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Eliminate "Controversy" section -- move the sentence into the Boeing investigation, and change the sentence that Boeing is blaming the problem on "Software delivered to Boeing".
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On April 4, 2019, Boeing [[CEO]] [[Dennis Muilenburg]] acknowledged that MCAS played a role in both crashes. His comments came in response to public release of preliminary results of the Ethiopian Airlines accident investigation. Muilenburg stated it was "apparent that in both flights" MCAS activated due to "erroneous angle of attack information." He said the MCAS software update and additional training and information for pilots would "eliminate the possibility of unintended MCAS activation and prevent an MCAS-related accident from ever happening again".<ref name=WashPost4apr2019/> On April 24, 2019 he said the aircraft was properly designed and certificated, and he asserted "there is no technical slip or gap here". He said in the accidents there were "actions or actions not taken that contributed to the final outcome".<ref>{{cite web |last1=Frost |first1=Natasha |title=Boeing says there was "no technical slip or gap" in the 737 Max |url=https://qz.com/1603726/boeing-says-there-was-no-technical-slip-or-gap-in-the-737-max/ |website=Quartz |accessdate=5 May 2019 |date=April 24, 2019}}</ref> On April 29, he said the pilots did not "completely" follow the procedures that Boeing had outlined. He said Boeing was working to make the airplane even safer.<ref>{{Cite web|url=https://www.cnn.com/2019/04/29/investing/boeing-annual-meeting/index.html|title=Boeing CEO says 737 Max was designed properly and pilots did not 'completely' follow procedure|last=Business|first=Chris Isidore, CNN|website=CNN|access-date=2019-04-30}}</ref><ref>{{Cite web|url=https://www.businessinsider.com/boeings-ceo-on-why-737-max-pilots-not-told-of-mcas-2019-4|title=Boeing's CEO explains why the company didn't tell 737 Max pilots about the software system that contributed to 2 fatal crashes|last=Zhang|first=Benjamin|website=Business Insider|access-date=2019-04-30}}</ref>
On April 4, 2019, Boeing [[CEO]] [[Dennis Muilenburg]] acknowledged that MCAS played a role in both crashes. His comments came in response to public release of preliminary results of the Ethiopian Airlines accident investigation. Muilenburg stated it was "apparent that in both flights" MCAS activated due to "erroneous angle of attack information." He said the MCAS software update and additional training and information for pilots would "eliminate the possibility of unintended MCAS activation and prevent an MCAS-related accident from ever happening again".<ref name=WashPost4apr2019/> On April 24, 2019 he said the aircraft was properly designed and certificated, and he asserted "there is no technical slip or gap here". He said in the accidents there were "actions or actions not taken that contributed to the final outcome".<ref>{{cite web |last1=Frost |first1=Natasha |title=Boeing says there was "no technical slip or gap" in the 737 Max |url=https://qz.com/1603726/boeing-says-there-was-no-technical-slip-or-gap-in-the-737-max/ |website=Quartz |accessdate=5 May 2019 |date=April 24, 2019}}</ref> On April 29, he said the pilots did not "completely" follow the procedures that Boeing had outlined. He said Boeing was working to make the airplane even safer.<ref>{{Cite web|url=https://www.cnn.com/2019/04/29/investing/boeing-annual-meeting/index.html|title=Boeing CEO says 737 Max was designed properly and pilots did not 'completely' follow procedure|last=Business|first=Chris Isidore, CNN|website=CNN|access-date=2019-04-30}}</ref><ref>{{Cite web|url=https://www.businessinsider.com/boeings-ceo-on-why-737-max-pilots-not-told-of-mcas-2019-4|title=Boeing's CEO explains why the company didn't tell 737 Max pilots about the software system that contributed to 2 fatal crashes|last=Zhang|first=Benjamin|website=Business Insider|access-date=2019-04-30}}</ref>
On May 5, a Boeing statement said, "Neither the angle of attack indicator nor the AOA Disagree alert are necessary for the safe operation of the airplane. They provide supplemental information only, and have never been considered safety features on commercial jet transport airplanes."<ref>{{cite web |title=Boeing Statement on AOA Disagree Alert |url=https://boeing.mediaroom.com/news-releases-statements?item=130431 |website=Boeing |accessdate=7 May 2019 |date=May 5, 2019}}</ref>
On May 5, a Boeing statement said, "Neither the angle of attack indicator nor the AOA Disagree alert are necessary for the safe operation of the airplane. They provide supplemental information only, and have never been considered safety features on commercial jet transport airplanes."<ref>{{cite web |title=Boeing Statement on AOA Disagree Alert |url=https://boeing.mediaroom.com/news-releases-statements?item=130431 |website=Boeing |accessdate=7 May 2019 |date=May 5, 2019}}</ref>

