Boeing is repeatedly claiming its planes are safe to fly, but following fatal crash of 737 MAX in Ethiopia in which all the 157 passengers on board were killed.
Airlines of several countries across the globe including Germany, Australia, France, United Kingdom, Indonesia and China have grounded the 737 MAX planes saying they won’t fly until cause of crash is known.
Meanwhile, investigation is under process of Ethiopia Airlines jet crash.
Currently there are more than three hundred 737 MAX planes in operation globally and some experts believe grounding would not be the right decision.
Melius Research analyst Carter Copeland said, “If Boeing and and the FAA feel a plane is airworthy, then why order a grounding?”
An estimate from Wall Street firms Melius Research and Jefferies reveals cost of grounding all of 737 MAX planes could be somewhere between $1 billion and $5 billion.
In 2013 Boeing urged airlines to withdraw flying 787 Dreamliners citing batteries were catching fire. However, then just fifty Dreamliners were in service and so the cost was minimal.
The company said, “Safety is Boeing’s number one priority and we have full confidence in the safety of the MAX.”
This week the company’s stock has dipped 11 percent.
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