News Article #2 – Airline shares zigzag after Canada, U.S. ground Boeing 737 Max aircraft

Date: March 13, 2019 (article written by Rajeshni Naidu-Ghelani)

Link: https://www.cbc.ca/news/business/air-canada-westjet-boeing-1.5054648

Summary: Shares of Air Canada fell by nearly 2% after the Canadian announcement, while WestJet was down 1.6%. Shares of most North American airlines fell after the U.S. and Canada announced they were grounding all Boeing 737 Max 8 planes, and banning the aircraft from its airspace. “We are working to rebook impacted customers as soon as possible, but given the magnitude of our 737 MAX operations, which on average carry nine to twelve thousand customers per day, customers can expect delays in rebooking and in reaching Air Canada call centres,” the airline said in a statement. Shares of the two airlines have fallen more than three per cent this week after the crash of the Ethiopian Airlines plane that killed all 157 people on board, including 18 Canadians.

Stakeholders: & how different people/organizations can be effected

Consumers- (-) Consumers are facing lots of problems because of the aeroplanes. There flights are getting delayed and so many consumers loss their lives.

Boeing- (-) Company is facing a huge loss because countries like China, USA and Canada are banning their aircrafts.

Shares- (-) Shares are going down. Companies like Air Canada and West Jet’s share fell down.

Competitors- (+) Their competitors like Airbus, United Technologies etc. will get benefit of it because more companies will be buying their aircrafts.

Personal Opinion: In my opinion, USA and Canada did a right thing by grounding all Boeing 737 Max 8 planes. Even though the companies are facing loss but the lives of people are safe. Money is not important all the time. If they find any default in the plane probably then company will have to face a huge loss which lead the decrease in employment rates and then consumer spending and GDP and so on and so forth.

Questions: Do you think if they find any default in a plane, should the company be just shut down or given a chance to improve it?

If they are given a chance to improve, will you buy a ticket of a plane that is made by Boeing?