China's top airlines seek 737 MAX compensation - Air China Limited (OTCMKTS:AIRYY)

Mae Love
May 23, 2019

China is stepping up pressure on Boeing its airlines demand compensation for the grounding of 737 Max jetliners after fatal crashes in Ethiopia and Indonesia.

Beijing was the first country to ground the Boeing fleet following the Lion Air crash in Ethiopia that killed 157 people in March.

The complaint alleges Boeing failed to inform pilots properly about the risks posed by software meant to prevent the 737 Max from stalling, which repeatedly lowered the plane's nose due to a faulty sensor data, USA attorney Nomaan Husain said. On Wednesday, the Federal Aviation Administration until safety concerns are addressed.

The 737 Max was grounded in March following two crashes in five months which claimed the lives of 346 people.

Dozens of families have sued Boeing over the Lion Air crash, and several lawsuits have been lodged over the Ethiopian crash. Munoz said it would include educating customers and employees about why United feels it's safe to resume flights, making it clear to customers when they're flying on a Max and working with travelers who remain nervous about the aircraft.

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China Eastern Airlines took a similar action on Tuesday, becoming the first Chinese airline to file a compensation claim against the American aerospace company.

She went on to say that Boeing needs to recognize that "this is an aircraft". We will hire computer experts if they do not give it to us and we will ask the courts to allow us to examine their computers to see how the process has been shortened here, so that Boeing can bring this aircraft to market and compete with Airbus.

"We believe that the evidence in this case will clearly demonstrate that Boeing acted recklessly, wilfully and with conscious disregard to the safety of its passengers", their lawyer Nomaan Husain told a press conference in Paris.

In addition to USA safety regulations, Boeing's 737 Max will now also have to meet the requirements laid out by EU's aviation safety regulators in order to return to European skies. Boeing has said it completed updates to software linked to the crashes, but regulators still need to review its fix and its plans for additional pilot training.

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