Airlines warn of negative impact on business after Boeing airplanes grounded

Muscat: Less than a week after a number of countries ordered airlines to stop operating Boeing 737 Max 8 jets, airline businesses have said this decision will adversely affect their financial growth.

Air Canada and America’s United Airlines said that their peak season operations will be affected if the Boeing planes continue to remain grounded.

The share prices of several publicly traded airline businesses in America, India and several EU nations dipped after the ban on using Boeing aircrafts was not lifted.

Several EU nations, America, India and Oman all asked airlines to halt operations of all Boeing 737 Max aircraft. The upside of using the Boeing Max aircraft is their long-range travel capabilities and fuel efficiency. And the decision to ground them is affecting flights in several important routes.

While several Indian airlines have complained that this decision will affect their financial plans, they have hiked prices of tickets of several key routes to ‘make up for losses’.

Boeing on the other hand has stopped the delivery of any 737 Max aircrafts but it continues production of these planes.