⚫
On May 7, 2019 Boeing blamed the problem on "software delivered to Boeing".<ref>{{Cite web|url=https://www.theregister.co.uk/2019/05/07/boeing_blames_software_737_max_aoa_warning_captions/|title='Software delivered to Boeing' now blamed for 737 MAX warning fiasco|last=Corfield|first=Gareth|date=7 May 2019|website=www.theregister.co.uk|language=en|archive-url=|archive-date=|dead-url=|access-date=2019-05-07}}</ref>



=== Political ===
=== Political ===
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The FAA seeks consensus with other regulators to approve the return to service, to avoid suspicion of collusion with Boeing.<ref>{{cite news |url= https://aviationweek.com/commercial-aviation/faa-eyes-consensus-737-max-flight-approvals |title= FAA Eyes Consensus On 737 MAX Flight Approvals |date= Mar 25, 2019 |author= Sean Broderick |work= Aviation Week Network}}</ref>
The FAA seeks consensus with other regulators to approve the return to service, to avoid suspicion of collusion with Boeing.<ref>{{cite news |url= https://aviationweek.com/commercial-aviation/faa-eyes-consensus-737-max-flight-approvals |title= FAA Eyes Consensus On 737 MAX Flight Approvals |date= Mar 25, 2019 |author= Sean Broderick |work= Aviation Week Network}}</ref>

== Controversy ==
{{Expand section|date=May 2019}}
⚫
On May 7, 2019 it was revealed that Boeing mechanics (though not mangement) knew about the potential MCAS problems.<ref>{{Cite web|url=https://www.theregister.co.uk/2019/05/07/boeing_blames_software_737_max_aoa_warning_captions/|title='Software delivered to Boeing' now blamed for 737 MAX warning fiasco|last=Corfield|first=Gareth|date=7 May 2019|website=www.theregister.co.uk|language=en|archive-url=|archive-date=|dead-url=|access-date=2019-05-07}}</ref>


==See also==
==See also==

Revision as of 22:03, 8 May 2019

Boeing 737 MAX groundings
A Boeing 737 MAX 8 in Boeing livery
DateMarch 11, 2019 (2019-03-11) – ongoing (5 years, 6 months and 4 days)
CauseFatal crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 and efforts to fix and certify MCAS
Deaths346 in total
  • 189 on Lion Air Flight 610
  • 157 on Ethiopian Airlines Flight 302

The Boeing 737 MAX groundings came after two almost new Boeing 737 MAXs crashed within five months, causing 346 fatalities: the March 10, 2019 Ethiopian Airlines Flight 302 following the October 29, 2018 Lion Air Flight 610. Ethiopian Airlines grounded the variant immediately and was followed by the Civil Aviation Administration of China on March 11, while its certifying authority, the US FAA, supported its continuous airworthiness. In the following two days, many airlines and regulators continued to ban the MAX from flying and the US FAA followed the grounding on March 13.

Both accidents seem to be caused by a MCAS malfunction, new in the 737 MAX, pushing the aircraft nose down when it senses excessive pitch up. Based on only one angle of attack sensor, it could pitch down the aircraft when this single sensor failed. On March 17, the US DOT started an investigation of the FAA type certification process for the 737 MAX. On April 4, Boeing acknowledged the MCAS role in both accidents and is developing an update to prevent unintended MCAS activation. Airline users expect the grounding to extend through August 2019 and several asked for compensation from Boeing, lowering its financial results and stock value.

Accidents

Lion Air Flight 610 crash

Main article: Lion Air Flight 610
PK-LQP, the aircraft involved in the crash of Flight 610

On October 29, 2018, Lion Air Flight 610, a scheduled domestic flight operated by the Indonesian airline Lion Air from Soekarno–Hatta International Airport in Jakarta to Depati Amir Airport in Pangkal Pinang, crashed into the Java Sea 12 minutes after takeoff. All 189 passengers and crew were killed in the accident.[1][2][3][4] Lion Air took delivery of the airplane in August 2018.[5] The preliminary report tentatively attributed the accident to the erroneous angle of attack data and automatic nose-down trim commanded by MCAS.[6][7]

Ethiopian Airlines Flight 302 crash

Main article: Ethiopian Airlines Flight 302
ET-AVJ, the aircraft involved in the crash of Flight 302

