Boeing 737 Max grounding costs hundreds of millions of dollars to airlines



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Boeing 737 Max grounding costs hundreds of millions of dollars to airlines KCAL / KCBS via CNN

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The continued stranding of the Boeing 737 Max costs the airlines hundreds of millions of dollars.

American Airlines, Southwest Airlines and European budget carrier Norwegian have all revealed this week that the inability to use the troubled aircraft would cost the combined airlines nearly $ 600 million.

Airlines do not feel affected: Boeing also said earlier this week that its profits fell 21% in the first three months of the year due to the crisis. The company did not explain the total cost of its results of the 737 Max crisis, but in a presentation to investors, it announced that it has taken charge of a charge related to solving the problems of the aircraft .

The airlines began to immobilize the 737 Max in March after the crash of one of the Ethiopian Airlines-powered aircraft, which killed all pbadengers on board. This was the second accident involving the jet model in less than six months, after another flight by Indonesian pilot Lion Air last October. The accidents killed 346 people in total.

The grounding is about to enter its second month and Boeing has not specified when a fix for the 737 Max would be deployed.

The US company, which owns 24 planes on the 737 Max, announced on Friday that it estimated that its grounding would cost $ 350 million this year. He canceled about 115 flights a day until August 19th.

Southwest, which owns more 737 Max aircraft than any other American airline, said in its earnings report Thursday that grounding and other "several unexpected events" – including the Government's judgment cost $ 200 million in the first quarter. the The low-cost airline canceled some flights that planned to use the 737 Max until August 5th.

Southwest uses exclusively Boeing 737s, but its CEO, Gary Kelly, said the composition of his fleet could change.

"This does not mean that we will be an all-737 carrier in perpetuity," he told CNBC on Thursday. Kelly also said that he is "not happy" about the grounding of the Boeing 737 Max. "Our negotiations and our relations with Boeing are something that I will discuss privately with them," he said.

European European reduction company Norwegian announced Thursday that stranding would be expensive NOK $ 500 million, or $ 58 million, in 2019.

"We had productive meetings with Boeing, during which we discussed how we can overcome the difficulties caused by the situation at MAX in Norway." Bjørn Kjos, CEO of Norway, said in a statement.

Norwegian has 18 737 Max's fleet, mainly for transatlantic flights between Europe and the east coast of the United States. The airline has ordered more than 100 of the 737 Max 8s.

He also has claimed compensation from Boeing. "It is obvious that we will not take the costs badociated with the new aircraft that we have to temporarily park," Kjos said in March. "We will send this bill to those who produce this aircraft."

It is not known how many Norwegian and other airlines could be able to receive from Boeing. This type of compensation is defined in the terms of sales contracts closely guarded between the aircraft manufacturer and its customers. For example, problems such as late delivery of aircraft may cause Boeing or its rival Airbus to compensate its customers.

Boeing CEO Dennis Muilenburg said that the company is working to improve these relationships with the airlines as it develops a fix for the 737 Max.

"We must win and regain the confidence of the flying public," he said. "This is the job that awaits us and we take it very seriously."

Chris Isidore contributed to this report.

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