LATER ON SO STAY TUNED FOR THAT
BUT WE'VE GOT TO TURN BACK TO A
STORY THAT WE'VE BEEN COVERING
FOR YOU ALL DAY BOEING
ASKING 16 OF ITS CUSTOMERS,
INCLUDING SOUTHWEST AIRLINES TO
ADDRESS A POTENTIAL ISSUE
RELATED TO THE
ELECTRICAL SYSTEMS IN THE 7.37,
MAX JETS, BOEING SAID IT ONCE
THOSE CUSTOMERS TO CHECK AND
VERIFY IF A SUFFICIENT
ROUND PATH EXISTS FOR
COMPONENTS OF THE ELECTRICAL
POWER SYSTEM IN SOME AFFECTED
7.37 MAX JETS WITH SPECIFIC
TAIL NUMBERS. JOINING US NOW
IS THOMAS. WE NEED WHO IS THE
BUSINESS NEWS AND
TRANSPORTATION REPORTER AT
INSIDER TIMES GREAT TO HAVE YOU
WITH US TODAY, OKAY HELP US
BREAK DOWN WHAT THE ISSUE
ACTUALLY IS BECAUSE IF I
GROUND PATH A SUFFICIENT
GROUND PATH THAT MIGHT GO OVER
MOST OF OUR HEADS HELP US BREAK
THIS DOWN.
>> SO I'M AIRCRAFT ENGINEER,
BUT IT SEEMS TO BE JUST A MINOR
ELECTRICAL ISSUE.
SOME WIRES. WE'RE PROBABLY
INCORRECTLY INSTALLED BOEING
SAID IT FOUND THE ISSUE WITH
THE RECENTLY DELIVERED AIRCRAFT
VERY IMPORTANT TO NOTE THAT
APPEARS TO BE UNRELATED TO
FETAL. MANEUVERING AUGMENTATION
CHARACTERISTIC SYSTEM WHICH
CAUSED THE 2 FATAL CRASHES OF
THE AIRLINERS IN
2018 2019 THAT LED TO THE
CRASHES BUT THIS SEEMS TO BE A
RUN OF THE MILL.
THE ISSUE WITH THE AIRCRAFT A
LOOK AT YOUR SYSTEM EXPERTS ARE
SAYING THAT IT COULD
BE REPAIRED IN HOURS IF NOT
DAYS DEPENDING ON THE AIRLINE'S
CAPABILITIES, IT'S
IT'S NOT WORTHY OF CAUSING
ANOTHER GROUNDING AS WE SAW IN
MARCH 2019 AFTER THE ETHIOPIAN
AIRLINES CRASH. IT'S
SIGNIFICANT BECAUSE OF THE
COMPANY AND THE MAKE AND
MODEL OF.
>> THE AIRLINE OR THE AIRCRAFT
WE SHOULD SAY RATHER ITSELF AND
SO WITH THAT SIGNIFICANCE THAT
WE ALL HAVE IN THE BACK OF OUR
HEADS.
KIND OF GIVE US THE BROADER
CONTEXT HERE IS THIS SOMETHING
THAT WE'VE SEEN FROM AIRPLANE
MANUFACTURERS IN THE PAST AND
THEIR RELATIONSHIPS WITH
AIRLINES TO SAY HEY
YOU SHOULD PROBABLY GROUND
THESE AIRCRAFT THAT YOU HAVE IN
YOUR FLEET JUST TO CHECK TO
MAKE SURE THAT THIS IS FULLY
CORRECT AND OPERATING AS
INTENDED.
>> IT'S NOT THIS HAPPENS.
QUITE A BIT IN AVIATION BUT AS
YOU SAID IT'S BEEN BECAUSE ITS
BOEING
7.37 MAX THAT IT'S GRABBING
HEADLINES WE SAW IT JUST IN
FEBRUARY WITH THE PRATT AND
WHITNEY ENGINE POWER IN THE
BOEING 7, 7, 7, THAT ISSUE WAS
DUE TO THAT ENGINE AND. THE
RECOMMENDED
BE GROUNDED. BECAUSE IT WAS
ATTACHED STILL BOEING
7, 7, 7, PLANE. THEN YOU KNOW
PEOPLE GOT CONCERNED THAT MAYBE
THE AIRCRAFT MIGHT BE UNSAFE.
