Max grounding loss to top $500m, say China carriers

Bloomberg

Chinese airlines seeking compensation from Boeing Co said the grounding of its 737 Max jet is on track to result in losses of more than $500 million for the carriers.
The airlines could lose 4 billion yuan ($580 million) if the suspension lasts through June, Liu Shuguo, secretary general of the China Air Transport Association, said at a briefing in Beijing. Losses will continue to mount if the grounding lasts beyond that, said Liu, who spoke on behalf of the Chinese carriers the association represents.
Several Chinese airlines, including Air China Ltd and China Southern Airlines Co, are seeking compensation from the US manufacturer for order delays and losses caused by the grounding of its 737 Max jet in the wake of two deadly crashes. A total of 96 of the Chinese carriers’ 737 Max jets have been suspended, and the airlines were planning to introduce a further 130 of the planes this year, Liu said.