Qantas Airlines Temporarily Grounds Five Bombardier Q400s

Australia's Qantas Airlines Ltd. (QAN.AU) temporarily grounded five of its 21 Bombardier-built Q400 turboprops on the weekend after conducting inspections related to recent service bulletins issued after U.K. carrier Flybe Ltd. (FBE.YY) raised concerns about the undercarriage fittings on its Q400 fleet.

Sydney-based Qantas said in a statement, dated Aug. 21, that it grounded the five short-haul planes after "inspection of a main landing-gear component." This latest issue is not related to the landing-gear problems that grounded Scandinavia's SAS Group's Q400 fleet in 2007, says a Bombardier Inc. (BBD.B.T) spokesman.

Montreal-based Bombardier issued the service bulletins in July and April related to the fittings in the turboprop's nacelle area, a streamlined enclosure that's not part of the fuselage. About 260 of the more than 300 Q400 aircraft in operation worldwide still need to be inspected, says a Bombardier spokesman. The inspections are meant to catch any corrosion, fatigue or stress before it becomes an issue.

Qantas said it began inspecting its fleet after discussions with Bombardier and after Flybe, a major operator of the aircraft, detected a cracked fitting during a regular maintenance check. A spokesman for the U.K. Civil Aviation Authority confirmed it was aware of the issue. "Flybe were performing normal maintenance checks and informed the manufacturer," the spokesman said, adding that the regulator isn't aware of any further issues.

A Flybe spokesperson told Dow Jones that "procedures, such as the checks carried out on the Q400 fleet, are standard practice throughout the industry," adding that its Q400 fleet is operating its normal schedule, with no delays or cancellations.

U.K. airlines must notify the U.K. Civil Aviation Authority of safety critical issues within 96 hours of an incident. Foreign airlines are regulated by their own home authorities.

Transport Canada was not immediately available to comment.

Qantas said it expects the component fix to take around seven days for each aircraft. As a result, QantasLink cancelled some of its Sydney-Canberra Q400 services, is operating supplementary jet flights and using larger aircraft where possible.

"The issue is not an immediate flight safety concern, but does need to be rectified before each aircraft can return to service," said Alan Joyce, Qantas' chief executive.

In 2007, SAS pulled all 27 of its Q400 fleet out of service after landing-gear-related problems led to three crash landings within seven weeks. Charlotte, N.C.-based Goodrich Corp. (GR) supplied the landing gear. A year later, Bombardier agreed to pay SAS Scandinavian compensation of around $164 million in cash and credit for future aircraft purchases. As part of the agreement, SAS agreed to order 27 aircraft, with an option for 24 more.

In Toronto Monday, Bombardier B shares are down 4 Canadian cents, or 0.9%, to C$4.52 on about 1.2 million shares. In Sydney, Qantas closed slightly lower at A$2.59 on 23.4 million shares.

-By Caroline Van Hasselt and Kaveri Niththyananthan; Dow Jones Newswires; 416-306-2023; caroline.vanhasselt@dowjones.com

Goodrich (NYSE:GR)
Historical Stock Chart
From Jun 2024 to Jul 2024