United Technologies Corp. (UTC) says its commercial aftermarket business is being hit by ramifications from the Boeing 737 MAX grounding and could see additional headwinds linked to the coronavirus outbreak, but executives are confident that any dip will be short-lived.
Boeing executives believe customer sentiment toward the 737 MAX remains strong, insisting that airlines still want the grounded model even amid rising operating costs linked to simulator training and the risk that passengers may shy away from the aircraft once it returns.
Boeing does not see simulator capacity as an issue that will delay the 737 MAX’s return to service (RTS) and is working with operators to develop plans for training MAX pilots under the assumption that immediate simulator time will be mandated.
Last year turned out to be the ugliest for Boeing’s finances in a generation, with the Chicago-based manufacturer of the 737 MAX and other aerospace and defense products reporting a net loss of $636 million.
Aerospace suppliers are taking different approaches on whether to cut employees as they wrestle with the fallout of the Boeing 737 MAX production halt, with some already doing so while others announce they will not.
Adding simulator training to Boeing’s latest projected 737 MAX certification time frame could push Southwest Airlines’ next MAX revenue flights into the 2020 fourth quarter, estimates laid out by the airline’s executives show.
American Airlines’ fleet of 20 Embraer E190s will be completely retired by mid-summer, regardless of the timing of Boeing 737 MAX recertification, American president Robert Isom said Jan. 23.
As the one-year mark of the Boeing 737 MAX grounding nears, airlines and lessors have to decide whether they want to make use of an upcoming opportunity to cancel orders for the aircraft.
Boeing plans to re-start 737 MAX production “months” before the FAA approves it to fly again, which could be as soon as early spring based on the company’s newest estimate, Boeing president and CEO Dave Calhoun said.
Boeing is telling customers and suppliers that the 737 MAX will not receive its first regulatory approvals until “mid-2020,” which all but ensures MAX operators will not have the aircraft before the peak mid-year travel period ends.
Boeing stakeholders may find out more information about the costs of the 737 MAX fiasco during the company’s Jan. 29 report on 2019 financial results. While Boeing previously identified $5.6 billion in pretax customer compensation for aircraft operators, and added $3.6 billion to the 737’s program accounting block-cost, financial analysts, consultants and others see those figures as just a beginning.
The FAA’s certification process is not fundamentally flawed and “was followed” during the Boeing 737 MAX certification, but shortcomings in key guidance, global perspective, safety assessments, and agency staffing should be addressed to improve the system, an independent committee’s report found.
Southwest Airlines will not resume commercial Boeing 737 MAX operations until June 6, bringing its schedule into line with fellow U.S.-based MAX operators American Airlines and United Airlines.
Malaysia Airlines will not take delivery of any Boeing 737 MAX aircraft in 2020, citing uncertainty surrounding the timing of the aircraft’s clearance by authorities.
Boeing ended 2019 with 380 commercial airplane deliveries—fewer than the number of 737 MAXs it has in storage—and saw its cumulative net order book shrink, largely because of a drop in MAX commitments.
American Airlines has delayed its projected timeline for resuming Boeing 737 MAX operations by two months, until June 4, reflecting continued uncertainty about the timing of the aircraft’s recertification by the FAA.
U.S. House lawmakers investigating the design and development of the Boeing 737 MAX issued their sternest rebuke of the embattled manufacturer to date, following the release of a trove of internal documents late Jan. 9 that drew widespread condemnation on Capitol Hill.
