Boeing (NYSE: BA) has been one of the most battered aerospace stocks for the past year or so. In addition to the effects of the coronavirus pandemic, which has further curtailed demand for new planes, the company’s signature Max 737 jetliner has been grounded since late 2019 over two fatal crashes. After fixing the related issues and undergoing a test from federal aviation authorities, the tweaked plane now has received a passing grade to return back to the skies once more.
The Federal Aviation Administration had just finished its test flight of a Boeing Max 737 on Wednesday, with the agency’s chief personally piloting the airplane. Following his test run, he gave the plane his personal endorsement in relation to the fixes required to bring the airliner up to new standards.
“I like what I saw on the flight this morning. I felt very comfortable. I felt very prepared based on the training,” said FAA administrator Steve Dickson, a former airline pilot. “We’re in the homestretch, but it doesn’t mean we’re going to take shortcuts.”
This test flight from the FAA chief is one of the last steps needed to regain some degree of consumer trust in Boeing’s jetliner. As of right now, it’s expected that the Max fleet could receive aviation approval as early as November.
However, individual airlines that use to plane will still need to perform their out maintenance and checks, testing, as well as pilot training with the plane before any Max 737’s will be returning to service. In reality, it’s quite likely that these planes won’t be flying again in large quantities until sometime early 2021.
Back in 2019, two separate crashes involving the Max 737 within five months of each other ended up losing over 340 lives. Boeing’s 737’s were quickly grounded all over the world, with the resulting incidents causing the biggest corporate crisis in the airplane makers 100-year-long history. At the same time, these failures were a stain on the reputation of American aviation authorities, which are generally seen as the world’s top air-safety groups.
It’s a much-needed piece of good news for the airplane maker, whose share’s have cratered over the past year. In response to the news, the company’s stock is up around 2.6% in pre-market trading. However, considering just how badly the general airline industry is faring right now with the pandemic, it’s unlikely that Boeing will recover fully anytime soon.
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
