Boeing Makes First 737 MAX Delivery Since Lifting of FAA Ban
December 08 2020 - 3:50PM
Dow Jones News
By Andrew Tangel
Boeing Co. has delivered a 737 MAX to United Airlines Holdings
Inc., the first carrier to receive a newly produced model of the
jet after U.S. regulators ended a nearly two-year grounding last
month.
A United crew took possession of a MAX on Tuesday, according to
a spokesman for the carrie. It was the first of eight finished MAX
planes expected to be delivered to United by end of the year.
The United spokesman said the airline would inspect and test-fly
each MAX before reintroducing the aircraft back into passenger
service in the first quarter of next year. Pilots also would have
to undergo new training approved by the Federal Aviation
Administration.
The resumption of MAX deliveries is crucial to Boeing's effort
to stop bleeding cash by the end of next year or early 2022. The
world-wide grounding since March 2019 has left Boeing unable to
hand over finished MAX aircraft to customers who pay much of the
sales price upon receipt.
The manufacturer had sought to resume deliveries late last year
before regulators approved fixes to the aircraft's flight-control
system and related pilot training. The push ultimately
faltered.
The FAA lifted its MAX flight ban on Nov. 18 after it approved
safety fixes, including new software changes affecting the
flight-control system at the center of the two crashes that claimed
the lives of 346 people. Brazilian regulators have followed suit,
and other countries are expected to do the same in coming
months.
Before the FAA's ungrounding, Boeing had planned to deliver
about two dozen MAX planes by the end of the year, people briefed
on the matter said. Two other airlines, American Airlines Group
Inc. and Southwest Airlines Co., are expected to take delivery of
new aircraft this month. People familiar with Boeing's delivery
schedule have said plans are fluid.
Boeing said it has built around 450 jets that it has been unable
to deliver during the grounding. It halted production for a while
earlier this year to limit the buildup and has restarted
assembly.
Output has since resumed, but the manufacturer's ability to move
existing inventory will determine its production rates. The
Covid-19 pandemic has for now sapped airline demand for the jets,
complicating Boeing's ability to deliver the planes as customers
cancel or defer their orders.
Last week, Boeing notched its first big MAX order of the year.
European discount airline Ryanair Holdings PLC said it would buy an
additional 75 jets and accelerate its delivery schedule.
Analysts forecast Boeing will deliver around 180 MAX jets in
2021, including 50 for Ryanair.
The plane maker has been striking deals with MAX customers that
include compensation as well as reducing and deferring MAX
deliveries, including the follow-on order announced last week by
Ryanair.
Boeing, in its monthly update Tuesday, said it delivered only
seven jets of all types in November, with no MAX or 787 Dreamliners
handed over, taking its year-to-date total to 118. It announced
cancellations for another 63 MAX jets, including a near-halving of
the order from Virgin Australia Holdings Ltd. to 25 from 48.
Brazil's GOL Linhas Aereas Inteligentes SA said it plans to
become the first airline to return the MAX to passenger service
with flights starting Dec. 9. The carrier aims to have its
seven-strong MAX fleet flying this month, and has 95 more on order
after restructuring its deal with Boeing.
--Doug Cameron contributed to this article.
Write to Andrew Tangel at Andrew.Tangel@wsj.com
(END) Dow Jones Newswires
December 08, 2020 15:35 ET (20:35 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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