Asian airlines are cutting routes, revamping their schedules and leasing extra aircraft to fill gaps left by the grounding of Boeing 737 Max 8s after deadly crashes in Indonesia and Ethiopia killed 346 people. So far, regional carriers have managed to avoid major disruptions, but analysts expect that idling the Max 8s, a fuel-efficient update of Boeing’s popular 737, will crimp growth plans in the near future. As investigations into the crashes continue, Boeing anticipates a USD 1 billion increase in costs related to the 737 Max, including fixing software implicated in the disasters, adding pilot training and compensating airlines and families of crash victims.
Investigators are examining the role of flight-control software that pushed the planes’ noses down based on faulty sensor readings. Nearly 400 Max jets were grounded at airlines worldwide in mid-March after the Ethiopia crash. In Asia, where air passenger traffic is growing the fastest, the groundings are pushing airlines’ costs higher at a time of rising fuel prices, squeezing carriers’ profits.
