Sputnik: There have been two deadly incident involving Boeing aircraft, this particular model of the Boeing, in just the past six months. It seems that Boeing stock has actually plunged [by] almost nine percent. How devastating potentially is the economic impact of these incidents for the company?
And so this is going to have a really negative impact. Also, Boeing was about to unveil its 777X airliner on Wednesday, and so it's going to have to put a pause on that as well. It has a large Chinese demand, there's a demand for thousands of new airplanes and that has been projected over the next 20 years; so, that could also be impacted.
Sputnik: Huge numbers. I mean you're talking about aircraft and the ones that are to be delivered still; what aircraft, in particular, would be the major competition if there would need to be a replacement for this Boeing aircraft?
Sara Hsu: There are other aircraft out there that could potentially replace this aircraft. But the issue is that they may be less fuel-efficient and that switching to these other aircraft would involve additional costs, such as administrative costs as well as maintenance costs because most of these aircraft are older.
The Boeing aircraft that it had just unveiled was about to unveil are newer, and so they would potentially involve fewer maintenance costs. So, switching to another aircraft does involve additional administrative and maintenance costs.
Sputnik: We've seen several countries, we've seen carriers and companies, completely ban the use of these planes. Do you think that this will also be the measure that will extend further than the update of the software, or do you think, generally speaking, that this will once again be dependent on the full completion of the investigation?
Sputnik: Meanwhile, the Boeing chief is saying that part of a trade deal between the US and China could, of course, be the purchase of Boeing aircraft. And given that China is not allowing these Boeing planes to fly, what do you think the impact could be for the Sino-American trade talks?
But it may mean that China purchases other types of planes from Boeing, or simply that it waits until the investigation has concluded to commence purchasing more airplanes. So, this will have a small impact on the talks, but really not anything substantial.
Sputnik: Do you think some of these 5 thousand planes that have been ordered, has there been any official suspension of those orders as of yet?
The views expressed in this article are solely those of Sara Hsu and do not necessarily reflect the official position of Sputnik.
The views and opinions expressed in the article do not necessarily reflect those of Sputnik.