ANA Reportedly Plans To Ask Rolls-Royce For 787 Engine Compensation

(RTTNews) - ANA Holdings Inc. (ANA.L, ALNPF.PK, ALNPY.PK) plans to claim compensation from engine-maker Rolls-Royce Holdings Plc following its cancellation of more than a dozen flights last month after finding broken turbines on three 787 aircraft, Bloomberg reported citing two people familiar with the matter.

The form of compensation hasn't been decided yet but it may be for discounts on future purchases or free parts, rather than in cash. The airline canceled 18 flights last month, with costs for the first nine cancellations estimated to be 55 million yen ($532,000). The report didn't disclose the value of their claims.

ANA is changing the turbine blades on all the Rolls-Royce engines in its fleet of 50 Dreamliner planes after parts broke off on two international flights and one domestic flight. The issue is ANA's biggest with the model since a 2013 global grounding of the entire Dreamliner fleet, which led the carrier to cancel flights for more than four months.

The Tokyo-based airline canceled flights last month after discovering cracking in the medium-pressure turbines of Trent 1000 engines.

ANA reportedly will ask Rolls-Royce for compensation for the canceled flights, fuel and labor costs involved in flying larger than needed planes on routes to avoid cutting flights, and parts and labor for replacing blades on the engines. It will take until the end of 2019 to replace the blades on all aircraft with improved versions that Rolls-Royce will start supplying next year, the company said last month.