The widespread grounding of Boeing’s (NYSE: BA) 737 Max planes earlier this year, following two deadly crashes, was one of the worst setbacks the aviation industry has suffered. The company in a recent statement assured the market that the troubled jet would resume operation within a few months. After staying volatile in recent months, Boeing’s stock regained momentum in November.
New Orders
The positive response the company received at the Dubai Air Show has changed the market’s perception of the ill-fated aircraft to some extent. Boeing bagged around 50 new orders for the 737 Max, indicating that airline companies, especially in the Middle East and Asia, are optimistic about the company’s’ ability to revive the flight.
There are reports that more Asian carriers are planning to place orders for 737 Max. Ever since the last aircraft sopped service early this year, literally there were no takers for 737 Max, and the situation turned in favor of rival planemaker Airbus. Though the new orders came as a surprise to many, it has added steam to the ongoing efforts to make the narrow-body planes airworthy once again.
Intense Review
However, regulators in the US are a bit skeptical about the prospects of the company meeting the timeline, considering the intense review procedure that needs to be completed before giving the green signal. The upgraded flight-automation software – a faulty version of which is believed to have caused the accidents – needs to be certified by the Federal Aviation Administration through a fool-proof and methodical process.
While Boeing is busy making the necessary changes to the design of the aircraft, some regulators believe that the ‘early-2020’ timeline set by the company is too optimistic. Earlier, the target date for lifting the curbs on the 737 Max fleet was extended as the company and the authorities didn’t want to take any chance, considering the severity of the accidents.
As many as 346 passengers were killed in the crashes that occurred within a gap of six months, raising serious questions about Boeing’s credibility.
Most Popular
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to
Key highlights from Exxon Mobil Corporation’s (XOM) Q3 2024 earnings results
Exxon Mobil Corporation (NYSE: XOM) reported its third quarter 2024 earnings results today. Total revenues and other income remained relatively flat at $90 billion compared to the same period a
AAPL Earnings: Apple Q4 2024 sales rise 6% YoY, beat estimates
Apple Inc. (NASDAQ: AAPL) reported an increase in revenues for the fourth quarter of 2024. The top line came in above estimates. The gadget giant generated revenues of $94.9 billion
