CAA bans Boeing 737 max 8

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And the 737 cancellation wave has turned onto a tsunami,


The MAX is doomed, I tell ye, Doooomed.
As posted earlier . . . .

HOWEVER . . . . what are they going to do about the more than 400 undelivered x 737 MAX aircraft parked-up all around the production facility; and (at the end 2019), a total of 791 delivered x 737 MAX which are already with airlines - all of which it is understood have also been grounded ?!

Alternative solutions were suggested earlier . . . .

B). Re-engine the aircraft with an earlier - proven - type of engine/pylon (***), even if this is less fuel efficient?
(***) Such as the CFM International CFM56-7 series engine, successfully used on the predecessor Boeing 737 Next Generation (737NG, or 737 Next Gen), of which it is understood (at 30 November 2019), a total of 7,092 x 737NG have been ordered, and of which 7,046 have been delivered!!

This could/would be a possible immediate/mid-term solution, and possible long term/permanent solution for some . . the “737 MAX Lo”.

and/or,

D). Employ lengthened landing legs to lift the whole aircraft the required amount, that would then allow Boeing to re-mount, re-locate, the new fuel-efficient, engines more rearwards, on conventionally short(er) pylons, that bring 737 MAX CoG (centre of gravity), back to the benign, neutral, position of earlier 737 Next Gen aircraft.

This would be a long term/permanent solution . . . the “737 MAX Hi”.

Note: My consultancy fees, are VERY reasonable ;) !!

Fine.

Some might say, THAT is what they should have done in the first place, rather than "develop" the 737 MAX !! :( .

HOWEVER . . . . what are they going to do about the more than 400 x 737 MAX aircraft parked-up all around the production facility; and (at the end 2019), a total of 791 x 737 MAX which are already with airlines - all of which it is understood have also been grounded ?!

Alternative solutions were suggested earlier . . . .

B). Re-engine the aircraft with an earlier - proven - type of engine/pylon (***), even if this is less fuel efficient?
(***) Such as the CFM International CFM56-7 series engine, successfully used on the predecessor Boeing 737 Next Generation (737NG, or 737 Next Gen), of which it is understood (at 30 November 2019), a total of 7,092 x 737NG have been ordered, and of which 7,046 have been delivered!!

This could/would be a possible immediate/mid-term solution, and possible long term/permanent solution for some . . the “737 MAX Lo”.

and/or,

D). Employ lengthened landing legs to lift the whole aircraft the required amount, that would then allow Boeing to re-mount, re-locate, the new fuel-efficient, engines more rearwards, on conventionally short(er) pylons, that bring 737 MAX CoG (centre of gravity), back to the benign, neutral, position of earlier 737 Next Gen aircraft.

This would be a long term/permanent solution . . . the “737 MAX Hi”.

Note: My consultancy fees, are VERY reasonable ;) !!
 
I believe that the contracts have a clause which means the customer can duck out if there is no delivery in a year and that's where we are now.
I would imagine some airlines are breathing a huge sigh of relief as traffic levels are going to take a very long time to get back to previous levels.
The contract clause allowing customers to walk away without penalty if planes are late by more than year was in the article posted by you three posts above your post quoted here.

I should add that I expect a good many airlines will also be going through some sort of bankruptcy proceedings, allowing them to walk away from any contracts they don't like while under court supervision.

Airlines who remain solvent and still want planes will undoubtedly use Boeing's weak bargaining position to chisel down the price as Boeing becomes desperate for cash flow for themselves and their suppliers.

I won't be surprised if Boeing themselves then go bankrupt and get bailed out by the US government. The consequences of that given the current political and economic situation in the US, and the rising tide of economic protectionism are well out of scope of this thread. Those who may wish to contemplate it though will need to think in terms of which plants close and which suppliers get selectively cut out of the network of a global company.
 
