Profit fear as SAS grounds planes

A decision to permanently ground 27 planes over safety fears will cost SAS up to 400m crowns ($62m; ?30m), the Scandinavian airline has said.

The airline faces cancelling hundreds of flights after it decided to stop flying Bombardier Q400 turboprop planes due to landing gear problems.

The decision came after the airline's third incident involving its fleet of Canadian-made Bombardier in two months.

Shares in the airline slid as much as 7.7% on the profit warning.

"Taking these planes out of capacity will definitely impact earnings next year, although it's difficult to say to what extent, " said Jyske Bank's Michael Nielsen.

The airline operates 27 of the Q400s, which are used on many Nordic regional routes and for connections to destinations including the UK, Germany, Poland and Luxembourg.

SAS cancelled more than 40 flights on Sunday and 60 flights on Monday.

SAS said that since it began using the planes in 2000, they had accounted for about 5% of all passengers carried.

It would look to fill the gap in schedules by reallocating planes in its current fleet and by leasing aircraft, it said.

The decision to permanently stop using the aircraft followed a plane carrying 44 people from Bergen, Norway, to Copenhagen having to make an emergency landing in Denmark on Saturday.

"Confidence in the Q400 has diminished considerably and our customers are becoming increasingly doubtful about flying in this type of aircraft," chief executive Mats Jansson said over the weekend.

In September, Bombardier grounded almost half of its Q400 turboprop planes after equipment failures forced emergency landings of SAS planes in Denmark and Lithuania.

At the time of the move, the Montreal-based company said that the groundings were a "precautionary measure", adding it believed its aircraft were "absolutely safe and reliable".

The Q400 turboprop - which carries between 68 and 78 passengers - has been in use since 2000, and more than 160 of the planes have been delivered around the world.

In March, an All Nippon Airways Q400 plane carrying 56 passengers and four crew landed safely after its nose gear failed to descend. ( BBC )

