Boeing: Regulators to meet about grounded 737 Max

Andrew Cummings
May 23, 2019

The calls for 737 MAX compensation are growing as China's three biggest airlines - Air China (OTCPK:AIRYY), China Southern (NYSE:ZNH) and China Eastern - requested payments from Boeing (NYSE:BA) for losses incurred by the grounding and delayed deliveries of 737 MAX.

A Boeing 737 MAX 8 aircraft of Air China sits on the tarmac at an airport in Beijing, China March 11, 2019.

Mcas has been linked to both the Ethiopian Airlines crash in March which killed 157 passengers and crew, and the Lion Air disaster in Indonesia at the end of October, in which 189 people perished. "The grounding causes huge losses for Chinese airlines", China aviation expert Li Xiaojin told Reuters.

Shanghai's China Eastern has 14, operated by affiliates.

According to analysts, the cost of renting a comparable aircraft is about US$1 million over three months.

The Federal Aviation Administration is gathering dozens of the world's top aviation officials in Fort Worth for a day-long conclave Thursday to talk about the Boeing 737 Max, but several of those officials say they won't commit to clearing the troubled jet to resume flights until their own safety questions are answered.

China has ordered the largest number of 737 MAX aircraft.

"We did not wait for Boeing's confessions over the existence of faults to seek the penal responsibility of the manufacturer", said Yassine Bouzrou, the lawyer of the family.

The three Chinese carriers, transporting 65 percent of the passengers in the country in 2018, are in possession of 53 of the 96 737 Max planes now grounded in the country, China Daily reported citing VariFlight, a local aviation statistics company. Boeing has acknowledged that it had to correct flaws in its simulator software used to train pilots. That the response of Chinese carriers and regulators to Boeing's problems critical for the company.

This is the second time that global airlines have asked for compensation from Boeing after the grounding of its aircraft.

Shanghai-based China Eastern has grounded its 14 MAX planes while the United States aviation giant addresses the safety risks, Xinhua reported.

Other reports by iNewsToday