CEOs warn of split between regulators on 737 Max approval
European, U.S. bodies conduct own reviews
CHICAGO— Aviation executives are increasingly worried that a widening split between regulators in the U.S. and Europe will extend the grounding of Boeing Co.’s 737 Max, sowing confusion and fear as officials work to approve the resumption of commercial flights after two deadly crashes.
Sounding the alarm this week over the increasingly tenuous alliance were Aengus Kelly, who heads the largest global jet lessor, and United Airlines boss Oscar Munoz. Alexandre de Juniac, who heads global airline trade group IATA, said he was “worried and disappointed” by the lack of unity among regulators.
Aircraft-financing pioneer Steven Udvar-Hazy called it “uncharted territory.”
The regulatory discussions, which had been playing out behind closed doors, spilled out into the open after the head of the European Union Aviation Safety Agency said last week that his group is conducting its own study of Boeing’s design changes along with a broader review.
Under standard procedures used in past accidents, regulators would have delegated authority to the Federal Aviation Administration, which takes the lead in overseeing U.S.-built jets.
“The challenge of the moment is certification,” said Kelly, chief executive officer of AerCap Holdings NV, in an interview last Thursday with Bloomberg TV.
“When will this airplane be permitted to fly on a global basis?”
What’s unclear is if European authorities are diverging on issues like the need for hardware changes to the Max, or are being diligent with a widening review of the Boeing jetliner, grounded for nearly six months, said Richard Aboulafia, aerospace analyst with Teal Group.
“It’s tough to filter out negative messaging because everyone involved needs to show their concern and diligence,” Aboulafia said in an interview by phone.
There’s also the spectre of “politics rearing its head. It’s the worst case and highly unlikely, but nonetheless it’s on people’s minds.”