It has now been more than 3 months since the 737 Max grounding by aeronautical authorities around the world. Here is a breakdown of our estimated insurance claim on Boeing’s Products Liability policy and its Grounding Liability Coverage: Average flights per aircraft per day: 5 Average passenger seating: 150 Average revenue per passenger: $180 Total…
Boeing appears to be close to bringing the Max back into service. The software changes have been tested. Here are 2 significant impacts of the Max saga in the Aircraft Insurance industry: The Max Replacement The impact on the Boeing company has been tremendous, reportedly up to $1B in outlook changes, not counting the costs…
No need to go into the specifics, for any interested party on the 737-Max saga we know that it is the result of overextending a 50 year design to appease investors, customers, and other stockholders. The Max grounding is now crossing it’s 1 month anniversary. In a previous post we calculated the Aircraft Insurance claim…
The 737 Max saga continues. The media has been merciless with the manufacturer, articles such as this one are clearly biased against Boeing: https://www.bbc.com/news/business-47812225 Are they wrong about Boeing’s role in the 2 tragedies? Not entirerly. However perspective needs to be included if you are making a fair report. Why has the 737 stubbornly remained…
The Boeing 737 Max grounding by President Trump yesterday could have a profound effect on the aviation insurance marketplace. The grounding arrives at a time when aviation insurance is transitioning into a hard market, making its timing fairly significant. Grounding Liability is a coverage that manufacturers like Boeing carry in their Products Liability policies. It…
Based on the second 737 Max accident we are in the midst of reaction surrounding the tragedy, with a lot of airlines grounding the jet until a confident conclusion is reached: https://www.usatoday.com/story/news/nation/2019/03/12/ethiopian-airlines-plane-crash-faa-joins-probe-over-boeing-737-max-8/3137819002/ Based on some recent comments about the complexity of new aircraft today and the connection of this complexity to accidents like this we…