Caspian Grounds Boeing 737 MAX 8 After 2nd Plane Crash

Arturo Kim
March 17, 2019

Men unload a case from a diplomatic auto from the Ethiopian Embassy outside the headquarters of France's BEA air accident investigation agency in Le Bourget, north of Paris, France, March 14, 2019.

"We're closely monitoring the situation and are in constant contact with Boeing", the company said in an email. In October, a Lion Air jet crashed in Indonesia killing all 189 people on board. The possibility that the same scenario occurred in Ethiopia has prompted precautionary groundings of the plane worldwide.

Countries including the United States have grounded the Boeing 737 Max 8 as the USA -based company faces the challenge of proving the jets are safe to fly amid suspicions that faulty software might have contributed to two crashes that killed 346 people in less than six months.

A new Airlines 737 MAX 8, which was operated by Ethiopian Airlines, went down minutes into a flight from Addis Ababa to Nairobi on Sunday, killing all 157 people on board.

The doomed plane, a Boeing 737 MAX, was just four months old. The European Union Aviation Safety Agency (EASA) also grounded the 737 MAX planes. Shortly after their takeoffs, both crews tried to return to the airports but crashed.

The Guardian Nigeria reported that although the initial insurance will be covered by Ethiopian Airlines' insurers, they may seek to recover these funds from the insurers of Boeing, only if they can prove the faulty nature if the planes.

The grounding of boeing›s 737 MAX jets after the crash in Ethiopia has had no immediate financial impact on airlines using the planes, but it will get painful for the industry the longer they do not fly, companies and analysts said on Friday.

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The stock continued to struggle on Wednesday after the United States and Canada chose to join in the grounding of Boeing 737 Max jets.

Boeing is expected to finalise a software fix for that system within a week to 10 days, sources familiar with the matter said earlier on Saturday.

The United States and many other countries have grounded the Boeing 737 Max 8 as the USA -based company faces the challenge of proving the jets are safe to fly amid suspicions that faulty software might have contributed to two crashes that killed 346 people in less than six months. The country purchased the new generation aircraft in March 2018 directly from the plant headquartered in Seattle.

The airline estimated that savings on fuel and maintenance costs would make the MAX 8 aircraft 11 per cent cheaper to operate per available seat mile (CASM) than its existing Airbus A320s.

The Max is the latest upgrade to the Boeing 737s.

US authorities say information from the wreckage in Ethiopia and data on its flight path show some similarities.

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