BUT THAT WASN'T
THE CASE. OBVIOUSLY IT'S A BAD
DAY FOR BOEING WON 7.37 MAX AND
THE WORD ISSUE IT POPS UP IN
HEADLINES, BUT THIS I DON'T
BELIEVE THIS WILL HAVE THE SAME
EFFECT AS THE MARCH
2019 GROUNDINGS.
>> OK SO THIS IS EXPECTED
AT LEAST FOR SOME AIRLINES TO
BE ABLE TO RE INSERT THEM INTO
THEIR FLEETS WITHIN
WHAT KIND OF TIMEFRAME WE
TYPICALLY BE TALKING SINCE THIS
ISN'T UNCOMMON.
IT'S IT DEPENDS IT COULD BE
HOURS DAYS EXPERTS
ARE SAYING.
>> IT DEPENDS ON THE AIRLINE
AND ITS ENGINEERING KEEP THE
ABILITY IS SO
AIRLINES THAT HAVE MORE MAX
AIRCRAFT IN THEIR FLEETS YOU
KNOW WE THINK SOUTHWEST
AIRLINES UNITED AIRLINES,
AMERICAN AIRLINES. IT'S GOING
TO TAKE THEM LONGER TO GET THE
FULL MACSWEEN UP AND RUNNING
BUT A SMALLER AIRLINE
LIKE ALASKA AIRLINE THAT ONLY
HAS 4 MAX AIRCRAFT IN THE FLEET
IT CAN TAKE THEM. A SHORTER
AMOUNT OF TIME ONCE THERE'S A
VERIFIED FIX FOR THE
PROBLEM. ANDERSON.
>> OK AND SO MOVING FORWARD
FROM HERE BECAUSE THE 7.37 MAX
AS WE WERE JUST TALKING ABOUT
WAS JUST TURNING
A CORNER. THIS IS CRITICAL THAT
THEY DO GET EVERYTHING WITH
THIS PLANE RIGHT NOT JUST FOR
THE THE LINES BUT ALSO FOR THE
PUBLIC PERCEPTION AS WELL EVEN
AS THE 7.37 MAX HAS MADE ITS
WAY BACK INTO
FLIGHT SCHEDULES. WHAT HAS THAT
PERCEPTION LOOKED LIKE AS WE
ARE SEEING THE TRAVELER THROUGH
PUT TOWARDS THE WHAT WE HOPE
IS THE END OF THIS PANDEMIC AS
WE START TO SEE SOME OF THAT
LEISURE TRAVELER THROUGHPUT
TICK BACK UP.
IT'S A GREAT QUESTION AND I
JUST
TRAVELED ON.
>> AND 3 DIFFERENT BOEING 7 37,
7 X AIRCRAFT FROM 3 DIFFERENT
CHALLENGES IN THE PAST 3
MONTHS. THEY WERE ALL
FULL FLIGHTS. PEOPLE WERE
APPEARED TO NOT BE FAZED AND
EVEN WHEN THEY WERE TOLD THAT
IT WAS A BOEING 7.37 MAX GIVE
THE EXAMPLE I FLEW
ON THE UNITED AIRLINES FOR 7.37
MAX AIRCRAFT SINCE THEN
GROUNDING IT WAS A BIG AFFAIR
FOR AVIATION ENTHUSIAST'S AND I
WAS THERE COVERING IT FOR
INSIDER. BUT WHEN PEOPLE ASK
YOU KNOW WHY IS THIS SUCH A
SPECIAL EVENT AND WE TOLD HIM
THAT IT WAS THE
7.37 MAX, MOST PEOPLE KNEW
ABOUT THE GROUNDING, BUT YOU
KNOW THEY WEREN'T JUMPING TO
REBOOK THEIR FLIGHTS THERE
WE'RE MORE THAN WILLING TO
TRAVEL ON THE AIRCRAFT
AND THERE ARE THERE'S A SEGMENT
OF THE POPULATION THAT IS STILL
SKEPTICAL ABOUT FLYING OF THE
AIRCRAFT. THEY'RE REALLY COMES
DOWN TO WHETHER OR NOT
PEOPLE LOOK TO SEE WHAT
AIRCRAFT THEY'RE FLYING ON AND
IN MY EXPERIENCE MOST PEOPLE
ARE NOT LOOKING AT WHEN THEY
ARE PURCHASING
THESE TICKETS.
>> THEY ARE VERY MUCH LOOKING
AT THE COST OF TICKETS AS WELL
THAT SEEMINGLY TAKES PRIORITY
MORE OFTEN THAN NOT BUT WE DO
KNOW THAT FOR
THIS DUOPOLY THAT IS
ESSENTIALLY IN PLACE IN THE
LARGE PLANE ORDER
WHEN WE THINK OF AIRBUS
AND BOEING ESSENTIALLY COMES
DOWN TO THEM HAS AIRBUS BEEN
ABLE TO TAKE ANY MARKET SHARE
GIVEN THAT
THESE ARE YEARS LONG ORDERS
SOME TIME TO DELIVER ON WAS
THERE ANY AND HE DID THEY EXCEL
OR WERE THEY ABLE TO CAPITALIZE
AT ALL.
