Insight: Monday 2 September 2019 – 737 MAX return more uncertain

News

Numerous reports indicate a potential setback for Boeing in its efforts to have the 737 MAX approved for re-entry into service this month.  American Airlines announced Sunday it is cancelling MAX flights through December 3rd.  The Wall St. Journal reported that the Joint International Technical Review committee meeting with Boeing in August did not go well for the manufacturer, with regulators complaining about vague answers and a lack of technical specifics regarding improvements to the MCAS and flight management systems.

With headlines stating The Boeing 737 MAX sage isn’t even close to being over, confidence in a return to service in 2019 is waning.  In our view, the combination of Boeing’s lack of transparency with international regulators, combined with emerging issues and geopolitical trade issues could extend the grounding into the second quarter of 2020.  From our sources, we learned that international regulators considered Boeing executives to be arrogant when they are certainly not in a position to be, and one indicated that they would be “in no hurry” to support a rapid return to service.