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China - the First Country to Announce Grounding Boeing737 Max 8 Jets after Ethiopian Air Crash

Published: Mar. 19, 2019

The Ethiopian air crash on March 10, 2019 is the second serious air crash of Boeing 737 Max 8 happened after a Lion Air flight from Indonesia went down in October, 2018. On the second day, Civil Aviation Administration of China asked all the Chinese air companies to ground the Boeing 737 Max 8 planes immediately for the sake of the security. At present, 96 737 Max 8 jets are owned by Chinese airlines in aggregate and they will be replaced by other planes.
 

More countries decided to ban 737 Max 8 planes

Even though Boeing said it has "full confidence in the safety of the 737 MAX", more countries decided to halt operation of the planes after the announcement of China. Until now, around 50 countries including Australia, France, Germany, Italy, Norway, Spain, and the United Kingdom banned the planes. The United States joined the team on March 13.
 

Who to bear the cost of grounding

With the widely grounding, a lot of air companies suffer large loss. After the halt, Norwegian Air Shuttle Company showed that they would claim for compensation with Boeing Company. It is predicted that other air companies will follow the suit.
 

Follow-up effects to airline industry

At present, some air companies like Lion Air are considering changing the orders of 737 Max 8 to other types; and some even think about canceling the orders. Meanwhile, those airlines need to adjust the operation plans. If the planes cannot resume operation before the summer peak season, more damage will be caused to the airline industry.

 

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