Minggu, 07 Juli 2013

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Asiana shares dip after crash landing

Plane wreckage on the runway (7 July 2013)More than 300 people were on Asiana Airlines flight which had taken off from South Korea's capital, Seoul

Shares of Asiana Airlines have fallen more than 7% in early trade in Seoul, after one of its planes crash landed in San Francisco over the weekend.

US investigators have said the Boeing 777 was "significantly below" its target speed near the runway and the pilot tried to abort the landing.

The plane with 307 people came down short of runway on Saturday, killing two people and injuring dozens.

Analysts said the incident may hurt Asiana's earnings in the near term.

"Any airline that goes through a crash landing does take a hit to its reputation in the short term," Chris De Lavigne, an aerospace analyst with consulting form Frost & Sullivan told the BBC.

"We are likely to see some people cancel their bookings and think whether it is safe to fly Asiana, until there is sufficient reassurance from the airline that it has found the root cause and sorted it out."

Mr Lavigne added that the airline may also have to face additional costs in the form of fines from the authorities and possible damages claims from some passengers.



Source: BBC News - Business http://www.bbc.co.uk/news/business-23222318#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa