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Japan Airlines expects massive losses after deadly collision at Tokyo airport

Japan Airlines said on Thursday it expects to suffer losses of more than $100 million after one of its planes collided with a Japan Coast Guard aircraft at Tokyo's Haneda Airport and burst into flames.

All 379 passengers on board JAL Flight 516 were safely evacuated after the fire broke out and took more than six hours to extinguish.

However, five of the six crew members of the small plane were killed, and the pilot survived but was seriously injured. A Japan Coast Guard plane was on its way to deliver relief supplies to earthquake-hit areas on Japan's west coast.

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The incident is being investigated by Japanese transport authorities. According to local media reports, police are investigating the possibility of professional negligence in the incident, Reuters reported.

JAL plane bursts into flames after collision at Tokyo's Haneda Airport, killing 5 people

On January 2, 2024, a Japan Airlines A350 suffered a fire at Tokyo's Haneda Airport. (Reuters/Issei Kato TPX Picture of the Day/Reuters Photo)

Records released by authorities show that minutes before the crash, air traffic control ordered the Coast Guard plane to proceed to a staging area near the runway, and that the pilot apparently read the instructions aloud as confirmation. It has been shown that

Japanese authorities said Wednesday that based on records, the passenger plane had been given permission to land, but the smaller plane had not been given permission to take off.

Coast Guard officials said the Coast Guard pilot was cleared to access the runway after the crash.

The investigation is still in its early stages.

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A view of the burnt remains of Japan Airlines Flight 516 from above

On January 3, 2024, authorities are investigating a Japan Airlines (JAL) Airbus A350 that was completely destroyed after colliding with a Japan Coast Guard aircraft at Tokyo's Haneda Airport. (Reuters/Issei Kato/Reuters Photo)

Before the accident, a notice was posted to pilots indicating that they could not use stop light strips embedded in the tarmac as a safety measure to prevent incorrect turns, Reuters reported.

Japan Airlines estimated on Thursday that the accident would result in an operating loss of about 15 billion yen ($105 million).

The company said the loss of the aircraft would be covered by insurance. According to JAL officials, the airline is also discussing compensation with individual passengers after two people lost their pets in the accident.

US insurer AIG was the lead insurer for a $130 million “all-risk” policy on the two-year-old plane that crashed, Reuters reported.

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Wreckage of Japan Airlines Flight 516

Aerial photo (taken by Kyodo News) of a Japan Airlines (JAL) Airbus A350 that burned out after colliding with a Japan Coast Guard aircraft at Tokyo's Haneda Airport on January 3, 2024. (Kyodo News/Reuters/Reuters Photo)

Japan Airlines said it was reviewing the impact of the loss on its earnings forecast for the fiscal year ending March 31.

JAL shares fell as much as 2.4% to close at 0.8% when trading resumed after the New Year holidays, according to Reuters.

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The crash and its aftermath resulted in hundreds of canceled or delayed flights at Haneda Airport.

According to Reuters, nearly 200 passengers were also stranded overnight at New Chitose Airport in Hokkaido, where JAL flight 516 departed.

Reuters contributed to this report.

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