Subscribe to Trend in Google News! Subscribe
Turkmenistan, Kazakhstan sign number of bilateral co-op documents
Turkmenistan, Kazakhstan sign number of bilateral co-op documents
Kazakhstan ready to significantly increase imports of Turkmen gas - President Tokayev
Kazakhstan ready to significantly increase imports of Turkmen gas - President Tokayev
Kazakhstan ready to increase trade with Turkmenistan
Kazakhstan ready to increase trade with Turkmenistan
Loading Bars
Latest
U.S. Treasury's Yellen raised 'issues of concern' with Chinese Vice Premier Liu -statement
1,353 more COVID-19 cases reported in Kazakhstan
From digital transformation to strategic priorities: Siemens talks work in Uzbekistan (Exclusive)
Chinese Xi congratulates Mirziyoyev on election as Uzbek president
Man shot inside Union Square subway station in New York
Facebook invests billions in metaverse efforts as ad business slows
Egypt not to extend years-long state of emergency: president
Spain's COVID-19 cases top 5 mln
Seven killed, 140 hurt in protests against Sudan military coup
Western ambassadors took a step back, will be more careful: Erdogan
Tesla’s market value tops $1T after Hertz orders 100K cars
6 injured, including officer, in Idaho mall shooting
Saudi Arabia outlines plans under Mideast Green Initiative
British PM tells Putin Russia-UK relationship "is not the one" London wants
Chronicles of Victory: President Ilham Aliyev interviewed by Italian Rai 1 TV channel on October 26, 2020 (PHOTO/VIDEO)
Chronicles of Victory: President Ilham Aliyev addresses the nation on October 26, 2020 (PHOTO/VIDEO)
Chronicles of Victory: October 26, 2020
Development of financial technologies in Kyrgyzstan discussed in Bishkek
Georgian PM holds videoconference with Ukrainian, Moldovan counterparts
Modernization of our country, fight against unpleasant situations must reach a completely new level - President Ilham Aliyev
We are a creator nation, and we will rebuild Gubadli - Azerbaijani president
Africa's COVID-19 cases near 8.5 mln: Africa CDC
For me, biggest reward is joy and pride in the eyes of former IDPs - Azerbaijani president
Second Karabakh war showed our strength and our national spirit - President Ilham Aliyev
After 27 years, we ended the occupation and expelled the enemy from our land - Azerbaijani president
Zangilan airport will be commissioned next year - President Aliyev
We will restore all settlements of Gubadli district, including Gubadli city - Azerbaijani president
After restoration work is completed, streets will be named after martyrs - President Aliyev
Uzbekistan’s 9M2021 imports of Turkish leather goods increase
Azerbaijan defense minister meets leadership of Turkish National Defense University (PHOTO)
Azerbaijan, NATO talk prospects for co-op in various spheres (PHOTO)
Ernst & Young reveals total revenues of Uzbekneftegaz during 1H2021
Turkey shares data on cargo shipments via its Aliaga port
Iran talks exports of its nano products to Iraq, Turkey, Afghanistan
Azerbaijan’s State Tax Service expanding use of electronic signature
Turkey discloses volume of cargo shipment via Ambarli port in 9M2021
Iran sees increase in manufacturing of several industrial, mining products
Iran's trade turnover with Azerbaijan booming - IRICA
Azerbaijan’s timber imports from Russian region revealed
Iran's Energy Exchange announces products to be on sale on October 26
Turkmenistan, Kazakhstan sign number of bilateral co-op documents
Iran’s Bahar Azadi gold coin price slightly rising
Kazakhstan ready to significantly increase imports of Turkmen gas - President Tokayev
Azerbaijan publishes latest data on mine clearance work carried out in liberated lands
Georgia records highest budget deficit in ten years
Azeronline providing companies in Azerbaijan's liberated lands with Wi-Fi
Kazakhstan ready to increase trade with Turkmenistan
Azerbaijan to open embassy in Vatican
Program of Turkish president's visit to Azerbaijan announced
Airbus rejects pressure to curb record jet output goal
Azerbaijan to export Karabakh honey to France
Azerbaijan reveals funds allocated for drawing up master plan for Gubadli city
Galt & Taggart shares data on Georgia's tourism revenues growth
US data cloud giant Snowflake opens Israel office
Chinese oil company sells stake in Azerbaijan
Turkmenistan, Kazakhstan to dock telecommunication networks at border
It'll take time for Kazakhstan to accelerate its energy transition - Rystad Energy
Iran increases export by aid of private sector
Iran to reform budget plan structure
Azerbaijan discloses timing of booster vaccination for COVID-19 infected persons
Participants of online Global Poster and Painting Competition 2021 felicitated (PHOTO)
Azerbaijani defense minister meets NATO official (PHOTO)
Output volume at Azerbaijan’s Kursangi, Garabagli fields revealed
Fitch places credit ratings of 4 Qatari banks on negative watch
Kazakhstan to raise solid waste disposal share
Uzbekistan eyes implementation of joint projects with Russia
Azerbaijan shares data on number of vaccinated citizens
Hertz orders 100,000 Tesla cars for end of 2022
Azerbaijan confirms 1,477 more COVID-19 cases, 628 recoveries
Kazakh National Bank positively assesses development dynamics in domestic real sector
Azerbaijan exceeds honey production plan
National Iranian Drilling Company unveils number of drilled oil-gas wells in country
Turkey to invest in construction of laboratory for veterinary vaccines production in Azerbaijan
Afghanistan still owes Uzbekistan for electricity, debt continues to grow
VTB Bank Azerbaijan sees drastic increase in net profit
Azerbaijani Ombudsman briefs Bulgarian delegation about crimes committed by Armenia
Azerbaijani president congratulates president of Uzbekistan
After Gubadli, we continued our victory march with dignity and raised our national flag in Shusha - President Aliyev
Georgia's import prices dropping – TBC Capital
Azercell offers a new Wi-Fi campaign!
After many years, we all experienced joy of this victory - Azerbaijani president
Present and future generations of our people will always be proud of our martyrs - President Aliyev
Kazakhstan reports increase in annual coal production volumes
Iran reveals COVID-19 data for October 25
Azerbaijan shares latest data on lending to mining industry
Galt & Taggart reveals Georgia's trade turnover statistics
It is significant and historic day in history of Gubadli district today - President Ilham Aliyev
Kazakhstan eyes completing main reconstruction work of Kostanay airport by end of 2021
SOFAZ reveals revenues from Shah Deniz, ACG
Kazakhstan, Mongolia agree to continue co-op in agro-industrial complex
Iran's East Azerbaijan province continues investments in construction projects
Iran invites investors to develop energy sector
First Vice-President Mehriban Aliyeva shares photos from Gubadli district on her Instagram page (PHOTO)
Iran seeks to curb inflation by aid of private sector
Kyrgyzstan plans to receive USD 80 mln from ADB for budget support
Kazakhstan’s National Bank changes base rate
Weekly review of trading at Turkmenistan's commodity exchange
Azerbaijan sees increase in turnover of payment cards
Kazakhstan’s National Bank reveals inflation rate for September 2021
President Ilham Aliyev and First Lady Mehriban Aliyeva meet with general public of Gubadli district (PHOTO/VIDEO)
All news