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Summary
- In the US, the Boeing 737 Max is again flying commercial passengers.
- The Federal Aviation Administration had finally cleared the aircraft in November 2020.
- The 737 Max had been grounded worldwide since 2019, after two fatal crashes in Indonesia and Ethiopia, that killed hundreds.
Boeing’s 737 Max has finally returned to the skies in the US with American Air. It’s return to commercial service in the US comes after nearly two years, since the two deadly crashes prompted one of the nation’s longest aircraft grounding in history.
Boeing’s 737 Max Returns To American Skies
Returning to commercial service in the US, an American Airlines Group Inc. 737 Max 8 departed Miami on 29 December 2020 on the first leg of a round trip journey to New York’s LaGuardia Airport. American Airlines’ President Robert Isom, some commuting crew and other employees were part of the flight.
US regulator The Federal Aviation Administration had lifted the flying ban in November 2020 after ordering extensive revisions to the plane’s flight-control computer along with other changes. So much so, reports suggest that the aircraft has been more highly scrutinised than any ever before.
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Significance of Boeing 737 Max’s Comeback
Boeing 737 Max flying passengers again is deemed to be a turning point in a protracted crisis for the aircraft giant. It marks the much-awaited lifting of nearly a two-year ban.
Exhibiting a troubled history, two crashes of Boeing’s top-selling plane had killed a massive total of 346 people-
- In October 2018, Lion Air Flight 610 had unfortunately crashed post take-off from Jakarta.
- In March 2019, Ethiopian Airlines Flight 302 had also crashed upon take-off from Addis Ababa airport.
However, Boeing has reportedly made the necessary changes- making the flight-control system less aggressive, offering more redundancy, and delivering additional pilot training inclusive of a session in a flight simulator.
Now that The Federal Aviation Administration has lifted the nearly two-year ban, a smooth return to service could be vital for Boeing. Besides, the news comes at a time when Boeing’s problems have also been intensified by the COVID-19 pandemic, which has impacted airlines as well as the manufacturers.
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Besides, the Airline’s management is confident that this aircraft is the safest in the skies and agrees with The Federal Aviation Administration’s new safeguards.
©Kalkine Group 2020
Walk Through Boeing’s Third-Quarter Results
Results for the third quarter of 2020 were impacted by COVID-19 and the 737 MAX grounding. The Company reported-
- Revenue of USD 14.1 billion
- GAAP loss per share of (USD 0.79)
- Core (non-GAAP) loss per share of (USD 1.39)
- Operating cash flow was (USD 4.8) billion
- Cash and marketable securities amounted to USD 27.1 billion
- Total backlog was USD 393 billion, including over 4,300 commercial airplanes
Boeing President and Chief Executive Officer Dave Calhoun states that the Company is aligning to the new reality. It is diligently managing its liquidity while transforming the enterprise to be stronger, more sustainable as well as more resilient for the long term.
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On 30 December 2020, Boeing’s stock closed up less than 0.1 per cent at USD 216.67, while American Airlines’ was up 1.8 per cent and quoted USD 16.15.
