Air China seeks Boeing compensation for 737 Max delays

Air China Ltd., one of China’s three major state-owned airlines, is joining carriers that are asking Boeing Co. for compensation for the grounding of their 737 Max jetliners following two fatal crashes.

The carrier also has asked Boeing for compensation for disruptions due to delays in delivery of new aircraft, an employee of Air China’s publicity department said Wednesday. He declined to give his name or details of the claim.

Air China, which has 15 737 Max planes, becomes the second Chinese carrier to ask Boeing for compensation following state-owned China Eastern Airlines Ltd. last month.

China was among the first governments to order carriers to suspend use of the 737 Max in March following crashes in Indonesia and Ethiopia that killed a total of 346 people.

China is, along with North America and Europe, one of the biggest global markets for jetliners. That the response of Chinese carriers and regulators to Boeing’s problems critical for the company.

Investigators suggested a flight-control system was to blame for both 737 Max crashes. Boeing says it is working on new software to get the planes back in the air.

Boeing estimates Chinese carriers will buy 7,700 jetliners over the next two decades.

The Chinese government alternates orders between Boeing and Airbus in order to maintain competition and hold down prices.

A state-owned manufacturer also is developing a Chinese competitor to the 737 and Airbus’s A320.

Source link