On March 10, 2019, Ethiopian Airlines Flight 302, a scheduled international passenger flight operated by Ethiopian Airlines from Addis Ababa in Ethiopia to Jomo Kenyatta International Airport in Nairobi, Kenya, crashed six minutes after takeoff near Bishoftu, killing all 157 passengers and crew aboard the aircraft.[8][9][9][10][11] Ethiopian Airlines took delivery of the airplane in November 2018.[12]

Initial reports indicated that the Flight 302 pilot struggled to control the airplane in a manner similar to circumstances of the Lion Air crash.[13] A stabilizer trim jackscrew found in the wreckage of Ethiopian Flight 302 was set to put the aircraft into a dive.[14] Experts suggested this evidence further pointed to MCAS as at fault in the crash.[15][16] After the crash of flight ET302, Ethiopian Airlines spokesman Biniyam Demssie said in an interview that the procedures for disabling the MCAS were just previously incorporated into pilot training. "All the pilots flying the MAX received the training after the Indonesia crash," he said. "There was a directive by Boeing, so they took that training."[17] Ethiopia's transportation minister, Dagmawit Moges, said that initial data from the recovered flight data recorder of Ethiopian Flight 302 shows "clear similarities" with the crash of Lion Air Flight 610.[18]

A preliminary report on the crash indicated the pilots initially followed the correct Boeing procedure for shutting down MCAS and manually trimming the rear stabilizer. This action was ineffective. The pilots then re-enabled the MCAS and eventually lost control of the plane.[19][20] According to two aviation experts, manually trimming the rear stabilizer might have been ineffective because the manual crank will not work if the control yoke is pulled back due to aerodynamic forces that worsen with increased speed. This, however, applies to the older Boeing 737-200, and is not mentioned in the current 737 training manuals.[20] The Boeing 737 MAX manual explains that once a pilot disengages from the stabilizer trim that they should take manual control of the aircraft, but it does not say they should attempt to turn it back on.[21]

Groundings

On Monday, March 11, Ethiopian Airlines announced it grounded its 737 MAX 8 fleet "effective yesterday March 10".[22][23] The China Civil Aviation Administration ordered its airlines to suspend all flights by Monday night, based on its zero tolerance policy for any safety hazards.[24][25][26] Meanwhile, The Federal Aviation Administration (FAA) asserted the 737 MAX's "continued airworthiness" in a public notice. [27]

As dozens of airlines and regulators around the world continued in quick succession to bar the aircraft from their skies, [28] the FAA defended its position, stating it had "no basis to order grounding the aircraft" and no data from other countries to justify such action.[29][30] On Wednesday, March 13, Canada and the U.S. both reversed their policy and grounded the airplanes after receiving new information from the investigations indicating, the FAA said, the "possibility of a shared cause" for the accidents. The U.S. decision followed a high-level discussion among President Trump, key government transportation executives and the Boeing chief executive. [31][32][33] [34][35]

The U.S., Canada, and China represent a combined fleet size of 196 aircraft, nearly half of all 387 airplanes delivered at the time of grounding. [36]

Regulators

Boeing 737 MAX 8 aircraft of Shenzhen Airlines grounded at Shenzhen Bao'an International Airport in March 2019
  • March 12
    • Singapore: the Civil Aviation Authority of Singapore, "temporarily suspends" operation of all variants of the 737 MAX aircraft into and out of Singapore.[43]
    • India: Directorate General of Civil Aviation (DGCA) released a statement "DGCA has taken the decision to ground the 737 MAX aircraft immediately, pursuant to new inspections.[44]
    • Turkey: Turkish Civil Aviation Authority suspended flights of 737 MAX 8 and 9 type aircraft being operated by Turkish companies in Turkey, and stated that they are also reviewing the possibility of closing the country's airspace for the same.[45]
    • South Korea: Ministry of Land, Infrastructure and Transport (MOLIT) advised Eastar Jet, the only airline of South Korea to possess Boeing 737 MAX aircraft to ground their models,[46] and three days later issued a NOTAM (Notice to Airmen) message to block all Boeing 737 MAX models from landing and departing from all domestic airports.[47]
    • Europe: The European Union Aviation Safety Agency (EASA) suspended all flight operations of all 737-8 MAX and 737-9 MAX aeroplanes in Europe. In addition, EASA published a Safety Directive, effective as of 19:00 UTC, suspending all commercial flights performed by third-country operators into, within or out of the EU of the above mentioned models[48]
    • Canada: Minister of Transport Marc Garneau said it was premature to consider groundings and that, "If I had to fly somewhere on that type of aircraft today, I would."[49]
  • March 13
    • Canada: Minister of Transport Marc Garneau, prompted by receipt of new information,[50] said "There can't be any MAX 8 or MAX 9 flying into, out of or across Canada", effectively grounding all 737 MAX aircraft in Canadian airspace.[51]
    • United States: President Donald Trump announced on March 13, that United States authorities would ground all 737 MAX 8 and 9 aircraft in the United States.[52][53] After the President's announcement, the FAA officially ordered the grounding of all 737 MAX 8 and 9 operated by U.S. airlines or in the United States airspace.[54] Airlines were allowed to make ferry flights without passengers or flight attendants in order to reposition the aircraft in central locations.[55][56]
    • Panama: The Civil Aviation Authority grounded its aircraft.[32][33]

