Nanjack From United States of America, joined Jun 2006, 2 posts, RR: 0 Posted (6 years 11 months 2 weeks 6 days 13 hours ago) and read 2916 times:
After doing extensive research on the net trying to find the answer to this I stumbled across this forum. I figured all the smart people here could probably answer this off the top of their head. I am wondering what happens to any major airline after an accident in terms of cost/revenue. In my case there are no fatalities, just minor injuries, but the MD-11 was destroyed.
Because I wait till the last minute to do my homework, I have an assignment due tomorrow that I have some questions about. It is amazing that after 20 years of school, I never had a finance class. The time has come where I need to do a cost estimate. I am wondering if there are things that I must include in the estimate, or if someone could point me to an example that would be great.
I feel like I am spinning my wheels here and any help would be appreciated....especially if anyone has some insight on the FedEx accident that occurred in Newark, NJ in 1997.....
Newark777 From United States of America, joined Dec 2004, 9348 posts, RR: 33 Reply 1, posted (6 years 11 months 2 weeks 6 days 12 hours ago) and read 2906 times:
I would assume they would have insurance. Then, there is the whole issue that many airlines don't actually own their aircrafts.
Quoting Nanjack (Thread starter):
I feel like I am spinning my wheels here and any help would be appreciated....especially if anyone has some insight on the FedEx accident that occurred in Newark, NJ in 1997.....
You mean in financial terms? Here's the NTSB report to get you started:
Nanjack From United States of America, joined Jun 2006, 2 posts, RR: 0 Reply 2, posted (6 years 11 months 2 weeks 6 days 12 hours ago) and read 2901 times:
Thanks for the help. I have that accident report memorized already
Avioniker From United States of America, joined Dec 2001, 1109 posts, RR: 11 Reply 3, posted (6 years 11 months 2 weeks 6 days 3 hours ago) and read 2835 times:
Quite often when an airline owns the plane they must absorb the cost of the loss. A number of companies are "self insured".
If the aircraft is leased (from ILFC or GECAS for instance) then normally they require the aircraft to be insured by an independant third party.
In the case of FEDEX I have no idea.
One may educate the ignorance from the unknowing but stupid is forever. Boswell; ca: 1533
777WT From United States of America, joined Jan 2005, 874 posts, RR: 1 Reply 4, posted (6 years 11 months 2 weeks 4 days 22 hours ago) and read 2705 times:
FWIW AA profited off the crash of Flight 191. They had the aircraft fully insured for replacement.
Dan2002 From United States of America, joined Dec 2002, 2055 posts, RR: 5 Reply 5, posted (6 years 11 months 2 weeks 4 days 20 hours ago) and read 2682 times:
Quoting 777WT (Reply 4): FWIW AA profited off the crash of Flight 191. They had the aircraft fully insured for replacement.
They didn't profit off of the crash. They didn't only lose an AC, they gained alot of bad publicity, as did the DC-10.
A guy asks 'What's Punk?'. I kick over a trash can and its punk. He knocks over a trash can and its trendy.
Saturn5 From United States of America, joined Apr 2006, 313 posts, RR: 0 Reply 7, posted (6 years 11 months 2 weeks 4 days 14 hours ago) and read 2608 times:
Quoting Avioniker (Reply 3): A number of companies are "self insured".
I imagine they can only have this option for the "hull loss" otherwise they must at least carry a liability insurancy for their passengers.
777WT From United States of America, joined Jan 2005, 874 posts, RR: 1 Reply 8, posted (6 years 11 months 2 weeks 4 days 10 hours ago) and read 2573 times:
Quoting Dan2002 (Reply 5): They didn't profit off of the crash. They didn't only lose an AC, they gained alot of bad publicity, as did the DC-10.
Have a look at the DVD from the History Channel "The crash of Flight 191"
In it it showed the paperwork the investigators found at a storage building in Queens, NY.
Ran the numbers through the paperwork and they thought it got to be a mistake, after doing it for the 3rd time it wasn't no mistake. Because all the numbers added didn't show loss, it showed profit.
This investigation was to find out how much AA lost financially as a result from flight 191.
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