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Boeing’s 737 MAX Still Has Long Road To Traverse

By John F. Heerdink, Jr.

Reportedly, the United States has lifted the longest 20-month-old flight ban in commercial aviation history on Boeing Co’s 737 MAX. Chief Steve Dickson, U.S. Federal Aviation Administration, signed an order lifting the ban and released software, system, and training upgrades Boeing and airlines must complete before carrying passengers. After the flights resume, Boeing will operate a 24-hour war room to monitor all MAX flights for potential problems. However, the decision was not welcomed by the family of the crash victims. 

Boeing’s 737 MAX crashes in Indonesia, and Ethiopia killed 346 people within five months in 2018 and 2019 and led to series of investigations and its resultant grounding, and that caused Boeing $20 billion.

“This airplane is the most scrutinized airplane in aviation history. The design changes that are being put in place completely eliminate the possibility of an accident occurring that is similar to the two accidents.” stated U.S. Federal Aviation Administration chief Steve Dickson.

Approval from other regulators across the globe is still awaited, while the U.S. airlines can start flying commercially once they are done with the FAA’s requirements, including a one-time simulator training session for all MAX pilots.

Boeing still has a long hurdle ahead before it resumes operations. The FAA is requiring new pilot training and software upgrades to deal with a stall-prevention system called MCAS, which was flagged off in both crashes repeatedly shoved down the jet’s nose as pilots struggled to regain control. Reportedly, investigation reports have faulted Boeing and the FAA on the plane’s development and for concealing information about MCAS from pilots.

American Airlines expects to relaunch the first commercial MAX flight since the grounding on Dec. 29, followed by United Airlines and Southwest Airlines in the first quarter and the second quarter. With all the hurdles the company has to face, resuming deliveries of the 737 MAX will generate cash for Boeing and hundreds of strained parts suppliers.

Dow 30 component Boeing (NYSE: BA) is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space, and security systems. To learn more about Boeing (BA) and to track its ongoing progress please visit the Vista Partners Boeing (BA) Coverage Page.





Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

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(Read Original Story: U.S. lifts Boeing 737 MAX flight ban after crash probes, tough hurdles remain in Reuters)


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