As a result of the Flight 302 accident on March 10, 2019, aviation authorities and airlines began grounding the Boeing 737 MAX due to safety concerns,[57] and/or closing their airspace to the Boeing 737 MAX.

Date Countries
March 11
March 12
March 13:
March 14
March 15
March 17
March 18

Airlines

After the Ethiopian Airlines crash, some airlines proactively grounded their fleets, and regulatory bodies grounded the others (includes pre-delivered aircraft located at Boeing Field, Renton Municipal Airport and Paine Field airports).[135]

Grounded 737 MAX aircraft[135]
Date Airline Fleet size
March 10 Ethiopian Airlines[144] 4
March 11 Aerolíneas Argentinas[145][146] 5
Air China 15
Cayman Airways[147] 2
China Eastern Airlines 3
China Southern Airlines 24
Comair[148] 2
Eastar Jet 2
Fuzhou Airlines 2
Garuda Indonesia 1
Gol Transportes Aéreos[149][150] 7
Hainan Airlines 11
Kunming Airlines 2
Lion Air 10
Lucky Air 3
MIAT Mongolian Airlines[151] 1
Okay Airways 2
Royal Air Maroc[152] 2
Shandong Airlines 7
Shanghai Airlines 12
Shenzhen Airlines 6
XiamenAir 10
March 12 9 Air 3
Aeroméxico[153] 6
Air Italy 4
Corendon Airlines 1
Enter Air 2
Fiji Airways 2
Flydubai[154] 15
Icelandair[155] 6
Jet Airways[156] 8
LOT Polish Airlines[157] 5
Mauritania Airlines[158] 1
Norwegian Air International[159] 9
Norwegian Air Shuttle 6
Norwegian Air Sweden 3
S7 Airlines[160] 2
SilkAir 6
Smartwings 8
Sunwing Airlines[161] 4
TUI Airways 6
TUI fly Belgium 4
TUI fly Netherlands[75] 3
TUI fly Nordic 2
Turkish Airlines[45] 14
March 13 Air Canada[162] 24
American Airlines 24
Copa Airlines[163][33] 6
Southwest Airlines 34
SCAT Airlines 1
SpiceJet[164] 13
Thai Lion Air 3
United Airlines 14
WestJet 13
March 15 Oman Air[165] 5
Unknown Samoa Airways 1
TUI fly Deutschland 1
Total 393

Impact on airborne flights

About 30 of the 737 MAX aircraft were flying in U.S. airspace when the FAA grounding order was announced. The airplanes were allowed to continue to their destinations and were then grounded.[166] In Europe, several flights were diverted when grounding orders were issued.[167][168] For example, an Israel-bound Norwegian Airlines 737 MAX aircraft returned to Stockholm, and two Turkish Airlines MAX aircraft flying to Britain, one to Gatwick Airport south of London and the other to Birmingham, turned around without landing and flew back to Turkey.[169][170]

Investigation

The U.S. Department of Transportation (DOT) Inspector General opened an investigation into FAA approval of the Boeing 737 MAX aircraft series, focusing on potential failures in the safety-review and certification process. The day after the Ethiopian Airlines crash, a federal grand jury issued a subpoena on behalf of the U.S. Justice Department for documents related to development of the 737 MAX.[171] By April, airline users of the 737 MAX announced daily flight cancellations that were expected to extend through August 2019.[172] Several airlines demanded compensation from Boeing for the cost of the groundings, while others cancelled their orders for the MAX 8. Boeing said its cost for the grounding would be as much as $1 billion in the first fiscal quarter. By March 23 the stock had lost 18% of its value.

