Everybody awaits the return of Boeing 737MAX
Turkish Airlines has announced it has agreed with Boeing on compensation amid MAX grounding. Boeing 737MAX is grounded since March 2019 after two fatal crashes. The American plane maker is suffering huge market denial after its flagship Narrow body product was put on the ground. Airlines with MAX orders suffered heavily due to the unavailability of aircraft which caused them losses due to cancellations of the flights. Several airlines had already told Boeing that it must compensate for the losses which were incurred due to MAX grounding.
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Turkish Airlines agreed on compensation, the total amount of this deal is not disclosed yet but a Turkish local newspaper reported it could worth a minimum of 150$ million US dollars or a maximum of 225$ million US dollars. The two fatal crashes of the Boeing 737MAX have put Boeing’s financial condition in severe distress. An estimate of 9 $ billion US dollars Boeing has suffered due to Boeing 737MAX groundings.
The year 2020 is a new hope of Boeing to get the MAX flying again. The American Aviation regulator, FAA, has already indicated that the MAX re-certification can be completed by the 2nd quarter of 2020. FAA will inspect around 400 Boeing 737MAX frames prior to their deliveries after the type certification is completed. Analysts say the full extent of the damage suffered by Boeing’s airline customers would depend on the timing of the 737 MAX’s return to service, making a settlement between the planemaker and Turkish Airlines noteworthy while the jet remains grounded.
“Either they (Turkish Airlines) have a pretty good feeling for when this will end, or the carrier has somehow lined up alternative capacity to mitigate the damage at this point,” Richard Aboulafia, vice president of analysis at aviation consulting firm Teal Group said.
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