National Post (National Edition)
Grounding of Boeing jets clouds bottom line for Air Canada, WestJet
Uncertainty over how long fleet will be sidelined
More than 10,000 passengers on Canada’s two largest airlines had their travel plans disrupted Friday as Boeing Co.’s 737 Max jetliners remain grounded pending an investigation into the Ethiopian Airlines fatal crash last weekend.
Even though the Boeing model involved in two deadly accidents within five months makes up a small percentage of their fleets — 24 planes out of 400 (6 per cent) for Air Canada and 13 out of 175 (about 7 per cent) for WestJet Airlines Ltd. — travel snarls are expected to continue over the weekend until the airlines are able to reconfigure their schedules to replace the 737 Max aircraft with other planes.
While the scheduling is expected to improve by Monday, the overall financial impact is impossible to predict given the uncertainty over how long the 737 Max fleet will remain on the ground.
Air Canada, which suspended its annual financial guidance on Friday to account for the grounding and Boeing’s decision to suspend deliveries of the upgraded 737s, typically carries 9,000 to 12,000 people daily on about 75 Boeing 737 Max flights to places including spring break destinations in the Caribbean and Hawaii.
WestJet said 1,800 of its passengers were impacted Friday after the Calgary- based airline cancelled 18 flights. More than half were rebooked on same-day flights, while the rest had to wait for the weekend.
Between the two airlines, that means last-minute adjustments for at least 10,800 and as many as 13,800 people. Passengers with upcoming flights on 737 Max aircraft can rebook or cancel their flights without fees. However, they will not be compensated for accommodation at their destinations because the groundings classify as a non-controllable irregular event, as per government policy.
It’s difficult to predict how long the planes will be mothballed. The U. S. Federal Aviation Administration ordered the Boeing 737 Max fleet grounded pending further investigation, with authorities in France expected to begin an analysis of the recovered black box on Friday.
In the meantime, Boeing has stopped delivering the jet to customers, but it continues to manufacture the
TRAVEL SNARLS ARE EXPECTED TO REMAIN OVER WEEKEND.