Chinese "Big Three" dragged Boeing to court
The Big Three of China's state-owned carriers (Air China, China Southern Airlines, and China Eastern Airlines) have decided to file a class action lawsuit against Boeing. Airlines wanted to receive material compensation through the court, because they had to suspend flights of Boeing 737 Max 8 airliners, after disaster similar aircraft Ethiopian Airlines ("Ethiopian Airlines") in March 2019.
This was reported by Bloomberg, citing its sources, clarifying that in this case, Boeing shares will fall in price. At the same time, there can be no complaints at all with Chinese air carriers, since the suspension of aircraft operation (cancellation of flights) thus disorganized the work of these companies. After all, the “Big Three” used to operate 53 such aircraft out of 96, which generally exist in China. At the same time, according to the Civil Aviation Administration of China, in 2018, these three airlines transported 65% of passengers.
Bloomberg analysts believe that the class action lawsuit makes the position of Chinese airlines in court more solid. In addition, airlines from other countries may follow the example of Chinese "comrades". Since the flights of the Boeing 737 Max 8 were suspended not only in China (although it was the first country to take such a step), but around the world and even in the United States (76 countries in total). Therefore, there is a high probability that Boeing will eventually have to "fork out." The only question is how “indecent” the amount will be, on which the quotes of Boeing shares on the stock exchange depend. Moreover, litigation can last for years.
It should be recalled that the victims of the disaster in Ethiopia were 157 people (149 passengers and 8 crew members). However, less than six months before, in October 2018, a similar disaster occurred in Indonesia. Then the victims were 189 people (181 passengers and 8 crew members), who were on board the same aircraft.
At the same time, Boeing Corporation confirmed that it was facing a serious crisis. In January - April 2019, it delivered 24% fewer aircraft than in the same period of 2017.
This was reported by Bloomberg, citing its sources, clarifying that in this case, Boeing shares will fall in price. At the same time, there can be no complaints at all with Chinese air carriers, since the suspension of aircraft operation (cancellation of flights) thus disorganized the work of these companies. After all, the “Big Three” used to operate 53 such aircraft out of 96, which generally exist in China. At the same time, according to the Civil Aviation Administration of China, in 2018, these three airlines transported 65% of passengers.
Bloomberg analysts believe that the class action lawsuit makes the position of Chinese airlines in court more solid. In addition, airlines from other countries may follow the example of Chinese "comrades". Since the flights of the Boeing 737 Max 8 were suspended not only in China (although it was the first country to take such a step), but around the world and even in the United States (76 countries in total). Therefore, there is a high probability that Boeing will eventually have to "fork out." The only question is how “indecent” the amount will be, on which the quotes of Boeing shares on the stock exchange depend. Moreover, litigation can last for years.
It should be recalled that the victims of the disaster in Ethiopia were 157 people (149 passengers and 8 crew members). However, less than six months before, in October 2018, a similar disaster occurred in Indonesia. Then the victims were 189 people (181 passengers and 8 crew members), who were on board the same aircraft.
At the same time, Boeing Corporation confirmed that it was facing a serious crisis. In January - April 2019, it delivered 24% fewer aircraft than in the same period of 2017.
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