China’s three biggest airlines have filed claims seeking compensation from Boeing over the grounding and delayed delivery of 737 MAX 8 aircraft followed by two deadly crashes, Chinese state media reported. It has been reported that China Southern Airlines, China Eastern Airlines and Air China would seek payouts from the American aerospace giant comes against the backdrop of an escalating US-China trade war. China Southern Airline is Asia’s largest carrier by fleet size, China Eastern Airline is the country’s number two, while Air China is the state flag carrier.
The news has also been confirmed by state-run Xinhua news agency said the airline had presented Boeing with a compensation claim was correct. No further detail was given regarding finances. China Eastern Airline has grounded its 14 MAX planes while the US aviation was in service among all of China’s carriers. There was no clear or immediate indication that the move was related to the increasingly bitter trade conflict. Last year, Donald Trump had launched the trade war to extract profound economic reforms from Beijing, while accusing China of seeking to forge global industrial dominance through massive state intervention in markets and the theft of US IPR.
Both the US and China have exchanged tariffs on more than $360 billion in two-way trade. The conflict between the two countries has widened recently with the United States taking unprecedented steps to bar US technology sales to Chinese telecom giant Huawei. As Washington suspects that Huawei has deep links with China’s military which could allow Beijing to potentially use Huawei-enabled networks for cyber-sabotage or espionage. After being acknowledged on Saturday, Boeing had to correct flaws in its 737 MAX flight simulator software used to train pilots. The anti-stall system on the MAX models has been blamed in large part for the Ethiopian Airlines tragedy as the airline had crashed minutes after takeoff from Addis Ababa, which had killed all 157 people on board, including eight from China.