The journey hasn’t been rosy for Boeing since after they recorded the second crash of a Boeing 737 Max 4 months after the first one crashed.
Boeing 737 max owned by Lion Air crashed on October 29, 2018, and that of Ethiopian Airlines on March 10, 2019. All aboard the plane lost their lives in both crashes.
Since after these two crashes, Boeing found themselves in a particularly difficult situation. The 737 MAX is the company’s fastest-selling aircraft, with more than 5,000 sold. These models of plans are now grounded.
It did not just end there; families of 737 MAX crash victims are increasingly filing lawsuits against Boeing. Two new lawsuits were filed in the U.S. District Court on Wednesday, and many more will surely be filed in the coming weeks.
Says attorney Steve Marks, whose firm is representing families of 20 victims of the Lion Air crash, “There is no question that Boeing is responsible for these accidents, and the only question is the degree of culpability.”
In addition, airline Garuda Indonesia announced that it sent a letter to Boeing requesting cancellation of its order for 49 Boeing 737 MAX aircraft. According to an airline spokesperson, “Our passengers have lost confidence to fly with the MAX 8.” The deal is valued at approximately $4.9 billion.
And Boeing may also be sued by the airlines that are losing money due to their grounded 737 MAX airplanes. In the U.S. alone, the three airlines flying 737 MAX aircraft — Southwest, American, and United — have had to ground a total of 72 airplanes, wreaking havoc on schedules and stranding passengers.
There’s clearly major financial turbulence ahead for Boeing. While a fix to the 737 MAX aircraft should get the planes flying again, the company is going to be in court for years to come. Hopefully Boeing has some very deep pockets — it’s going to need them.