Disasters drag down Boeing's deliveries of new jets

Disasters drag down Boeing's deliveries of new jets

American Airlines Group Inc. on April 9 trimmed its first-quarter revenue forecast after canceling more than 2,000 flights due to the global grounding of Boeing 737 MAX jets and problems with overhead bins in cabins of another Boeing jet that the airline was retrofitting.

The securities fraud violations lawsuit, filed by shareholder Richard Seeks, alleges that Boeing rushed out the 737 Max model to compete with European rival Airbus while neglecting to include "extra" or "optional" features which may have prevented the crashes, according to the filing, as reported by Reuters. Boeing hasn't disclosed any lost orders, although Garuda Indonesia has said it will cancel an order for 49 Max jets.

At a news conference organised by Jakarta law firm Kailimang and Ponto, families of 11 Lion Air victims said they are joining dozens of other Indonesian families in filing lawsuits against Boeing.

A statement by Boeing on Tuesday said that the major programme deliveries during the period included deliveries under operating lease.

"Currently, all the aircraft leasing contracts are implemented normally". The 737 Max is considered the fastest-selling model in the history of Boeing, with about 5,000 orders from more than 100 customers worldwide.

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Ninety-six Boeing 737 Max aircraft have been grounded in China and the country was the first to take the aircraft off commercial flights following the two crashes.

737 MAX deliveries accounted for the highest totals in the first quarter for Boeing, which is lowering the aircraft's monthly production rate from 52 to 42 airplanes per month starting in mid-April.

Boeing's shares were down 1.4 per cent at $369.50 in afternoon trading. A total of 346 passengers and crew died in the crashes.

A report into the March 10 Ethiopian crash showed the aircraft was subject to repeated nose down commands and that the pilots followed at least some of the procedures highlighted by Boeing and the FAA after the Lion Air crash to render MCAS ineffective. Critics have raised questions about oversight provided by the US Federal Aviation Administration and its decision to certify the 737 Max safe for commercial use.

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