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Saturday, December 22, 2018

Did Boeing Slight Lion Air Over 737 Max Crash?

Lion Air is trying to cancel billions in orders over a perceived Boeing slight to its reputation when its newly acquired 737 Max 8 crashed shortly after take-off killing all 189 on board. Boeing wanted nothing to do with the air incident in order to keep selling more Max aircraft and without having customers question the aircraft. Lion Air felt the dismissive nature from Boeing towards Lion Air was enough to stop doing business with Boeing.

Boeing is repairing the damaging threat from Lion Air by selling more 737 Max than what's on backorder for Lion Air's fleet.  In other words, it is moving on while Lion Air's principle stakeholder and founder is trying to throw Boeing under its bus. No pun intended. However, it isn't as simple as getting out of a contracted firm order. Boeing will legally charge Lion Air money from canceled firm orders. It will cost Lion Air more money to get out of Boeing as a loyal customer.

An observer can offer solutions for either player at this time as Lion Air is shouldering the immediate liability with its flying customers and surviving families. Boeing might be exposed to lack of confidence for its 737 Max and then lose sales from that customer position. Boeing would rather have Lion Air eat the consequence of the crash and sell more airplanes to other and having Lion Air implode. 

Lion Air does not want to implode and would like Boeing to die in its behalf as a Boeing problem. Losing sales to Lion Air may be the death throes of a dying airline position. They can't buy all the airplanes they ordered because of the crash. It happened to Pan Am after Lockerbie, Scotland's 747 crash. It can happen to Lion Air. The owner of Lion Air knows this and perhaps the early news is that Lion Air is about to shoulder this blame and it will cause its house of financial cards to fall as a result. That is why Boeing is calling in all sales deals at the end of this year. It must find about $22 billion in airplane sales order to replace an air loss from Lion Air.

If the crash investigators find a jointly responsible series of errors Boeing is too big to fail. but Lion Air isn't because there is enough evidence to point fingers at Lion Air and not enough finger pointing for Boeing's position. There are too many Max's flying without a history of problems. There are too many flight crews who have not made bad decisions while flying the 737 Max. 

There simply is not enough supporting evidence to overcome Lion Air's position of a lack of professional acumen. Lion Air is on the way of becoming one of the crash victims. It may not overcome the slippery slope of paying out so much money to lawyers over this matter. Boeing has its lawyers too! If Boeing does sell another 100 737 Max by the of the year they may horribly say. Lion who? At this point, it doesn't bring back Lion Air's casualty of its customers. It's a terrible consequence of the business. 

Boeing did not slight Lion Air over the crash. It is defending itself from another entity's problems while quietly fixing any problems with its product. Every traveler must understand any conveyance is a matter of risk regardless of how many times, it works correctly. Even going downstairs in the morning can not turn out well. The Lion Air crash brings us back to reality, not everything works right everytime and that's the reality that Lion Air is now facing.

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