Airbus CEO: Boeing's Woes Could Dent Passenger Confidence, Hinder Regulator Cooperation -- 2nd Update
16 May 2019 - 9:37PM
Dow Jones News
--Airbus's CEO said the grounding of the Boeing 737 Max plane
could weaken passenger trust in aviation
--There has been tension between regulators, including the FAA
and EASA, which will meet next week
--The EASA will review the FAA's findings on the MAX but will
also assess the plane before allowing it to fly again
By Robert Wall
Airbus SE (AIR.FR) Chief Executive Guillaume Faury Thursday
expressed concern that the grounding of the rival Boeing Co. (BA)
737 MAX plane could dent passenger confidence and damage
cooperation among international air safety regulators.
"There are a number of negative impacts for the industry," Mr.
Faury told reporters.
Boeing's 737 MAX suffered two fatal crashes in less than five
months, spurring safety concerns that led to the jet's global
grounding in March.
Mr. Faury said that if passenger trust in aviation were weakened
it would be negative for the entire industry.
He also voiced concern about "tension" between aviation
regulators in different jurisdiction.
European and other foreign regulators were the first to ground
the MAX before the U.S. Federal Aviation Administration, the
primary air safety regulator for Boeing planes. FAA Acting
Administrator Daniel Elwell Wednesday told U.S. lawmakers the
overseas regulators acted without data.
Boeing is working on a fix to the MAX flight control system flaw
implicated in the two crashes that took place in Indonesia and
Ethiopia. The accidents killed 346 people.
The FAA plans a meeting next week with foreign air safety
authorities to explain how it will review the fix. Mr. Elwell said
he hopes those regulators will follow the FAA's recommendation with
little lag.
Airbus's Mr. Faury said the historic cooperation between its own
regulator, the European Union Aviation Safety Agency, and the FAA
has been good for companies and safety.
"We need this alignment and this joint understanding on how to
develop and certify planes to remain," he said.
Cologne, Germany-based EASA said it is working with the FAA to
review the MAX but will also put the plane through separate
scrutiny before deciding whether to allow it to resume carrying
passengers. EASA officials are scheduled to attend next week's
meeting.
"It is very important we have one system [for safety]," Mr.
Faury said.
There are signs however that finding a global agreement could be
difficult. The FAA has indicated it will not require specific MAX
simulator training for pilots that previously weren't required.
Other countries have signaled they may mandate such sessions.
The FAA, which has come under fire from lawmakers for allowing
Boeing to approve some MAX safety features, said it is reviewing
the process. Mr. Faury said that how the EASA and Airbus interact
differs. But, he added, the European regulator is likely to study
the FAA's eventual findings, which could also impact how Airbus
does business.
European tour operator TUI AG (TUI1.XE), one of the region's
biggest MAX operators, Wednesday said it will need clarity by the
end of the month on whether the plane will be allowed to return to
flight soon. Otherwise, the company expects to extend rentals for
replacement planes.
Mr, Faury played down the prospect of any immediate benefit to
Airbus from Boeing's woes. "We don't see anything positive from the
current situation," he said.
Airbus's rival A320 planes are sold out through 2023, limiting
its ability to provide any to MAX customers that may want to buy
other planes.
Since the MAX fleet was grounded in March, several airlines have
launched competitions for single-aisle planes. Mr. Faury said it
was premature to judge whether the MAX situation would have an
impact on the outcome.
Demand for planes hasn't been dented by the MAX situation, he
added.
Mr. Faury also expressed concern that global trade
tensions--particularly between the U.S. and China--could have
negative implications for aerospace companies. "The trade tensions
that we see, we believe they are lose-lose tensions," he said.
Write to Robert Wall at robert.wall@wsj.com.
(END) Dow Jones Newswires
May 16, 2019 07:22 ET (11:22 GMT)
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