American cancels more flights amid Boeing 737 Max grounding

Investigators have determined that an anti-stall system automatically activated before the Ethiopian Airlines Boeing 737 Max jet plunged into the ground

More travel disruptions on the way as American Airlines cancels 737 Max flights into June

Executives at the United States aircraft maker say they're going to reduce monthly output of the 737 airliner from 52 to 42 planes.

American Airlines, which operates 24 planes of the planes, said Sunday that it will cancel all flights on the model, or roughly 90 per day, through at least June 5.

Citing "corporate greed" and "serious misconduct", the family of an American man who died when an Ethiopian Airlines plane crashed last month filed a lawsuit Monday against Boeing, the manufacturer of the 737 Max aircraft.

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The Texas-based airline, that previously canceled some of its flights until the end of April 2019, said it would "contact affected customers directly by email or telephone" for rebooking. Boeing and the FAA have been under inquiry since the collapses and the plane has been suspended from mid-March after the fatal accidents that killed 346 people onboard the jets.

Attorneys said Boeing failed to properly test its controversial Maneuvering Characteristics Augmentation System, which is believed to be the cause of the Ethiopian Airlines crash as well as a Lion Air crash in October previous year. The event was to showcase the updated automated flight control system and the revised pilot training protocols.

Preliminary reports into accidents in Indonesia and Ethiopia found that faulty sensor readings erroneously triggered an anti-stall system that pushed the plane's nose down. A Lion Air flight crashed in October and an Ethiopian Airlines flight crashed on March 10. It is one of a growing number of claims against the company in the wake of two deadly crashes involving the 737 Max. The airline acknowledged in a statement that the prolonged cancellations could bring disruption for some travelers.

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Cowen now expects full-year deliveries of "around 500", down from its earlier forecast of 630 737 MAX jets. However, Boeing said that this problem is unrelated to MCAS, and would be addressed as part of the software update. "We know it's been frustrating for our customers, but we have taken several steps to try to minimize the inconvenience and frustration".

Meanwhile the firm's board, upon the CEO's request, has set up a committee in charge of reviewing company-wide policies and processes for the design and development of Boeing planes. However, Morningstar said Boeing should be able to ramp up monthly production of the planes to 57 aircraft before hitting the mid-60s in the next decade.

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