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Boeing's Legal Troubles: Chinese aviation firms demand compe

时间:2019-05-25  来源:未知  作者:华东政法继续教育学院

 

 

Air China and China Eastern Airlines are among the major aviation companies demanding compensation from Boeing. The airlines are upset over losses incurred by the grounding of 737 Max aircraft. CGTN reporter Yang Chengxi talked to a legal expert familiar with the aviation industry. He answered some important questions in this legal battle.

YANG CHENGXI SHANGHAI The grounding of more than a dozen Boeing 737 Max aircrafts has resulted in substantial losses for China Eastern Airlines, according to company spokesperson. Now more aviation companies are requesting compensation from Boeing.

Other major airlines such as Air China, China Southern and Xiamen Airlines have joined the legal battle. The amount of compensation requested was not made public. But experts say they can estimate by assessing how much the airlines are losing from the grounding.

YU DAN, ASSOCIATE PROFESSOR INTERNATIONAL LAW SCHOOL EAST CHINA UNIVERSITY OF POLITICAL SCIENCE & LAW There are 96 737MAX model operated by Chinese companies. For one thing, the Chinese airlines must find substitute for the MAX model in its fleet.

On the other hand, if the aircrafts are rented, airlines would have to pay 11 to 14 thousand US dollars a day even when they are grounded.

YU DAN, ASSOCIATE PROFESSOR INTERNATIONAL LAW SCHOOL EAST CHINA UNIVERSITY OF POLITICAL SCIENCE & LAW If we consider the maintenance and parking fee, the number will be much higher.

So according to your experience, what are the odds of success for these requests of compensations?

YU DAN, ASSOCIATE PROFESSOR INTERNATIONAL LAW SCHOOL EAST CHINA UNIVERSITY OF POLITICAL SCIENCE & LAW Manufacturer breached its obligation for warranty, and it constitutes the default of the contract.

But such cases aren't without precedent. In 2013, several Boeing 787s were grounded due to battery troubles.

YU DAN, ASSOCIATE PROFESSOR INTERNATIONAL LAW SCHOOL EAST CHINA UNIVERSITY OF POLITICAL SCIENCE & LAW Its users, including Japan Airlines, Ethiopian airlines had claimed compensation against Boeing. Although we cannot know the exact number for confidential reasons, we know all the airlines they got satisfactory compensation. I think both sides will make their efforts settle this dispute through negotiation and rather than litigation or arbitration.

Boeing has declined to comment on the development, and experts are watching how the US company counteracts this, and whether the issue will be complicated by the current economic relationship between China and the US. YCX, CGTN, SHANGHAI.

 

 




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