Maneuvering Characteristics Augmentation System (MCAS)

Main article: Maneuvering Characteristics Augmentation System

The 737 MAX's newly introduced Maneuvering Characteristics Augmentation System (MCAS) came under scrutiny in both accidents. The Maneuvering Characteristics Augmentation System (MCAS) is a supplementary automated flight control system installed on the 737 MAX to provide handling qualities similar to previous Boeing 737 versions. The system quickly came under suspicion as a possible contributing cause of the Lion Air and Ethiopian Airlines crashes. In published reports, MCAS is widely termed an "anti-stall" system, a description disputed by Boeing.[173] Under certain flight conditions and without pilot action, MCAS automatically lowers the nose of the aircraft when it determines that the upward pitch of the aircraft may become too steep, based on input from sensors. The system uses airspeed, altitude and angle of attack (AoA) to determine when to activate.[174]

Both aircraft experienced extreme fluctuations in vertical speed, as shown by publicly available satellite data, and the Ethiopian airplane crashed at a steep nose-down angle. Pilots in both aircraft reported flight control problems and requested permission to return to the airport.[175][176]

On April 4, Boeing acknowledged that MCAS played a role in both accidents. After the Lion Air crash, Boeing began developing a software update to prevent the possibility of unintended MCAS activation. Boeing also said it would upgrade the cockpit display to give pilots a better indication of MCAS status and would improve pilot training materials.[177]

Certification inquiry

The day after the Ethiopian Airlines crash, a subpoena was issued by a U.S. grand jury.[178][179] On March 19, 2019, the Department of Transportation requested the Office of Inspector General to conduct an audit on the 737 MAX certification process[180] and Congress also announced an investigation into the same process.[181] The FBI has joined the criminal investigation into the certification as well.[182][183] Concerns have also been expressed in relation to FAA rules that allowed Boeing to extensively "self-certify" aircraft.[184][185]

On April 2, 2019, after receiving reports from whistleblowers regarding the training of FAA inspectors who reviewed the 737 MAX type certificate, the Senate Commerce Committee launched a second Congressional investigation; it focuses on FAA training of the inspectors.[186][187][188]

On March 17, 2019, The Seattle Times reported that an investigation it conducted raised concerns about certification of MCAS five days before the Ethiopian Airlines crash.[189] The report stated:

  • The FAA routinely delegates a degree of safety analysis to the manufacturer,[190] but some FAA insiders felt delegation of certification had gone too far. Sources at the agency said they were repeatedly pressured to delegate to Boeing, which was under pressure to compete with the Airbus A320neo family, and Boeing needed the 737 MAX to be certified quickly.
  • MCAS failure was potentially rated incorrectly as "hazardous" rather than "catastrophic". The system relied on a single sensor, an unusual and inappropriate design for the lower rating, and certainly incorrect if failure should have been rated catastrophic.
  • By the time the 737 MAX was operational, MCAS could command stabilizer deflection more than four times greater than certified. Regulators and airlines were only informed of the greatly increased capability after the Lion Air crash.
  • Safety analysis appeared to overlook that MCAS could reset itself and repeatedly pitch the aircraft down.
  • MCAS was supposed to operate only in "extreme" situations, so "Boeing decided that 737 pilots needed no extra training on the system — and indeed that they didn't even need to know about it. It was not mentioned in their flight manuals." Minimizing pilot training was a big saving for aircraft customers and "a key selling point" for the 737 MAX.[189]

On April 19, it was announced that experts from nine civil aviation authorities would investigate how MCAS was approved by the FAA, if changes need to be made in the FAA's approval process and whether the design of MCAS complies with regulations.[191]

Pilot complaints

In addition to the crashes in Indonesia and Ethiopia, Boeing 737 MAX pilots in the United States registered several complaints about the way the jet performed in flight, including reports that pilots in the United States may have experienced similar issues to what happened in the Lion Air crash.[192] Several reports were filed in the Aviation Safety Reporting System in November 2018, including one where the captain "expressed concern that some systems such as the MCAS are not fully described in the aircraft Flight Manual."[193]

On March 13, 2019, it emerged that pilots on at least two 2018 flights in the U.S. filed safety concerns after the nose of a 737 MAX pitched down suddenly when they engaged the autopilot.[194] In response, the FAA made a statement, "Some of the reports reference possible issues with the autopilot/autothrottle, which is a separate system from MCAS, and/or acknowledge the problems could have been due to pilot error."[195] MCAS only activates if the autopilot is turned off.[196] Boeing had advised pilots to disengage autopilot in nose-down incidents, though MCAS initiates nose-down in response to stall incidents.[197][198]

Boeing

A parking lot at Boeing Field in Seattle, Washington, filled with undelivered aircraft