>> WE LOOK AT A RECENT EXAMPLE
OF SOUTHWEST AIRLINES SO
SOUTHWEST, MISSOURI REPORTEDLY
LOOKING INTO BRINGING ON THE
AIRBUS A TO TO REPLACE ITS
BOEING 7.37 700 FLEET, NOT THE
MAX AIRCRAFT AND THE OPTION WAS
REALLY BETWEEN THE AIRBUS A TO
20 OF THE BOEING
7.37 MAX 7, THE SMALLEST A
VARIANT OF THE MAX THAT BURNED
BONE ACHES AND THE L AND
ULTIMATELY WENT WITH BOEING AND
IT. THIS EXAMPLE IS
INDICATIVE OF AIRLINES WANT A
GREAT DEAL JUST LIKE
PASSENGERS. THEY'LL.
UNDOUBTEDLY BE ABLE TO USE THIS
AS A BARGAINING CHIP WHEN THEIR
PURCHASING MORE PLANES IN THE
FUTURE SO BOEING IS LIKELY NOT
MAKING AS MUCH ON 7.37 MAX
AIRCRAFT AS IT WAS BEFORE THE
GROUNDING. BUT AIRLINES ARE
STILL WILLING TO PURCHASE THE
PLANE BECAUSE THEY'RE THEY'RE
LIKELY GOING TO GET A BETTER
DEAL NOW.
>> CERTAINLY OK AND IN TERMS OF
THE FINANCIAL IMPACT THAT THAT
BOEING HAS TAKEN OVER THAT
PERIOD OF TIME AND I DON'T WANT
TO BE SO INSENSITIVE AS TO
NOT RECOGNIZE THE PAYMENTS THAT
BOEING HAS MADE TO THE FAMILIES
AND THE VICTIMS. THE
THE VICTIMS FAMILIES A 4.9
BILLION IN A
7.37 MAX COMPENSATION TO
AIRLINES 100 MILLION DOLLARS TO
THE VICTIMS THEIR
ULTIMATELY THAT COST FOR THE
COMPANY RACKING UP TO SOMETHING
LIKE 20 BILLION DOLLARS.
I THINK IS THERE ANY FINANCIAL
IMPACT MORE BROADLY THOUGH
BECAUSE OF THE GROUNDING AND
THEN YOU LAYER ON TOP
THE PANDEMIC AND THE DECREASE
IN THE NUMBER OF TRAVELERS THAT
WE SAW OVER THE LAST YEAR.
>> OF COURSE EVERY PENNY COUNTS
RIGHT NOW TO AIRLINES THAT ARE
YOU KNOW TRYING TO GET A AND ON
THIS RECOVERY. PASSENGER GOING
UP AS YOU MENTIONED, BUT AND
THE AAP TO NUTTY FOR THEM TO
SAVE MONEY BY USING AN AIRCRAFT
AS EFFICIENT AS THE BOEING 7.37
MAX THEY'RE GOING WANT TO TAKE
ADVANTAGE THAT AND THE NOT
BEING ABLE TO RIGHT NOW BECAUSE
OF THIS YOU KNOW THE GROUNDING
OF CERTAIN AIRCRAFT IN THEIR
FLEET SO.
>> ELLEN'S ARE GOING TO
>> LOSING A BIT MORE MONEY IS
THAT GOING TO PAY MORE IN FUEL
CARS THAT THE MOVE PLANES
AROUND. BILL DEFINITELY TRY TO
RECOUP THOSE COSTS
THE NEXT TIME THEY HAVE TO MAKE
A BIG PLAY IN ORDER FROM BOEING
AND BOEING IS NOT GOING TO MAKE
AS MUCH OF A PROFIT ON THESE
PLANES AS A WOOD
HAD BEEN SMOOTH SAILING FROM
DAY ONE SO EVERYONE'S LOSING
HERE ELLEN'S HAVE SOMEWHAT OF A
RECOURSE TO RECOUP
THE COSTS WHEN THEY WHEN IT
COMES TIME TO BUY NEW PLANES
AND OF COURSE THEY COULD AS
BOTH BONE FOR CONCESSIONS AND
THINGS LIKE THAT, BUT THIS
ISN'T A GREAT TIME FOR AIRLINES
TO LOSE.