An Air Canada Boeing 737 MAX 8 from San Francisco approaches for landing at Toronto Pearson International Airport over a parked Air Canada Boeing 737 MAX 8 aircraft, March 13, 2019. REUTERS/Chris HelgrenAir Canada says it is suspending its financial guidance for 2019 after the grounding of the Boeing 737 Max aircraft involved in two deadly crashes in five months.
Transport Canada, the U.S. Federal Aviation Authority and other major governing bodies barred the flights of the two-year-old 737 Max after the crash of an Ethiopian Airlines plane shortly after takeoff on Sunday killed 157 people. The erratic flight path appeared similar to a fatal Lion Air crash in October. The pilot of that plane reported control problems.The investigations into both 737 Max crashes are underway, and expected to focus on the automated controls.
Air Canada has about 24 737 Max planes that have been grounded, and was due to take delivery of another 18 or so in 2019. Calgary-based WestJet Airlines Ltd.’s fleet includes 13 737 Max planes. Walter Spracklin, a Royal Bank of Canada analyst, said Air Canada’s move was expected, and noted the carrier has not altered its long-term targets. “We view the interruptions from the 737 Max grounding as a temporary one,” he said in a note to clients.
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