Daily Insight: Wednesday 15 May 2019: Boeing – Piling On?

News

The headlines for Boeing keep getting worse.    Today, new revelations emerged:

• A tape recording emerged of a meeting between Boeing and American Airlines pilots that became contentious after the Lion Air crash but before the Ethiopian crash
• Boeing has begun to store new 737MAX aircraft in Texas as it has run out of space in Seattle.
• TUI, a European airline, reported millions in losses, partly attributed to the MAX grounding and needs clarity on a return to service as it adjusts short-term leases.
• American’s CEO indicates that he would fly on a MAX once regulators approve a return to service and American’s pilots are comfortable in flying it.
• Chinese carriers are considering banding together for a joint claim against Boeing for the MAX groundings.
• Boeing reported four orders in April, despite news to contrary.
• The FAA is also being grilled in Congress about the certification process that let the MAX flaws fall between the cracks.

The news cycle continues to be full of new revelations about Boeing that emerge on almost a daily basis, as the 737MAX is clearly on the radar of investigative journalists.  Most of the revelations are unfavorable to Boeing and the decision processes in the development of the MAX.  As more of these revelations emerge, expectations for a return to service before fall 2019 are fading.