Daily Management Review

Three largest Chinese airlines sue Boeing


05/22/2019


Air China, China Southern and China Eastern airlines require Boeing to pay for losses occurred because of 737 MAX 8 aircraft and transfer of ordered aircraft of this series.



Rob Bulmahn
Rob Bulmahn
According to Chinese state-owned media China Southern Airlines, China Eastern Airlines and Air China will seek payments from the US aerospace giant against the backdrop of the escalating US-Chinese trade war.

A China Eastern representative confirmed to AFP that the airline filed a Boeing compensation claim. On March 11, China became the first country to stop using 737 MAX 8 after two tragedies with these aircraft.

Xinhua News Agency reported that downtime of the Boeing 737 MAX 8 aircraft resulted in heavy losses, and these losses are still increasing. The fleet of Chinese airlines operates 96 units of 737 MAX aircraft.

The flights of the Boeing 737 Max in March 2019 were suspended worldwide, after 346 people were killed in two accidents that occurred in Indonesia and Ethiopia over the course of five months.

In early May, it became known that Boeing was aware of potential problems in the new 737 Max aircraft more than a year before the disaster in Indonesia in 2018, but chose not to report them.

Operation of the Boeing 737 Max aircraft will be resumed later than expected, the company said.

According to unnamed sources in the aircraft industry published by the Wall Street Journal and the Federal Aviation Administration of the United States (FAA), permission to resume flights of the Boeing 737 Max can only be issued at the end of this summer.

Boeing’s proposal to install the updated MCAS (Maneuvering Characteristics Augmentation System) system may be formally approved by US regulators on May 23, but the further implementation process of updating and certifying the updated system will require several months. As a result, flights of 737 Max series aircraft can be resumed only at the end of the summer season. At the end of April 2019, there were reports in the media that Boeing hoped to resume flights by mid-July.

source: wsj.com






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