Quarterly Trends Report

A scenario analysis of the Boeing 737 MAX

  • Multi Asset
  • Industrials
  • Global

The system failures and ultimate grounding of the Boeing 737 MAX passenger aircraft have been covered extensively in the mass media. Having already reported a market value loss of USD 25bn, the way Boeing now deals with the situation is of utmost importance. In Q2 2019, Third Bridge Forum interviewed six specialists in the aviation space to fully investigate the situational implications.

Following the fatal Lion Air and Ethiopian Airlines accidents in October 2018 and March 2019 respectively, the Boeing 737 MAX has been grounded in over 50 countries across the world. While the direct cause of the incident has not yet been confirmed, it has been widely suggested that the accident occurred from a faulty sensor, which incorrectly reported that the aeroplane was stalling. This triggered the automated system known as the Manoeuvring Characteristics Augmentation System (MCAS), which pointed the nose of the aircraft down in an attempt to correct the alleged stall.

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