Boeing issued a brief statement after each crash, saying it was "deeply saddened" by the loss of life and offered its "heartfelt sympathies to the families and loved ones" of the passengers and crews. It said it was helping with the Lion Air investigation and sending a technical team to assist in the Ethiopia investigation.[199][200] As non-U.S. countries and airlines began grounding the 737 MAX, Boeing stated: "at this point, based on the information available, we do not have any basis to issue new guidance to operators."[201] Boeing said "in light of" the Ethiopian Airlines crash, the company would postpone the scheduled March 13 public rollout ceremony for the first completed Boeing 777X.[202]

On March 11, Boeing announced it was working on upgrades to the MCAS flight control software, cockpit displays, operation manuals and crew training. Based on satellite tracking data, aviation experts believed MCAS may have been deployed erroneously during both crashes.[203] Boeing said the upgrades were partly in response to the first crash, Lion Air, but not to the Ethiopian Airlines crash, and were to be deployed in coming weeks and would be made mandatory by an FAA Airworthiness Directive.[204][205]

Boeing said that pilots can always use manual trim control to override software commands, and that both its Flight Crew Operations Manual and November 6 bulletin offer detailed procedures for handling incorrect angle-of-attack readings.[206][207] The FAA stated it anticipated clearing the software update by March 25, 2019, allowing Boeing to distribute it to the grounded fleets.[208] On April 1, the FAA announced the software upgrade was delayed because more work was necessary.[209] On April 11, Boeing said it had completed 96 test flights with the updated software.[210][211]

In response to the FAA grounding the MAX aircraft on March 13, Boeing said it "continues to have full confidence in the safety of the 737 MAX. However, after consultation with the U.S. Federal Aviation Administration (FAA), the U.S. National Transportation Safety Board (NTSB), and aviation authorities and its customers around the world, Boeing has determined — out of an abundance of caution and in order to reassure the flying public of the aircraft's safety — to recommend to the FAA the temporary suspension of operations of the entire global fleet of 371 737 MAX aircraft."[212]

On March 14, Boeing stated it would continue production of the 737 MAX series but was suspending deliveries to customers.[213] On April 5, the company announced it was temporarily cutting production of the 737 aircraft from 52 per month to 42 from mid-April.[214]

On April 4, 2019, Boeing CEO Dennis Muilenburg acknowledged that MCAS played a role in both crashes. His comments came in response to public release of preliminary results of the Ethiopian Airlines accident investigation. Muilenburg stated it was "apparent that in both flights" MCAS activated due to "erroneous angle of attack information." He said the MCAS software update and additional training and information for pilots would "eliminate the possibility of unintended MCAS activation and prevent an MCAS-related accident from ever happening again".[177] On April 24, 2019 he said the aircraft was properly designed and certificated, and he asserted "there is no technical slip or gap here". He said in the accidents there were "actions or actions not taken that contributed to the final outcome".[215] On April 29, he said the pilots did not "completely" follow the procedures that Boeing had outlined. He said Boeing was working to make the airplane even safer.[216][217] On May 5, a Boeing statement said, "Neither the angle of attack indicator nor the AOA Disagree alert are necessary for the safe operation of the airplane. They provide supplemental information only, and have never been considered safety features on commercial jet transport airplanes."[218]

Political

On March 11, as countries and airlines outside the U.S. began grounding their aircraft, the FAA issued a “continued airworthiness notification” to all global 737 MAX operators, stating that, to date, it had no evidence from the crashes to justify regulatory action against the aircraft.[219] Several western media outlets, including the Financial Times, New York Times, Fox News, and CNBC, questioned China's motives for grounding the aircraft by suggesting the action was either "politically motivated" or that China was "potentially benefiting from the grounding".[220][221][38][222][223] Two U.S. airline industry labor unions, the Association of Flight Attendants and the Association of Professional Flight Attendants, urged the FAA to ground the airplanes,[224] while several pilot unions, such as Southwest Airlines Pilots Association,[225] Allied Pilots Association, and Air Line Pilots Association, the largest pilot union in the world, expressed confidence in the aircraft.[226] Jim Hall, a former chairman of the National Transportation Safety Board, the U.S. agency that investigates airplane crashes, said the FAA should ground the airplane.[227] U.S. Senators Elizabeth Warren, Mitt Romney, Dianne Feinstein, Ted Cruz, Roger Wicker and Richard Blumenthal called for the FAA to temporarily ground all 737 MAX 8 jets.[228][229][230] Cruz and Wicker announced plans to hold a hearing in the Senate Commerce Subcommittee on Aviation and Space "to investigate these crashes, determine their contributing factors, and ensure that the United States aviation industry remains the safest in the world."[230] Warren accused the Trump administration of protecting Boeing, saying: "The Boeing 737 MAX 8 is a major driver of Boeing profits. In the coming weeks and months, Congress should hold hearings on whether an administration that famously refused to stand up to Saudi Arabia to protect Boeing arms sales has once again put lives at risk for the same reason."[231]

