The airline industry as a whole has been having a difficult time due to this coronavirus pandemic. While this isn’t anything new, a potential second major outbreak could end up further hurting the already financially hurting the airline industry as a whole. Airplane manufacturers have also been having a hard time as well due to this situation. However, there was a little bit of good news from America’s largest plane maker, Boeing (NYSE: BA), which stated that it’s previously grounded Max 737 airline will begin testing once more.
The airliner had previously been grounded due to two sudden crashes related to faulty software onboard the plane. Since then, countries all around the world have halted flights from the plane, while Boeing has since grounded all of its 737’s while it sorted out the problem. Between various scandals, such as using inexperienced software engineers to save money, Boeing now seems to be ready to get its airline back into the air.
More specifically, various operational readiness tests will be coming in the coming days, including checks with the government of Canada and the U.S. Federal Aviation Association (FAA). Additionally, these tests will include representative pilots from Europe and Brazil. Should Boeing’s Max 737 pass these tests, governments could end up lifting the no-fly order that’s been placed on these planes.
“We continue to work diligently on safely returning the MAX to service,” said a spokesman from Transport Canada according to the Wall Street Journal. The FAA also stated earlier that the agency would be “following a deliberate process and will take the time it needs to thoroughly review Boeing’s work.”
The main problem with the 737 was due to its automated flight-control featured called the MCAS. In both of the crashes in question, the MCAS took over control from pilots and overpowered efforts by them to stop the potential crashes. In total, 346 people died due to these two incidents, which occurred within five months of each other.
The news has proven to be disastrous for Boeing’s stock price. However, shares have fallen even further thanks to this coronavirus epidemic, which has effectively halted almost all airfare up until the last month of so. Should Boeing’s 737 manage to pass these crucial tests, it would be a major piece of good news for the airliner, which has been grounded for a very long time.
Boeing Company Profile
Boeing is the world’s largest aerospace and defense firm. With headquarters in Chicago, the firm operates in four segments, commercial airplanes, defense, space & security, global services, and Boeing capital. Boeing’s commercial airplanes segment produces about 60% of sales and two-thirds of operating profit, and it competes with Airbus in the production of aircraft ranging from 130 seats upwards. Boeing’s defense, space & security segment competes with Lockheed, Northrop, and several other firms to create military aircraft and weaponry. The defense segment produces about 25% of sales and 13% of operating profit, respectively. Boeing’s global services segment provides aftermarket servicing to commercial and military aircraft and produces about 15% of sales and 21% of operating profit. – Warrior Trading News