Transport Canada Approves Boeing 737 MAX’s Design Changes

Summary

• Transport Canada announced on Thursday that it has signed off on the changes implemented to Boeing 737 MAX aircraft.
• The jets were taken off airspace in Canada in March 2019 following two fatal crashes that killed a total of 346 people in less than five months.
• While the changes have been validated, Transport Canada said that the restrictions placed on the Boeing 737 MAX will not be lifted until the agency is “fully satisfied” with its tests.

After months of independent evaluation, aviation safety specialists at Transport Canada have validated on the design modifications to the Boeing 737 MAX aircraft, the national body stated on Thursday, December 17.

The approval implies that these changes can now be included on the aircraft registered in Canada, hence taking the Boeing 737 MAX jets closer to getting ungrounded in the country.

Why Was Boeing 737 MAX Aircraft Grounded In Canada?

Boeing 737 MAX jets were taken off airspace in Canada in March 2019 following two fatal crashes that killed a total of 346 people in less than five months.

Reports show that Canada was one of the last major countries beside the United States to ban 737 MAX aircraft. The potential approval of the jets to return to the Canadian skies have triggered negative responses from critics and families of the crash victims.

The crashes triggered a storm of investigations that not only left The Boeing Company’s reputation in tatters, but also reportedly cost it about US$ 20 billion.

The Boeing Company Stock Performance (NYSE: BA, BA:US)

Stocks of The Boeing Company are down nearly 31 per cent this year. However, the scrips shot up by over 14 in the last six months and almost 35 per cent in the last three months.

Since plummeting amid the market crash in March, Boeing shares have rebounded by over 74 per cent in the last nine months. The stocks currently have a 10-day average volume of 23.8 million.

YTD chart of The Boeing Company’s stock performance (Source: Refinitiv/Thomson Reuters)

Transport Canada & Boeing 737 MAX Jets

Transport Canada, in its latest report, said that it has collaborated the Federal Aviation Administration (FAA), the European Union Aviation Safety Agency (EASA), the National Civil Aviation Agency of Brazil (ANAC) and others through the validation process.

The national transport regulator will be working with airline operators, crews and union associations in the country over the next few weeks to proceed with the modification implementation requirements.

While the changes have been validated, Transport Canada said that the restrictions placed on the Boeing 737 MAX jets will not be lifted until the agency is “fully satisfied” with its tests.

Aviation regulators at the United States ungrounded the Boeing 737 Max aircraft in November. Media reports earlier this month said that Boeing 737 MAX would be resuming its commercial flight operations from December 29. However, Transport Canada has stressed that peoples’ safety and security is its top priority.