Tui counts cost of Boeing 737 Max grounding

Tui counts cost of Boeing 737 Max grounding

Kerry Wise
March 30, 2019

Anglo-German tour operator TUI became the latest Boeing 737 MAX operator to warn of a hit to its profits as the USA planemaker moved to restore confidence in its best-selling model after two fatal crashes that have grounded the planes worldwide.

USA officials at the Federal Aviation Aviation (FAA) had been briefed, Reuters said, on the contents of the black box recorders, which are being analysed in Paris by French air crash investigators. A further eight 737 Max aircraft are scheduled for delivery by the end of May 2019.

All 737 MAX jets have been grounded across the world by the Federal Aviation Administration (FAA).

The planemaker said the anti-stall system, which is believed to have repeatedly forced the nose lower in at least one of the accidents, in Indonesia last October, would only do so once per event after sensing a problem, giving pilots more control.

The figure is attributed to costs for replacement aircraft, higher fuel charges, disruption and the impact on trading following the global grounding of the planes in the wake of the Ethiopian Airlines crash which killed 157 people. Boeing will also provide training for pilots on the changes that a Boeing official told reporters on Wednesday would consist of only a half hour of computer training with no time in the simulator necessary, allowing for quick implementation for the airlines.

However, the published flight manual did not reference these "unusual" situations, according to a copy from American Airlines seen by Reuters, with tragic consequences and an overall death toll of 346 lives.

Ethiopian jet crash could unlock high-stakes Boeing query
The FAA last week said it planned to mandate changes in the system to make it less likely to activate when there is no emergency. In the case of the Lion Air crash in Indonesia, it has raised questions about whether crew used the correct procedures.

According to preliminary findings by Indonesian investigators, in the Lion Air disaster in October, pilots encountered nearly the exact set of "unusual" circumstances described in the EASA document. As part of the upgrade, Boeing will install an extra warning system on all 737 Max aircraft, which was previously an optional safety feature. That may be why Boeing's shares ticked upward today in early trading.

Investigators looking into the Ethiopian Airlines crash have found a flight control feature automatically activated before the plane came down.

The FBI has also joined a criminal investigation to look into the certification of the Boeing 737 MAX 8.

Sinnett said making the software updates to each plane will take about an hour and will begin immediately.

Morningstar analyst Chris Higgins on Thursday reduced his estimate for how long the groundings would last to two months from three, based on details presented by Boeing of its proposed fix to the MCAS software.