Boeing 737 Max grounding hits American Airlines outlook

Boeing 737 Max 8 jets built for American Airlines left and Air Canada are parked at the airport adjacent to a Boeing Co. production facility in Renton Wash. Orders and deliveries of Boeing's 737 M

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The Bureau of Enquiry and Analysis for Civil Aviation Safety published a preliminary report into the crash of Ethiopian Airlines Flight 302, finding that the pilots were unable to regain control of the Boeing 737 MAX 8 aircraft despite following Boeing's safety procedures after the plane's automated flight control systems repeatedly activated due to a faulty sensor.

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.

"We are in close communications with Boeing, and there is no change on the orders for the moment". There were no new Max orders in March, the company said.

Boeing is the world's largest aerospace company, building military and commercial aircraft, missiles, satellites and other space technology.

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Boeing has conceded that new software added to the MAX and called MCAS was involved in both crashes but questions have also been raised about the actions of the flight crews.

"Currently, all the aircraft leasing contracts are implemented normally".

At Boeing, Muilenburg said a software fix is on the way.

American Airlines' share price fell by 2.8% to $32.94 in early trading.

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Smaller rival Southwest Airlines Co. was the first USA airline to formally cut its financial outlook for the year after being forced to pull its new fleet of 34 Boeing 737 MAX planes out of service.

American said all its 737-800 aircraft will be back in service by the end of April, but the carrier will continue to cancel about 90 flights per day through June 5 as the 737 MAX remains grounded.

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. They've been grounded since the second crash in mid-March.

"Boeing's CEO explicitly apologised to 346 passenger families", said Merdian Agustin, whose husband died in the crash. We have the responsibility to eliminate this risk, and we know how to do it.

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