs, Preben Norholm
User currently offlineOHLHD From Finland, joined Dec 2004, 3962 posts, RR: 25
Reply 2, posted (7 years 1 month 3 weeks 4 days 17 hours ago) and read 1466 times:

Quoting Mortyman (Thread starter):
SAS will demand atleast 500 million SEK from Bombardier.

Which is 76.7million USD btw.

Quoting Mortyman (Thread starter):
A troubled SAS is not prepared to take the cost alone.

Good so. If proven that it is not a SAS reason for the grounding I believe that is more than fair.


User currently offlineARNYEG From Sweden, joined Aug 2007, 39 posts, RR: 0
Reply 3, posted (7 years 1 month 3 weeks 4 days 17 hours ago) and read 1466 times:

SAS is gonna need that money now when they have to pay all those fines to Norwegian  dollarsign 

Should be intresting to see if Bombardier is going to pay up or if this is going to end up in court.


User currently offlineB747forever From Sweden, joined May 2007, 17126 posts, RR: 10
Reply 4, posted (7 years 1 month 3 weeks 4 days 17 hours ago) and read 1466 times:

Quoting ARNYEG (Reply 3):
Should be intresting to see if Bombardier is going to pay up or if this is going to end up in court.

Dont think that bombardier will pay this, but they have to do it if it shows that it was their fault.



Work Hard, Fly Right
User currently offlineArrow From Canada, joined Jun 2002, 2676 posts, RR: 2
Reply 5, posted (7 years 1 month 3 weeks 4 days 15 hours ago) and read 1466 times:

Quoting B747forever (Reply 4):
Dont think that bombardier will pay this, but they have to do it if it shows that it was their fault.

It will be negotiated and settled out of court -- neither will want this to go before judges. SAS will get something, unless BBD can tie a maintenance failing on them. Not likely in my opinion. Other carriers will also get some reimbursement, probably in keeping with whatever formula is worked out among them all. BBD will not want this to be a dragged out affair.



Never let the facts get in the way of a good story.
User currently offlinePrebennorholm From Denmark, joined Mar 2000, 6515 posts, RR: 54
Reply 6, posted (7 years 1 month 3 weeks 4 days 14 hours ago) and read 1466 times:

Quoting ARNYEG (Reply 3):
Should be intresting to see if Bombardier is going to pay up or if this is going to end up in court.

Sure it will end up in court. And sure SAS won't get what they claim.

Now the lawyers of both SAS and Bombardier will have a look into the details of the claims, then the judges will tell about their meanings, and then most likely some time in 2009 they will cancel the trial and make an out of court settlement on anything between 25% and 75% of the original SAS claim. Such an out of court settlement could easily be combined with new SAS orders at Bombardier and / or a buy-back agreement of (some of) the SAS Q400s.

The problem for SAS is that no matter if they get 25, 75, 100 or even 200% of their claim will it cover their real "expenses" including indirect expenses. The indirect expenses are the reluctance of the customers to fly with SAS on Q400 served routes. That's nothing new. It dates all way back to the introduction of the Q400 seven years ago since when it has demonstrated the most horrible regularity ever witnessed in modern time. Extensively covered by the daily press especially in the beginning. The accidents will of course reinforce that reluctance in the immediate future and until the Q400 for years has demonstrated excellent regularity compared to other airliners in Scandinavia.

The direct expenses haven't ended yet. The last of the 27 SAS Q400s won't be rebuilt and fit for flight until 14th, 15th or 16th October. But already early next week cancelations should be almost over. Then enough Q400s combined with all those companies "helping" SAS should be able to fly practically all SAS departures.



Always keep your number of landings equal to your number of take-offs, Preben Norholm
User currently offlineIlikeflight From United States of America, joined Mar 2006, 366 posts, RR: 1
Reply 7, posted (7 years 1 month 3 weeks 4 days 14 hours ago) and read 1466 times:

Quoting OHLHD (Reply 2):
Which is 76.7million USD btw.

Which is 80,450,607.31 for Bombardier (since they are Canadian)


Are these issues on the planes due to maintenance or a manufacture error

If it is maintenance issues than BBD shouldn't have to pay a dime



Think Different
User currently offlineArrow From Canada, joined Jun 2002, 2676 posts, RR: 2
Reply 8, posted (7 years 1 month 3 weeks 4 days 13 hours ago) and read 1466 times:

Quoting Ilikeflight (Reply 7):
Which is 80,450,607.31 for Bombardier (since they are Canadian)

You might want to check the current US/Canada dollar rate -- it's at par. Economist today predicted $US1.10 value for the loonie in another year. The longer BBD waits to pay up, the better.



Never let the facts get in the way of a good story.
User currently offlinePrebennorholm From Denmark, joined Mar 2000, 6515 posts, RR: 54
Reply 9, posted (7 years 1 month 3 weeks 4 days 13 hours ago) and read 1466 times:

Quoting Ilikeflight (Reply 7):
Are these issues on the planes due to maintenance or a manufacture error

Since all Q400s of all operators worldwide (cycle number dependant) were grounded, then there is obviously a manufacturer error issue. Whether there is also an operator error issue, we can't know yet.

The grounding was dictated by BBD and the national Canadian air safety agency which is respocible for certification of the plane. Plus by certain local air safety agencies such as the Scandinavian ones.

For details we will have to wait for the various, final accident investigation reports.

This whole issue is an unfortunnate setback for both BBD and SAS.

But now it will be settled by professional people who will fight the best they can for the interests of their respective company at daytime, and have fun drinking beer together at nighttime.

Nobody doubts that BBD designed and built the plane the best way they could. Nobody doubts that SAS tried to maintain their planes in the best shape they could.

But somewhere along that line probably several major or minor issues slipped and added up to the root cause of the accidents.

That will be solved in a professional way. Life is too short for hard feelings caused by this issue.



Always keep your number of landings equal to your number of take-offs, Preben Norholm
User currently offlineAlessandro From , joined Dec 1969, posts, RR:
Reply 10, posted (7 years 1 month 3 weeks 4 days 11 hours ago) and read 1466 times:

I thought it was 500 Million Danish crowns, a tad bit more?

User currently offlineARNYEG From Sweden, joined Aug 2007, 39 posts, RR: 0
Reply 11, posted (7 years 1 month 3 weeks 3 days 22 hours ago) and read 1466 times:

In the above link it says 500 Million SEK.

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