Three major Chinese Airlines turn to Boeing for 737 MAX compensation

According to Chinese state media reports, Air China, China Eastern and China Southern, the country’s largest three airlines, have all submitted formal requests to Boeing for compensation as a consequence of the grounding of all 737 MAX jets worldwide. Following the second of two fatal crashes involving the MAX jet which had displayed similar problems to the first, China’s regulator was the first to order the grounding of all Chinese airline-owned 737 MAX jets.

Currently China Southern Airlines has 24 grounded 737 MAX jets, while it also has orders for 56 more, though delivery of these will now be delayed owing to the halting of all deliveries until the aircraft is deemed airworthy again by the U.S. Federal Aviation Authority (FAA). Air China has 15 grounded 737 MAXs with a further 30 on order, while China Eastern Airlines has 3 grounded MAX jets and a further 36 on order. In addition to compensation for the grounded jets, it is understood that compensation will also be sought for delays to the delivery of ordered jets.

Last week Boeing confirmed it had completed development of the software update to the 737 MAX, just in time for the aviation regulators summit which is taking place in Texas this Thursday, May 23, at which the FAA is expected to deliver an update on the reviews of the software fix and new pilot training. 57 agencies from 33 countries, including China, France, Germany and the U.K., as well as the European Union Aviation Safety Agency will be attending the summit. However, as yet, there is no indication whether the grounded 737 MAX jets will be flying again in time for the traditionally busy summer period.