Airlines right to seek damages from Boeing

Editor's Note: All the 13 Chinese airlines that have bought Boeing 737 Max 8 are seeking compensation from Boeing for losses of about 4 billion yuan ($579.69 million) because they had to ground 737 Max 8 aircraft. The airlines grounded these aircraft after two 737 Max 8 crashed within six months due to the same technological problem killing 346 people. Will the Chinese airlines succeed in claiming compensation? Three experts share their views on the issue with China Daily's Liu Jianna. Excerpts follow:

Chinese airlines deserve compensation for losses

Chinese airlines have paid a high price for Boeing's design and technological faults. According to international norms, they should get compensation, but the amount most probably may be decided through negotiations. It is almost certain that other airlines will follow their Chinese counterparts and seek damages from Boeing for the losses they have suffered. But some airlines may choose to seek compensation in private for fear of openly offending Boeing, as they know the US company will continue to be a leading player in the duopoly aircraft manufacturing industry.

Boeing's loss, on the other hand, depends on when the ban on the 737 Max 8 will be lifted. And that is possible only after aviation authorities around the world such as the Federal Aviation Administration, the European Space Agency and the Civil Aviation Administration of China approve the aircraft are safe for flying after Boeing fixes the aircraft's flight control system, which supposedly caused the two deadly crashes.

Some may suspect the Chinese airlines' demand for compensation has something to do with the rising tension in China-US trade ties. But that would be pure conjecture since even without the trade dispute, these carriers would have sought compensation for the huge losses they have suffered because of Boeing's defective aircraft maneuvering system.

In this regard, the signing of two landmark deals between China and the European Union on civil aviation last week is expected to strengthen cooperation between the two sides in the field of aviation. And just as European Commission President Jean-Claude Juncker said: "In an increasingly unsettled world, Europe's partnership with China is more important than ever before."

Ning Zhenbo, lead consultant for the Center of Information Technology, Aviation Industry Corporation of China, Ltd

Boeing and air carriers may suffer further losses

A number of foreign air carriers including Turkish Airlines, United Airlines, Ryanair and Flydubai have sought compensation from Boeing. Nonetheless given the ratio of 737 Max 8 that Chinese airlines have bought to the aircraft's total delivery－96 out of 387－the cumulative amount of compensation demanded by the Chinese airlines is huge and thus puts a lot of pressure on Boeing.

Yet the possibility of these carriers getting compensation without a hitch seems slim not only because the world's largest aerospace company is expected to find all kinds of excuses to defend itself, but also because the smooth claim of compensation for one carrier is bound to create a chain reaction that could significantly sap Boeing's finances.

Daniel Elwell, acting FAA administrator, said on Thursday that there is no timetable for reinstating the Boeing 737 Max 8; it will be back only when it is certified as being absolutely safe to fly. Which means the ban on the aircraft may not be lifted anytime soon. Boeing and the airlines that have bought 737 Max 8 aircraft are bound to suffer further losses, although some airlines' hope to put the aircraft back into service before or by the summer travel season.

Bai Ming, a senior research fellow at and deputy director of the Institute of International Market, Chinese Academy of International Trade and Economic Cooperation

Airlines have the right to defend legal interests

According to the United States Contract Law, Boeing is legally bound to give due compensation to the airlines because it is contract-bound to deliver foolproof products in all aspects－be it in design, manufacturing or software. The fact that the 737 Max 8's Maneuvering Characteristics Augmentation System has problems obviously makes Boeing responsible for the two air disasters as well as the losses suffered by the large number of airlines.
But the Boeing case should also teach Chinese aircraft manufacturers a valuable lesson. First, they should place people's safety above everything else. Second, they should establish a complete system and standard for quality control, in order to prevent lax management and poor quality control when orders start flooding in. And third, the relationship between innovation and safety should be managed carefully, so should that between corporate interests and consumers' interests.

Qiao Xinsheng, a professor of law at Zhongnan University of Economics and Law

The views don't necessarily represent those of China Daily.