Boeing MAX 'Situation' Costs Airlines US$1 Billion/Month, Says Expert
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August 20, 2019 - for tradearabia.com
In March, aviation regulators and airlines around the world grounded the Boeing 737 MAX airliner after two brand new aircraft crashed in five months, killing 346 people aboard. While the decision was reasonable, it was an expensive one, said Gediminas Ziemelis, an internationally known aviation expert.
In its second quarter of 2019 results, Boeing estimated that disruptions, in relation with Boeing 737 MAX grounding will result in a $5.6 billion reduction of revenue and pre-tax earnings in the quarter. But the manufacturer wasn't the only one in a financial disaster.
Airlines, that already had Boeing 737 MAX in operation, also experienced not only financial but also logistical headaches. In total, there were 393 planes grounded, and after that airlines had to continue flying according to schedules making ACMI operators extremely popular this summer. The high demand prompted an increase in ACMI prices and one aircraft could cost over $350-400k more, Ziemelis noted.
On top of that, airlines could not just fire their staff and had to pay salaries. One plane requires 12-16 pilots and it's estimated that 12 pilots cost around $200k per month...