The contract clause allowing customers to walk away without penalty if planes are late by more than year was in the article posted by you three posts above your post quoted here.
I knew I'd read those wise words somewhere ;-)
 
Everyone thought you were just being modest.
It is better to stay silent and be thought stupid than open your mouth and remove all doubt ;-)
 
I wonder if Boeing will close their 737 finishing plant which opened in China in Dec 2018.
Consider the following scenario:
  • Boeing declare bankruptcy.
  • The US government bail them out.
  • Some of the strings attached to the bailout include closing any and all Boeing plants in China and stop buying from Chinese suppliers.
So it probably depends on whether or not Boeing can keep their heads above water.
 
Published by: Tom Boon, Simply Flying, on 13 April 2020.

ALAFCO Sues Boeing Over 737 MAX Order Cancellation

Kuwaiti aircraft lessor ALAFCO has filed a US$336 million lawsuit against Boeing on Wednesday. The lessor believes that Boeing is in breach of contract for not returning advance payments for 40 aircraft.

We’ve recently seen several Boeing 737 MAX orders canceled. The cancelations come as the aircraft type has now been grounded for over a year following two fatal crashes. Now, according to Reuters, the Kuwait-based aircraft leasing company has taken Boeing to court over its order cancellation. The publication states that ALAFCO claims that repayments are due because of a “non-excusable delay.” Let’s take a look.

40 737 MAX orders
According to Boeing’s order book as of the 31st of March, ALAFCO has 40 737 MAX aircraft on order. The airline initially committed to 20 of the 737 MAX-8 at the Farnborough Airshow in 2012 valued at $1.9 billion at list prices. The aircraft lessor then went on to firm up this order in November of that year.

However, ALAFCO decided that it wanted more Boeing 737 MAX aircraft. At the 2017 Paris Air Show, the company doubled its 737 MAX-8 order to 40 of the aircraft. By this point in time, the list price of 20 MAX-8s had increased to $2.2 billion. In January, Simple Flying caught up with ALAFCO, or the Aviation Lease and Finance Company, at the Kuwait Air Show. A spokesperson at the time had discussed the possibility for seeking compensation.

Order cancellation
ALAFCO has now canceled its Boeing 737 MAX orders, according to Reuters. However, it has been claimed that Boeing is refusing to refund advance payments that have already been made by ALAFCO. This is the core of the new legal issue.

ALAFCO has filed a complaint at the Chicago Federal Court regarding the matter. The suit, filed for an amount of $336 million, claims that the American manufacturing giant’s refusal to return funds already paid is wrongful. It states that repayment is justified as the grounding of the Boeing 737 MAX is a “non-excusable delay.”

This isn’t the first time a court case has been brought by an aircraft lessor regarding a Boeing 737 MAX cancellation. In December we reported that Timaero Ireland Ltd was suing Boeing over a breach of contract regarding the MAX. At the time, Timaero told Reuters, “The 737 MAX aircraft contracted for between Boeing and Timaero are now either worthless or seriously diminished in value.”



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Not an 737 story, but the Boeing-Embraer Joint Venture has been dumped

Given that Boeing have just seen their sales collapse and customers are suing to get their deposits returned, they are likely looking for ways to conserve cash. Right now short term survival is more important than long term strategy, and buying 80% of Embraer would take $4.2 billion.

Oh, and I think he has cause and effect reversed with regards to Boeing's trade complaint against Bombardier. Boeing had been talking to Embraer for some time already, and Boeing's trade complaint is believed to have been motivated by a desire to make a new Boeing Embraer partnership or Embraer acquisition more financially attractive.

And as an added twist, Boeing and Bombardier had been talking about a partnership prior to that. However, they couldn't come to an agreement so Boeing matched up with Embraer instead. Ottawa then stepped in and quietly arranged for Airbus and Bombardier to talk with one another.

As for the Boeing - Embraer partnership over the Embraer C-390 Millennium military transport aircraft, that's a bit more complicated. That already existed before the proposed partnership for civil aviation. According to Boeing, that will continue. In that agreement Boeing provides sales and support services for the C-390.
Boeing and Embraer will maintain their existing Master Teaming Agreement, originally signed in 2012 and expanded in 2016, to jointly market and support the C-390 Millennium military aircraft.
Here's an FT article on it. Normally the FT is paywalled for me, but for some reason this article isn't.

