After being involved in two deadly crashes, Boeing will consider reducing production or suspending the service all together.
Earlier this year, two Boeing 737 Max aircrafts crashed in Indonesia and Ethiopia killing over 300 people – despite the fatalities, production of the model continued. The aircraft was due back in the air by the end of 2019; however, US regulators have expressed concern for the safety of passengers. The planes will be temporarily halted but may potentially be suspended for the foreseeable future.
As one of the largest US exporters, the grounding of the Boeing Max is likely to affect a number of suppliers – many airlines have the planes on order, however delivery was halted so engineers could carry out vital amendments to the aircraft’s software.
If the delays continue, suppliers such as Teal Aviation Group are likely to take a hit, with over 50% of their revenue dependent on the Boeing. Southwest Airlines, Flydubai and Lion Air are also likely to be affected by the reduced production. FlyArystan has placed an order for 30 planes but is not likely to see any by the end of the year – this could have a massive impact on passengers if the airline hasn’t prepared an alternative plane.
Airlines will also incur losses for leasing additional planes to replace the Boeing as well as managing the grounded aircraft – which means they could be left out of pocket.
Matters of air travel remain uncertain after the General Election which took place on Thursday 12th December 2019. Brexit plans are still unclear with the country due to leave on 31st January and the UK’s right to fly governed by EU laws – planes could potentially be grounded in the event of a no-deal Brexit.
If you are due to travel with an airline that’s awaiting on the Boeing Max 737 aircraft, contact your airline to find out if you will be affected. The expenses incurred by airlines may have a major impact on their ability to provide alternative transport so make sure your holiday is ATOL protected – if the airline suffers financial failure your travel insurance will cover losses for pre-paid expenses.
According to the Civil Aviation Authority (CAA), the grounding of aircrafts comes under ‘extraordinary circumstance’ which means that airlines are not expected to provide compensation in the event of financial failure.
If you purchased tickets using a credit card, debit card or PayPal, you may be able to claim compensation from your card provider or bank – make sure to keep all tickets and receipts as evidence.
