Boeing takes hit to its reputation after 2 plane crashes
More than 40 countries either grounded the planes or refused to let them into their airspace after determining that Sunday's crash of a 737 Max 8 in
The company's finances will take a hit as it faces lawsuits from victims' families, compensation claims from airlines, delayed revenue from missed plane deliveries and the expense of figuring out what went wrong and then fixing its planes.
But the airline industry has a long history of recovering from tragedy, and experts say the disaster is unlikely to have a lasting impact on
"If you look at past history of when they've had any issues with aircraft, they fix the problem and they move on," McDonald said. "It's very, very traumatic, but aviation safety is built on the blood of victims, and that's how you learn these lessons. The real challenge is to make sure you understand what the problem is before you start putting in fixes."
The groundings will have a far-reaching financial impact on
In grounding the planes in the
"
In an internal memo,
Some analysts say airline customers are unlikely to cancel orders of the plane, which are long-term agreements that can take a decade to fulfill, because those financial agreements are already in place and, other than Airbus, there aren't competitors offering an alternative to the
"The bigger and more reputational issue for them is, how do you sell more of those planes in the future?" said
While countries around the world grounded the Max 8 ahead of the
It was
"The natural conclusion is they only care about making money, they don't care about my safety," Kroon said.
AP Writer
Boeing pauses MAX 8 deliveries as investors wait for more news
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