U.S. Transportation Secretary Elaine Chao, who had the authority to suspend the 737 MAX 8, said "If the FAA identifies an issue that affects safety, the department will take immediate and appropriate action."[229] On March 12, Chao and her staff flew on a Southwest Airlines 737 MAX 8 from Austin, Texas, to Washington, D.C., in an apparent act of support for Boeing.[232]

On March 12 President Trump tweeted: "Airplanes are becoming far too complex to fly. Pilots are no longer needed, but rather computer scientists from MIT. I see it all the time in many products. Always seeking to go one unnecessary step further, when often old and simpler is far better."[233] Responding to the tweet the same day, Boeing CEO Dennis Muilenburg spoke by telephone with Trump and assured him the airplane was safe.[234][235]

On March 13, Canadian Transport Minister Marc Garneau reversed his decision not to ground the aircraft and banned all 737 MAX 8/9 aircraft from Canadian airspace.[90] He earlier had said he would board a 737 MAX 8 "without hesitation",[236] and on March 12 he said that Prime Minister Justin Trudeau's government had no plans to ground the 737 MAX 8.[237] The Canadian Union of Public Employees called on Air Canada "to at a minimum continue to offer reassignment to crew members who do not want to fly on this type of airplane. The safety of passengers and crews must be the absolute priority."[237]

On March 13, with mounting pressure after the grounding of the aircraft by Canada,[53] President Trump conferred with Secretary of Transportation Elaine Chao, Acting Administrator of the FAA Daniel Elwell, and Boeing CEO Dennis Muilenburg. He then announced that the U.S. would ground the 737 MAX.[238][239] The FAA issued the official temporary grounding order the same day and said the decision was "a result of the data gathering process and new evidence collected at the site and analyzed today."[240]

The focus on the FAA renewed questions about the lack of a permanent administrator at the agency since January 2018, as well as two years of staff and budget cuts and the recent government shutdown that allegedly delayed work on the MCAS software upgrade after the Lion Air crash. The FAA responded that it is "under the strong leadership" of its acting head,[241] and Elwell said the shutdown "did not cause any delay in work on the software."[242] The 737 MAX controversy shed more light on Boeing's political influence in Washington, including lobbying efforts, donations to lawmakers and ties between government and industry.[243][244][245]

Public

A poll suggested that 53% of American adults never wanted to go on a 737 MAX plane ever again, even once the FAA and Boeing have deemed the aircraft safe.[246]

Retired airline captain Chesley "Sully" Sullenberger, who gained fame in the Miracle on the Hudson accident in 2009, sharply criticized Boeing and the FAA, saying they "have been found wanting in this ugly saga". He said the overly "cozy relationship" between the aviation industry and government was seen when the Boeing CEO "reached out to the U.S. President to try to keep the 737 Max 8 from being grounded." He also lamented understaffing and underfunding of the FAA. He said that good business means that "it is always better and cheaper to do it right instead of doing it wrong and trying to repair the damage after the fact, and when lives are lost, there is no way to repair the damage."[247]

Financial impact

Airline demands for compensation

On March 13, Norwegian Air became the first airline publicly demanding compensation from Boeing for the costs of the groundings of the 737 MAX. CEO Bjørn Kjos said, "It is quite obvious we will not take the cost related to the new aircraft that we have to park temporarily, we will send this bill to those who produce this aircraft."[248] India's SpiceJet also announced that they will seek compensation from Boeing. A senior official said, "We will seek compensation from Boeing for the grounding of the aircraft. We will also seek recompense for revenue loss and any kind of maintenance or technical overhaul that the aircraft will have to undergo. This is part of the contract, which we signed with Boeing for all the 737 MAX aircraft".[249] On April 10 state-owned China Eastern requested compensation from Boeing over the disruptions.[250]

Litigation on behalf of deceased passengers

Unlike the maximum claim by a passenger against an airline, which is limited by international treaty, claims directed against the manufacturer are not subject to a preset limit. In addition to other claims, representatives of passengers on Flight 302 may be able to argue that Boeing knew (or should have known, or contemplated) the risk of a crash, from knowledge of the MCAS and previous issues, including the earlier Lion Air crash, potentially opening a route to punitive damages.[251]

