Months after the grounding of their planes, Boeing is still feeling the heat from the 737 Max crisis as they are about to take a $5 billion hit in this quarter. According to the Aviation giant, the cost of building the planes increased by an estimated $1.7 billion as they have slowed down production, until late 2019 or early 2020 before you spot a 737 Max 8 taking off.
Mind you, earlier this month, Boeing announced that they would pay $100 million in compensation to the families of the victims involved in the crash. This is a first, Boeing has always been reluctant to disclose the cost of its compensation to its airline customers. We never knew what they paid for the grounding of the 787 Dreamliner in 2013.
Airlines have been talking about compensation from Boeing with their investors in the form reduced prices for future purchases, services and spare parts. Sounds like a good deal yeah?
Boeing also told CNN Business that it does not expect to submit a new software fix to the US Federal Aviation Administration for testing until September. Will Boeing ever get back in the air? Will other airlines adopt the 737 Max planes? Would you fly in one?
They’ve gone too far to scrap these jets, so many grounded that the company had to make space in its official parking lot to accommodate them. Let’s wait and see what the future holds.
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