Many are cancelling flights this summer due to a lack of aircraft
IN MARCH REGULATORS around the world grounded all Boeing 737 MAX jets after two of the type crashed within five months of each other, killing 346 people. Soon afterwards Ryanair, the carrier in Europe that has placed the most orders for the new jet, insisted that the move would have little impact on its network. That was either wishful thinking or misinformation. Just three weeks later, the number of flights it had scheduled from London to Edinburgh, Britain’s busiest domestic route, fell 85%.
Across the Atlantic, 275 flights per day are now being cancelled by American and Southwest, the two airlines that operate the most MAXs in America. Both carriers hope to resume normal service in August, by which time Boeing hopes to have fixed the software bug that is suspected to have caused the two crashes. But the timeline is mere guesswork.Even if accurate, it could take Boeing much longer to get the fix approved by regulators in other countries.
In any case, its 5,000-strong orderbook for MAX jets looks vulnerable. Garuda, an Indonesian carrier, is cancelling its 49 orders. Lion Air and Ethiopian Airlines—the two carriers that have lost MAX aircraft—are unlikely to honour their 212 orders. Other big operators might use the grounding as an excuse for trimming commitments. Even airlines loyal to the manufacturer will hit Boeing with hefty compensation bills for the extra costs that they have incurred since the planes were grounded.
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