Stakes rise for Boeing as EU, Canada step up scrutiny

 Stakes rise for Boeing as EU, Canada step up scrutiny

By Maggie Fick and Tim Hepher

ADDIS ABABA/PARIS (Reuters) - Europe and Canada said they would seek their own guarantees over the safety of Boeing's 737 MAX, further complicating plans to get the aircraft flying worldwide after they were grounded in the wake of two accidents killing more than 300 people.

As the U.S. Federal Aviation Administration (FAA) analyses Boeing's plans for a software fix prompted by the first crash five months ago, the European Union's aviation safety agency EASA promised its own deep look at any design improvements.

"We will not allow the aircraft to fly if we have not found acceptable answers to all our questions," EASA Executive Director Patrick Ky told an EU parliament committee hearing.

"This is a personal guarantee that I make in front of you," he added.

Canada said it would independently certify the 737 MAX in future, rather than accepting FAA validation. It also said it would send a team to help the U.S. authorities evaluate proposed design changes and decide if others were needed.

Boeing declined to comment.

The unusual public intervention by two leading regulators came as a probe into the final minutes of Ethiopian Airlines Flight 302 turned towards secrets hidden in the cockpit voice recorder.

The voices of Captain Yared Getachew and First Officer Ahmednur Mohammed could help explain the March 10 crash of the Boeing 737 MAX that has worrying parallels with another disaster involving the same model off Indonesia in October.

The twin disasters killed 346 people, but there is no conclusive evidence so far that they are linked.

Black box data was downloaded in France but only Ethiopian experts leading the probe have access to the dialogue between Getachew, 29, and Mohammed, 25. The data was back in Addis Ababa on Tuesday, sources familiar with the probe told Reuters.

Experts believe a new automated system in Boeing's flagship MAX fleet - intended to stop stalling by dipping the nose - may have played a role in both crashes, with pilots unable to override it as their jets plunged downwards.

Both came down just minutes after take-off after erratic flight patterns and loss of control reported by the pilots. However, every accident is a unique chain of human and technical factors, experts say.

The prestige of Ethiopian Airlines, one of Africa's most successful companies, and Boeing, the world's biggest planemaker and a massive U.S. exporter, are at stake.

AWKWARD QUESTIONS FOR INDUSTRY

Lawmakers and safety experts are questioning how thoroughly regulators vetted the MAX model and how well pilots were trained on new features. For now, global regulators have grounded the existing fleet of more than 300 MAX aircraft and deliveries of nearly 5,000 more - worth well over $500 billion - are on hold.

Pressure on Chicago-headquartered Boeing has grown with news that federal prosecutors and the U.S. Department of Transportation are scrutinising how carefully the MAX model was developed, two people briefed on the matter said.

The U.S. Justice Department is also looking at the FAA's oversight of Boeing, one of the people said. And a federal grand jury last week issued at least one subpoena to an entity involved in the plane's development.

In the hope of getting its MAX line back into the air soon, Boeing has said it will roll out a software update and revise pilot training. In the case of the Lion Air crash in Indonesia, it has raised questions about whether crew used the correct procedures.

Development of the 737 MAX, which offers cost savings of about 15 percent on fuel, began in 2011 after the successful launch by its main rival of the Airbus A320neo. The 737 MAX entered service in 2017 after six years of preparation.

Argus Research cut Boeing stock to "hold" from "buy", giving the planemaker at least its fourth downgrade since the crash, Refinitiv data showed. Its shares, however, were enjoying a rare respite on Tuesday, up 1 pct to $376 and cutting losses since the Ethiopian crash to under 11 pct.

GLOBAL RAMIFICATIONS

In the hot seat over its certification of the MAX without demanding additional training and its closeness to Boeing, the FAA has said it is "absolutely" confident in its vetting.

The crisis has put pressure on airline companies.

Norwegian Airlines has already said it will seek compensation after grounding its MAX aircraft.

Various firms are reconsidering Boeing orders, and some are revising financial forecasts given they now cannot count on maintenance and fuel savings factored in from the MAX.

Illustrating the hoops airlines were jumping through, Air Canada said it intended to keep its MAX aircraft grounded until at least July 1, would accelerate intake of recently acquired Airbus A321 planes, and had hired other carriers to provide extra capacity meantime.

Beyond the corporate ramifications, anguished relatives are still waiting to find out what happened.

Many have visited the crash site in a charred field to seek some closure, but there is anger at the slow pace of information and all they have been given for funerals is earth.

"I'm just so terribly sad. I had to leave here without the body of my dead brother," said Abdulmajid Shariff, a Yemeni relative who headed home disappointed on Tuesday.

(Reporting by Maggie Fick and Jason Neely in Addis Ababa, Tim Hepher in Paris, David Ljunggren in Ottawa, Jamie Freed in Singapore, Alastair Macdonald in Brussels, Savio D'Souza in Bengaluru; Writing by Andrew Cawthorne; Editing by Georgina Prodhan, Keith Weir and Mark Potter)

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Updated Date: Mar 20, 2019 01:06:00 IST