GTN Limited (ASX: GTN) has confirmed that only 73 of 423 drones have been recovered following a “light show” incident in Melbourne last weekend.
Australia Traffic Network Pty Limited (ATN), a wholly-owned subsidiary of GTN, was conducting a drone light show in the Docklands Harbour area near the Melbourne CBD. An error occurred, which resulted in execution of built in fail safes in the drones. As a result, 423 of the 500 drones for the show landed into the water in the Docklands Harbour. Approximately 73 drones have been recovered from the water with the remainder still unaccounted for. There were no injuries and all the drones landed in the designated safe zone.
The estimated net loss to ATN is approximately $1 million as the individual drones did not carry hull insurance due to their low individual costs. However, ATN does carry liability insurance for its drone performances.
GTN said the drone business is not material to its consolidated operations with revenues of approximately $1 million in FY23.
ATN has been in contact with Civil Aviation Safety Authority (CASA), Australian Transport Safety Bureau (ATSB), and Environment Protection Authority (EPA) about the incident and their review of the matter is ongoing.
