Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Boeing warns of new 737 MAX delay, now sees mid-year return to service

Stock MarketsJan 21, 2020 10:53PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A Boeing 737 Max aircraft taxis the runway at the Renton Municipal Airport in Renton

By David Shepardson and Tracy Rucinski

WASHINGTON/CHICAGO (Reuters) - Boeing (NYSE:BA) Co said on Tuesday it does not expect to win approval for the return of the 737 MAX to service until mid-year due to further potential developments in the certification process and regulatory scrutiny on its flight control system.

Boeing said it has informed airlines and suppliers of the new estimate, which is longer than previous forecasts and also takes into account new anticipated pilot training requirements.

Reuters reported last week that regulators had been pushing back the time needed to approve the plane, which was most recently expected to happen in February or March, a year after the jetliner was grounded worldwide.

Based on regulatory approval in the first quarter, the three U.S. airlines that operate the 737 MAX - American Airlines (NASDAQ:AAL) Group Inc, United Airlines Holdings Inc and Southwest Airlines (NYSE:LUV) Co - were scheduling MAX flights in early June. They will now likely have to extend the timeline again. They have said it could take at least 30 days to resume flights following U.S. Federal Aviation Administration approval because of the time needed to ready the planes and train pilots.

The Chicago-based planemaker has been updating the 737 MAX flight control system and software to address issues believed to have played a role in two crashes in Indonesia and Ethiopia that killed 346 people within five months.

Boeing shares closed 3.3% lower at $313.37 after falling as much as 5.7% during the session.

"Returning the MAX safely to service is our number one priority, and we are confident that will happen," Boeing said in a statement. "We acknowledge and regret the continued difficulties that the grounding of the 737 MAX has presented to our customers, our regulators, our suppliers, and the flying public."

Boeing said it will provide additional information with quarterly results next week.

The FAA said in a statement on Tuesday that it is following a "thorough, deliberate process to verify that all proposed modifications to the Boeing 737 MAX meet the highest certification standards."

The agency is working with other safety regulators to review Boeing's work and reiterated it has set no time frame for when the review will be completed.

Reuters reported on Monday that Boeing is in talks with banks about borrowing $10 billion or more amid rising costs after the two crashes involving the 737 MAX.

Boeing in recent days temporarily halted production of the 737 MAX in Washington state, a move it announced in December as it became clear that regulatory approval was taking longer than it had forecast.

Boeing has estimated the costs of the 737 MAX grounding at more than $9 billion to date, and is expected to disclose significant additional costs during its fourth-quarter earnings release on Jan. 29.

The company faces rising costs from halting production of the plane this month, compensating airlines for lost flights and assisting its supply chain.

Following Boeing’s announcement, Canada's WestJet Airlines said it would remove the 737 MAX from its schedule through June 24. Air Canada declined comment.

Boeing warns of new 737 MAX delay, now sees mid-year return to service
 

Related Articles

Britain's M&S warns on outlook after profit jump
Britain's M&S warns on outlook after profit jump By Reuters - May 25, 2022

LONDON (Reuters) -British retailer Marks & Spencer (OTC:MAKSY) joined rivals in warning on the outlook for the current year amid a worsening cost-of-living crunch, taking the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email