Analysts: Fear of flying Max 8s will largely diminish over time

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Southwest said the grounding of the Max forced approximately 150 cancellations per day during its first several days.
Southwest said the grounding of the Max forced approximately 150 cancellations per day during its first several days. Photo Credit: Angel DiBilio/Shutterstock.com

Until the crash of Ethiopian Airlines Flight 302 on March 10, airlines operating Boeing 737 Max aircraft frequently used marketing campaigns to boast about the inclusion of the new-generation narrowbody in their fleets.

Although those days have likely come to an end -- at least for the foreseeable future -- analysts don't expect flyers to stay away from Max-operated routes once the aircraft is cleared by the FAA and other airline safety regulatory authorities to return the skies. 

"They are going to assume that if the pilot is willing to fly that plane, they are going to be safe because it is his life too," said Michael Taylor, head of J.D. Power's Travel Intelligence business.

As the worldwide grounding of the 737 Max 8 and Max 9 lingers toward a third week, the aircraft continues to be the subject of heavy public scrutiny. In the U.S., House transportation committee chairman Peter DeFazio (D-Ore.) has said he will conduct hearings to examine the relationship between Boeing and the FAA as well as the FAA's process for approving new aircraft types. 

Separately, DOT secretary Elaine Chao has asked the department's inspector general to conduct an audit of the FAA's certification process for the 737 Max amid concerns that the agency is too cozy with Boeing and has turned over too much of the certification review process to the aircraft maker itself.

Authorities believe that the Oct. 29 Lion Air crash that killed 189 people was brought down by erroneous information transmitted from an aircraft sensor to the plane's automated flight control system, which caused the plane to nosedive.

Black box data has shown similarities between the recent Ethiopian crash that killed 157 people and the Lion Air crash, according to the French aviation safety regulator BEA.

In an open letter last week, Boeing CEO Dennis Muilenburg said the company will soon release a software update and launch related pilot training that will address concerns discovered during the investigation of the Lion Air crash.

"Based on facts from the Lion Air Flight 610 accident and emerging data as it becomes available from the Ethiopian Airlines Flight 302 accident, we're taking actions to fully ensure the safety of the 737 Max," Muilenburg wrote. "We also understand and regret the challenges for our customers and the flying public caused by the fleet's grounding."

For airlines that operate the Max, those challenges have been substantial. For example, Air Canada, which had been operating 24 Max 8s and had planned to take delivery of six more through April, announced on March 19 that it had removed the Max from its schedule through at least July 1. The Max accounted for 6% of Air Canada's flying, and the airline said that among the adjustments it is making are frequency reductions on some routes, changes in operating times and, in a few cases, route suspensions.

Southwest, which flies 34 Max 8s, said that the grounding forced approximately 150 cancellations per day during its first several days. Meanwhile, Brazil's Gol is now using a 737-800 and making a fueling stop in Punta Cana to operate its Brasilia-Orlando route, the longest nonstop Boeing 737 route in the world. The carrier introduced it in November with Max equipment. 

Indeed, Gol is among the many carriers that touted its use of the Max 8 prior to the Ethiopian crash. In December, the carrier issued a press release boasting that the Max 8 had enabled it to diversify its route network and to begin flights to North America. Gol said it planned to introduce an international destination each quarter for the next two years utilizing the Max 8, which offers greater fuel efficiency and range than earlier 737s. 

Carlos Ozores, principal aviation analyst for the consultancy ICF, said that such marketing efforts could potentially cause public fallout from the Max grounding to linger beyond the aircraft's return to service. 

"As customers become more attuned to the type of aircraft they are flying, and as airlines market that aircraft, the fact that they've created that awareness can have an impact," he said. 

But Ozores added that the long-term impact will ultimately be determined by how the grounding and the Max's eventual return to the skies plays out. 

"There is potential for this to not get much worse, and there is also a potential for it to become quite an ordeal," he said. 

Peter Harbison, CEO of the CAPA Centre for Aviation, an Australia-based airline research and market analysis company, noted that Boeing's 787 Dreamliner was grounded in 2013 and has since become one of the most popular aircraft types ever. But there were no crashes prior to the FAA grounding the Dreamliner for more than three months due to an issue with leaking lithium batteries.

In a more analogous situation, the FAA grounded the McDonnell Douglas DC-10 in 1979 following three crashes. While investigators later determined that the crashes weren't a result of aircraft design, Harbison said that in the interim he had decided not to fly on a DC-10 ever again. The pledge lasted only until he and his family encountered travel difficulties between Lisbon and Geneva and the only option was to get on a DC-10. 

"So, I don't think it will be an issue for the flyer," he said. 

Ultimately, said J.D. Power's Taylor, airline customers don't pay much attention to aircraft type. 

"The vast majority of passengers have no idea what aircraft they are getting on," he said. 

"My prediction is that once it is deemed safe and airworthy, passengers aren't going to concern themselves with whether they are on a 737 Max or a 737-800," Taylor added.

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