According to the FT, Boeing are in serious financial trouble due to a combination of the 737 Max and COVID-19 and will need a massive bailout by the US government. They simply haven't got the money to buy an 80% stake in Embraer.
Boeing which has estimated the cost of the Max grounding at $19bn, is also under severe cash pressure as airlines cancel and defer large volumes of orders.

This had reduced the likelihood of any deal taking place, said one analyst.

“It’s a liquidity question,” said Bank of America analyst Ron Epstein. “Is Boeing in a position to spend $4bn on an acquisition given what’s going on in the broader commercial aviation market?”
According to the head of Boeing, they and their suppliers will need a $60 billion bail out by the US government.
Boeing is widely expected to receive financial support from the US government’s recent stimulus plan. The company’s chief executive Dave Calhoun has said Boeing and the wider aerospace supply chain would need $60bn to survive the current crisis.

Perhaps related to this is that Boeing have asked Canada for an extension on preparing a quote for new fighter jets. According to Boeing the reason for the delay is problems related to COVID-19. An alternative explanation may be that they don't know which parts of the company will still be in business and which product lines will continue by the time the financial restructuring is done. However that is speculation on my part.
 
An interesting appointment to the Confident Travel Initiative. When I first seen the headline I thought it was to do with the 737 Max but there is no mention of it in the article yet if any aircraft/fleet needs confidence boosted its the Max:

 
An interesting appointment to the Confident Travel Initiative. When I first seen the headline I thought it was to do with the 737 Max but there is no mention of it in the article yet if any aircraft/fleet needs confidence boosted its the Max:

It sounds like it is more relevant to the main COVID-19 thread. From what I can gather, it seems mainly oriented towards coming up with procedures for disinfecting the cabins of planes using chemicals and methods that are compatible with cabin materials to ensure that the interiors don't get knackered by overzealous cleaning with the wrong chemicals.
 
And once Boeing get that problem out of the way, they can start working on this new one.

US regulators order new fix for grounded Boeing 737 Max planes
U.S. safety officials will require all Boeing 737 Max airliners to be inspected for a manufacturing defect on engine coverings that they say could lead to loss of power during flights.

Inspections and repairs, if needed, will be required before the grounded planes are allowed to fly again, according to a notice posted Wednesday by the Federal Aviation Administration.

The problem is not related to the flight-control system that pushed planes into nosedives before two deadly Max crashes. The crashes in Indonesia and Ethiopia killed 346 people.

However, it is another blow to Boeing's safety reputation.
Long story short, when Boeing polished the carbon fibre engine nacelle panels on the 737 Max they in some cases ground off the metallic shielding layer, which could result in cockpit instruments getting faulty readings. Boeing will have to inspect all panels and replace any which are defective.
 
And once Boeing get that problem out of the way, they can start working on this new one.

US regulators order new fix for grounded Boeing 737 Max planes
Over a year ago I said Boeing should bin 737 Max as trying to fix was pouring good money after bad and it was modern DH Comet. Like HS2 they've adopted sunk cost fallacy - dismissing ''cut your losses'

I stand by that
 
Given the global downturn in aviation I bet Boeing wish they'd just dumped it now.
 
Norwegian Air have cancelled orders for 92 Boeing Max 8s, and 5 Boeing 787 Dreamliners. They are also suing Boeing over the 737 Max being grounded and for engine problems with the 787.
Norwegian Air cancels 97 Boeing MAX and Dreamliners, claims compensation

OSLO (Reuters) - Norwegian Air (NWC.OL) has cancelled orders for 97 Boeing (BA.N) aircraft and will claim compensation from the U.S. plane maker for the grounding of the 737 MAX and for 787 engine troubles that hit its bottom line, the Oslo-based carrier said on Monday.

The airline cancelled 92 of the 737 MAX jets, five 787 Dreamliners and so-called GoldCare service agreements related to both aircraft, just as Boeing on Monday began a crucial set of flight tests of the 737 MAX in an effort to gain regulatory approval for it to return to the skies.

“Norwegian has in addition filed a legal claim seeking the return of pre-delivery payments related to the aircraft and compensation for the company’s losses related to the grounding of the 737 MAX and engine issues on the 787,” the airline said.
I suspect more airlines will be doing the same.
 

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