Originally Posted by
GlobalNav
Is it true Boeing would have to pay compensation to some airline customer(s) if more sim training is required, because of a stipulation in a sales agreement that provides a significant monetary penalty?
It doesn't matter what it sales in the sales agreement now, in reality Boeing will be paying.
Airline can just indicate it is no longer willing to fly the Max and looking to flog or return to Boeing.
Boeing could go to court but then would find itself having to defend everything that happened, the defendant able to continually file discovery motions to find what Boeing have or haven't been doing. Get that in a public court with wall to wall press coverage and they are finished. One single shortcut and airlines would have to desert them as Pax refuse to fly.
This is about confidence in the future, a single airline deserting them and handing back aircraft is a huge no confidence vote, other airlines will wonder "What do they know" with pax also asking the question.
Boeing is on the hook and no amount of press briefings and claims it is "Now" safe will make a difference. We know that Boeing costs in Q1 are $1 billion, they cannot forecast rest of year which gives you an idea of how bad it is. My initial view in another thread was $2 billion in compensation and cost, think that figure is light and likely to be closer to $10 billion and above. Customers will not order or hold off.
It is not just going to hit them just this year but the cost will be next year and likely the year after. Deepwater Horizon cost in excess of $61 billion to BP and less people died.