Max scandal “has traumatized the industry” but…


Delta’s CEO Ed Bastion said yesterday that the 737Max scandal has traumatized the industry. Some would say the flying public and the relatives of the victims even more so.

His statement came with a massive BUT…Delta won’t change its buying plans, isn’t going to cancel one aircraft and still expects passengers to get on board – that’s how empty his PR spinning words really are.

The likelihood of the max returning to service before the end of the year seems to be receding every day. American Airlines has extended its no-fly into the middle of October. smaller Airlines – not the least of them the tiny arch-enemy the USB3 love to hate, Air Italy, are getting very angry and very anxious.

Boeing’s reputation hit has been massive. With Paris coming up not much happens but they’ve had two months without a single order for any aircraft type at all.

Every day is costing Boeing in terms of airline lost revenue and compensation, some of them are saying behind the scenes they either want deferments, or quiet cancellations, as a minimum. Many of them are said to be refusing credit notes against purchases and wanting cash because their bottom lines ae being hit and they don’t really want the aircraft.

So far Boeing has managed to keep comepensation and deferment talks secret – it doesn’t want anyone to know what’s happening and the last thing it needs is for airlines to start comparing what their deals are and the whole thing becoming public. That’s likely to remain the case until they reach the point they don’t agree with one or more airlines.

I suspect Boeing will bend over backwards rather than see a public spat with a major client,  but there is no doubt airlines and Boeing are on a long-haul PR spin to rehabilitate the 737Max and the company’s reputation. Paris is likely to see a huge PR blitz like we’ve rarely ever seen.