The United States has a wide ranging legal structure for damages claims that is expansive and often plaintiff-friendly. According to lawyers involved in passenger claims, Boeing may therefore attempt to argue that claims on behalf of deceased passengers should be heard in other countries.[251]

Order cancellations

At the time of the grounding, Boeing had 4,636 unfilled orders worldwide for the 737 MAX.[252] Following the grounding, Boeing suspended deliveries of 737 MAX aircraft to customers, but did not halt production of the aircraft. Analysts estimated that each month of the grounding could result in a delay of $1.8 billion in revenue to the company.[253] The total magnitude of the unfilled orders was estimated at $600 billion.[254]

The first announcement by a customer of plans to cancel an order came on March 11, the day after Ethiopian Airlines crash. Lion Air reportedly planned to drop a $22 billion order with Boeing in favor of Airbus aircraft.[255] The first confirmed cancellation was announced on March 14 when Indonesian flag carrier Garuda Indonesia announced the cancellation of 49 orders for the aircraft, citing "concerns on the safety of passengers".[256] Garuda stated that it was talking to Boeing about whether to return the single aircraft already received and to replace the 737 MAX order with a different Boeing model, not necessarily replacing Boeing as its supplier.[257] On March 22, Garuda Indonesia's spokesperson Ikhsan Rosan said "Our passengers have lost confidence to fly with the Max 8."[258][259][260]

On April 30, Airbus CEO Guillaume Faury said the 737 MAX grounding "is not changing the mid- to long-term picture" as "[Airbus is] limited by the supply chain": it should reach a monthly A320 production rate of 60 by mid-2019 before 63 in 2021 while Boeing reduced MAX monthly output to 42 from 52.[261]

Profitability and stock price

In the days following the crash of Ethiopian Airlines Flight 302 on March 10, Boeing stock price went down. By March 14 the stock lost 11% of its value.[254] By March 23 the stock had lost 18% of its value, which represented a $40 billion drop in market capitalization.[262]

On April 8, 2019, Bank of America downgraded Boeing's stock after production of the 737 MAX was reduced.[263]

On April 10 a class action lawsuit was filed against Boeing in the U.S. District Court for the Northern District of Illinois by a shareholder who accused the company of "covering up safety problems with its 737 Max".[264]

On April 24, Boeing released their first-quarter results.[265] The company announced that the grounding of the 737 MAX would cost as much as $1 billion. It consequently suspended its stock buyback program and announced that the previously released earnings forecasts, which were compiled prior to the grounding, were no longer valid and new forecasts will be released in the future.[266] Boeing also blamed the grounding for a 21% drop in quarterly profits relative to the quarterly profits from the previous year.[267]

On May 7, Barclays downgraded Boeing stock after conducting a passenger survey that showed nearly half those polled would not fly on the airplane for a year or more after it returns to service.[268]

Return to service

On April 1, 2019, the FAA said Boeing’s software fix for 737 MAX is still weeks away from delivery to FAA. This is an updated statement as Boeing previously told the public it is awaiting certification on the new software by the end of March.[269][270]

On April 24, 2019, Boeing projected that the 737 MAX would resume flying in July 2019.[271] The company claimed to have performed 96 test flights, totaling 159 hours.[272]

For fleet scheduling and flight booking purposes, Southwest and American Airlines expect the 737 MAX to remain grounded (and flights canceled) until August 2019.[172] United Airlines expected its 737 MAX's to remain grounded until July.[273] Air Canada (which initially grounded its 737 MAX's until July) pushed the resumption to August 2019.[274]

International agreements allow for aviation regulatory agencies worldwide to certify an aircraft type based on the certification of the regulatory agency where the aircraft is built, and do not review those certifications in much detail.[275] In this case the Boeing 737 MAX series is certified by the United States FAA, and a return to service locally and internationally requires updated certification by the FAA first.[275] The European Aviation Safety Agency and Transport Canada announced they will do their own safety verifications before letting the 737 MAX fly again in their territories, and will no longer accept the United States FAA certification as is for this aircraft.[275] Around March 20, 2019, Boeing announced it would make an additional safety feature on the plane model standard.[276]

The FAA seeks consensus with other regulators to approve the return to service, to avoid suspicion of collusion with Boeing.[277]

Controversy

On May 7, 2019 it was revealed that Boeing mechanics (though not mangement) knew about the potential MCAS problems.[278]

See also

References

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