An Air China Boeing 747 in Beijing international airport in 2017.
Zhang Peng/LightRocket via Getty Images
  • Air China and two other Chinese airlines are demanding compensation from Boeing over its 737 Max crisis.
  • The airlines are looking for compensation over losses made after the grounding of 737 Max planes in the aftermath of two fatal crashes, and delayed deliveries of more Max planes.
  • They join a growing list of airlines looking for compensation or amending orders as Boeing's crisis continues, even as some carriers continue to express support for the manufacturer.
  • For more, go to Business Insider SA.

Air China and two more of China's largest airlines have become the latest carriers to look for compensation from Boeing as the 737 Max plane remains grounded around the world following two fatal crashes.

Air China, China Southern Airlines, and China Eastern Airlines have requested compensation from Boeing for the losses that have resulted from the grounding of their Max planes and the delayed deliveries of more of the plane model, Reuters reported, citing Chinese state TV.

They join a growing list of airlines that have reacted to the crashes or the wait for Boeing the plane to return to service by cancelling or amending orders, or looking for compensation.

Here is the full list:

  • Air China, China Southern Airlines, and China Eastern Airlines: The airlines are asking for compensation for losses after the grounding of the planes and delayed deliveries of new Max planes
  • Ryanair: The budget airline's CEO said he wants compensation for the delays, but said his company still has confidence in Boeing.
  • Turkish Airlines: The airline's chairman said he expects compensation from Boeing and would talk with the manufacturer about its orders.
  • FlyDubai: FlyDubai's chairman said in April that the airline has the "right" to ask for compensation and could replace its order for Max jets with an order from Airbus, Boeing's European rival, amid uncertainty over when the Max will fly again.
  • Norwegian Air: Norwegian said in March that it was seeking compensation from Boeing for its grounded fleets.
  • Southwest: Gary Kelly, Southwest's chief executive, said the airline would talk to Boeing "privately" about arrangements, The Financial Times reported, though he told Bloomberg that it was "premature" to talk about what compensation it was seeking.
  • United Airlines: United's chief financial officer said in April that the airline would discuss compensation with Boeing over the grounding of the planes.
  • Garuda: Indonesia's flagship airline asked to cancel a $5 billion (R71 billion) order for 737 Max planes because passengers "lost trust and no longer have the confidence" in the plane.

Boeing's Max planes were grounded around the world after an Ethiopian Airlines plane crashed in March, killing all 157 people on board. The plane was the second Max to crash in less than five months, following a Lion Air plane that crashed in Indonesia killing the 189 people on board in October 2018.

Boeing has completed a software update for the Max, which will undergo scrutiny from the US Federal Aviation Administration and regulators around the world before the plane can return to the skies.

But the groundings, delayed deliveries of new Max planes, and continuing uncertainty over when the plane will be able to return to service has led airlines to cancel months of flights and warn of hits to their profits.

European and US airlines have warned that they will lose hundreds of millions of dollars over the crisis. Southwest, which has the largest 737 Max fleet in the world, said it lost $200 million in the first three months of 2019 due to cancellations caused by the grounding of the plane and the government shutdown.

The aftermath of the Ethiopian Airlines Boeing 737 Max crash.
Xinhua/ via Getty Images

The crisis cost Boeing itself $1 billion (R14 billion) in the first quarter of 2019, and it also faces lawsuits from victims' families and from shareholders and federal investigations into how the plane got certified in addition to the airlines' demands.

Boeing has promised that the plane will be one of the "safest ever to fly" when it returns to service and that the company will "earn and re-earn" flyers' trust. It said that it is working closely regulators and with airlines and pilots to provide additional training.

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