Boeing (NYSE: BA) He will reportedly lose his goal of re-certifying the 737 MAX before the end of the current quarter as he settles procedures with the Federal Aviation Administration (FAA) before resuming deliveries.
The 737 MAX has been grounded since March 2019 after a couple of fatal accidents. Boeing removed a key hurdle for the plane to fly again late last month when it completed three days of test flights with the FAA, but the process is still ongoing.
Image source: Boeing.
The FAA said Tuesday that it will soon issue an airworthiness directive to detail changes made to the plane designed to prevent future accidents. The public would have 45 days to comment on the proposed changes and crew procedures, at which time the regulator could proceed with final clearances.
An unidentified source told Reuters that the FAA process is unlikely to be completed before October, which means Boeing would not reach its self-imposed goal of resuming deliveries before September 30.
A short delay is unlikely to be significant as Boeing will likely have trouble delivering the 400 aircraft it has built, but is currently in storage once authorized to do so. In the time since grounding, airlines have been hit hard by the COVID-19 pandemic, which has slowed growth plans and reduced demand for new aircraft.
Boeing has asked suppliers to cut production of the plane’s components, suggesting that the aerospace giant realizes it will take time to review its inventory. But any delivery would be a boost to free cash flow and help Boeing reverse a cash burn that hit $ 4.7 billion in the first quarter.
Boeing will likely provide an update during its second-quarter earnings release, scheduled for July 29.
