IBA Insights

IBA’s Thoughts On Boeing 737 MAX 8, 13th March 2019

Following the tragic crash of the Boeing 737 MAX 8 in Ethiopia our sympathies are with those affected. There is much speculation that this accident may be in some way linked to the previous Lion Air loss of the same aircraft type given the commonality of flight mode (just after take-off) and apparent loss of control. Investigations of any accident take many months if not years to fully complete but we are following the situation carefully and will share our thoughts on any potential valuation exposure should there be any safety issues identified following the investigation by the investigating authorities. Several authorities have taken unilateral action in banning operations of the MAX 8, rather than reacting to the State of Design (US FAA) decision on airworthiness matters.

Clearly, the popularity of the aircraft type with airlines and leasing companies means this subject is of significant interest to investors and financiers across the globe. For now, IBA is not changing its opinion of the 737 MAX 8 current or future values and expects that Boeing will provide a final fix and training changes with respect to the Lion Air investigation and that may (or may not) be relevant to the Ethiopian accident.

 

Keep up to date with our latest news, insight and market analysis

I would like to receive marketing comms regarding IBA’s services, insight and events.