Boeing 737 Max 8 production halt to affect local carriers
Boeing B787-9 Dreamliners are being assembled at the Boeing Everett Factory near Seattle, Nov. 6. Boeing announced a temporary production halt of its best-selling B737 Max 8 planes, Monday. Korea Times photo by Kim Hyun-bin
By Kim Hyun-bin
Boeing's decision to temporarily halt production of its troubled B737 Max aircraft is likely to affect local carriers that were planning to bring in the jets.
On Monday local time, the world's leading aircraft manufacturer announced its plans to halt the B737 Max production, a week after the U.S. Federal Aviation Administration (FAA) said it would not approve the plane's return before 2020.
The Max was Boeing's bestselling jet but has been involved in two fatal crashes with Ethiopian Airlines in March and Indonesia's Lion Air in October last year, killing 346 people. Over 700 Max planes have been grounded worldwide.
Known for good fuel efficiency, the Max was one of the top choices for global airlines to launch short- to mid-haul flights. Korean carriers were no exception, as local airlines were scheduled to bring in 108 of the planes by 2027. Jeju Air ordered the most with 50 jets, followed by Korean Air with 30, Eastar Jet with 18 and T'way Air with 10.
Eastar Jet was the first to add two 737 Max 8s to its fleet earlier this year, but had to ground them after worries of defects. Aviation experts say even though the planes have been grounded, maintenance would cost up to 800 million won ($686,000) a month per plane. Also the carrier has to burden the wages for the additional personnel hired to operate and maintain the jets. Piles of losses have left Eastar Jet to go into emergency management.
Korean Air, the country's flagship carrier, was scheduled to bring in 30 Max planes by 2025 with an option to order 20 more. The first batch of the planes was supposed to go into operation in May, but the carrier postponed the plan until the safety issues of the jets are resolved.
“Boeing will not be receiving additional orders for the Max but our orders have been made prior to the decision, so we will be able to bring in the jets as scheduled as long as there is an approval from the FAA and Korea's Ministry of Land, Infrastructure and Transport that all safety conditions have been met,” a Korean Air official said.
The carrier said that with the delayed approval and adoption, it will have to operate other jets, such as B737-900 or B777-200, on the routes for which it initially planned to fly the Max.
Officials of Jeju Air, which ordered the largest number of Max planes, said they have no comment on the production halt at this point in time.
Jeju Air was scheduled to bring in 40 Max jets starting in 2022 with 10 additional option purchases.
The CEO of the airline earlier hinted that the company could reconsider its purchases if the approval of the jets continues to be prolonged.
“There are no changes in plans to bring in the jets. However, if the safety approval of the jets is prolonged, we will reconsider,” Jeju Air CEO Lee Seok-ju said in late October.