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Last Updated: Thursday, 8 November 2007, 11:21 GMT
Plane problems hit profits at SAS
SAS plane makes emergency landing at Aalborg airport, Denmark - 9/9/07
SAS is going to seek compensation from the plane maker
Scandinavian airline SAS has reported a fall in quarterly profits after it grounded 27 planes over safety fears.

SAS's pre-tax profit was 536m crowns ($84.9m; 40.4m) for the third quarter, down from 785m crowns a year ago.

Last month the airline decided to stop flying Bombardier-made Dash Q400 turboprop planes because of problems with the landing gear.

SAS has suffered three crash landings by Q400s in two months, although there have been no serious injuries.

The crash landings led to hundreds of cancelled flights. SAS said the Q400 problems cost it 200m crowns in the third quarter and would reduce earnings for the full year by 600m-700m crowns.

The airline said it was in talks with Bombardier over the problems and would seek compensation.

"We are now working intensively to deploy replacement capacity in various forms," said SAS chief executive Mats Jansson.

"We expect to be able to commence implementation of a long-term solution during the second half of 2008."

SAS has said that since it began using Q400 planes in 2000, they had accounted for about 5% of all passengers carried.

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