U.S. To Approve 737 MAX Return As Boeing Faces Strong Headwinds

Written by on 11/18/2020

U.S. To Approve 737 MAX Return As Boeing Faces Strong Headwinds

Via Reuters:

After nearly two years of scrutiny, corporate upheaval and a standoff with global regulators, Boeing Co BA.N is set to win approval on Wednesday from the U.S. Federal Aviation Administration to fly its 737 MAX jet again after two fatal disasters.

The FAA will detail software upgrades and training changes Boeing must make in order for it to resume commercial flights after a 20-month grounding, the longest in commercial aviation history.

The 737 MAX crashes in Indonesia and Ethiopia killed 346 people within five months in 2018 and 2019 and triggered a hailstorm of investigations, ousted executives, frayed U.S. leadership in global aviation and cost Boeing some $20 billion.

The U.S. planemaker’s best-selling jet will resume commercial service facing strong headwinds like a resurgent coronavirus pandemic, new European tariffs, and mistrust of one of the most scrutinized brands in aviation.

“Our family was broken,” Naoise Ryan, whose 39-year-old husband died aboard Ethiopian Airlines flight 302, told a news conference on Tuesday. “We are suffering and we’ll most likely continue to suffer for a very long time, if not for the rest of our lives.”

The 737 MAX is a re-engined upgrade of a jet first introduced in the 1960s. Single-aisle jets, like the MAX and Airbus’ AIR.PA rival A320, are short-haul workhorses that dominate global fleets and provide a major source of industry profit.

Anticipating FAA approval, American Airlines AAL.O plans to relaunch commercial MAX flights on Dec. 29. Southwest Airlines LUV.N, the world’s largest MAX operator, does not plan to fly the aircraft until the second quarter of 2021.

Leading foreign regulators in Europe, Brazil and China also must issue their own approvals for their airlines after independent reviews – illustrating how the 737 MAX crashes upended a once U.S.-dominated airline safety system in which nations large and small for decades moved in lock-step with the FAA.

When it does fly, Boeing will be running a 24-hour war room to monitor all MAX flights for issues that could impact the jet’s return, from stuck landing gear to health emergencies, three people familiar with the matter said.

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