Issue precipitates with US joining other nations in banning aircraft
With the US and Canada on Thursday joining the growing list of countries that have grounded the Boeing 737 MAX aircraft, the global airline industry is likely to take a huge financial hit.
On Thursday, Boeing said it had 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 (Federal Aviation Administration of the US) the temporary suspension of operations of the entire global fleet of 371 737 MAX aircraft.”
Meanwhile, business consulting firm Frost & Sullivan has estimated that the impact of this grounding for all the airlines together would add up to more than $10 million a day. “If the grounding applies to all aircraft, coupled with a deferral of the more than 400 deliveries planned for 2019, the bill will amount to more than $4 billion in 2019,” the study said.
