Bombardier shares slide after SAS grounds Q400 turboprops
Last Updated: Monday, October 29, 2007 | 4:15 PM ET
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Shares of Bombardier slipped on the TSX on Monday, a day after Scandinavian Airlines System permanently stopped flying the company's Q400 turboprops.
Bombardier shares fell 19 cents, or more than 3 per cent, ending at $5.34 on the TSX.
The flag carrier of Sweden, Denmark and Norway, SAS made the decision the day after an SAS turboprop — also known as the Dash 8 Q400 — crash-landed with 44 people on board in Denmark when part of its landing gear collapsed.
The crash was the third such incident involving a SAS Q400 in seven weeks.
SAS said Monday that its decision to stop using its 27-plane Q400 fleet will cost it between $45 million and $60 million for the remaining part of the year.
The airline had earlier sought about $75 million in compensation from Bombardier for the costs and lost income over the previous grounding of its Q400 aircraft.
SAS grounded its fleet of Q400s after two accidents in September related to landing gear failure. After three weeks of inspections, the planes began going back into service in early October.
Also on Monday, the European Aviation Safety Agency said it has called for an "immediate crisis" meeting with Bombardier and Transport Canada to discuss the plane's airworthiness.
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