Deliveries of Boeing's best-selling aircraft have been frozen by a global grounding of the jet following the crash of an Ethiopian Airlines flight on March 10, which killed all 157 people onboard.
Southwest Airlines Co said on Monday it was pulling out all Boeing Co's 737 MAX jets from its flight schedules swa.is/2FRH8Ow through June 7, extending its earlier timeline by a week.
Boeing's apology last week for two deadly crashes involving its 737 MAX model has emboldened a group of Indonesians whose relatives were killed in the first crash to sue for compensation, their lawyer said on Monday.
Luckily, despite being one of the biggest United States operators of the 737 Max, the model makes up relatively few of Southwest's revenue seat miles, a closely watched metric for airline investors, Syth says. However, Boeing said that this problem is unrelated to MCAS, and would be addressed as part of the software update.
A preliminary report released last Thursday by the Ethiopian Ministry of Transport's Aircraft Accident Investigation Bureau revealed that the American-made aircraft had a valid certificate of airworthiness, the crew were licensed and qualified to conduct the flight and the plane's takeoff appeared normal.
"Regaining the Boeing 737 Max airworthiness certificate is not just a simple software fix", Epstein warned in a client note.More news: Disney's Official "The Lion King" Trailer Has Arrived
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While the Lion Air and Ethiopian Airlines crashes have strong similarities, it is still unclear what the link between the two is. The FAA told to CBS News many carriers encountered issues with Aerodata, which is a flight planning mass and balance program.
The lawsuit was filed at U.S. District Court in Chicago, where Boeing is headquartered. It alleges that Boeing "actively concealed the nature of the automated system defects" and, in doing so, demonstrated a "conscious disregard for the lives of others".
Lawyer Michael Indrajana said that since the crash, families in Indonesia have faced a complicated and painful process against Boeing and Lion Air in their battle to get compensation. However, Morningstar said Boeing should be able to ramp up monthly production of the planes to 57 aircraft before hitting the mid-60s in the next decade.
Therefore, "we are downgrading LUV from Outperform to Market Perform due to near term earnings risk related to the grounding of the MAX fleet, which we now believe may run into the summer months".
"The history of our industry shows most accidents are caused by a chain of events".
"Safety is our responsibility, and we own it", asserted Muilenburg.