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Insight: Monday 21 October 2019: How bad will things get for Boeing?

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Last week, we identified 37 questions for the Boeing 737 MAX program that are awaiting answers.  Today, we’ll take a look at some key questions and provide our thoughts on what could happen. The short answer is that things will get worse for Boeing in the near term. We’ll group some questions by category.

The Re-Certification Process

  1. Will the MAX re-certification be further delayed?
  2. If Boeing

    lied to the FAA about one system, why wouldn’t they have lied about more than one?

  3. Without a complete double-check of the entire certification of the aircraft, how can the FAA and international regulators assure the public that the MAX is now safe?
  4. International regulators were highly critical of the FAA certification processes, as reported in the Joint Authorities Technical Review briefing last week. Will international regulators demand additional independent testing apart from the FAA?
  5. Will they demand their own recertification?
  6. How long will additional regulatory oversight impact the return to service of the MAX?
  7. Will full recertification required, reviewing everything?
  8. Could that take another year or two to complete, keeping the MAX grounded?

We believe the re-certification of the MAX will be impacted because of the revelation that information was withheld from the FAA and that that agency was misled, whether intentionally or not.  Boeing’s lack of transparency will come back to haunt them.  Our return to service estimate has been 2Q 2020 for some time, and for the international market, we are now projection re-entry could be delayed until early 2021, depending on the scope of further investigations.

The business aviation world remains US-market centric, with about 1/2 of the world market, and the National Business Aircraft Association’s Business Aircraft Convention and Exhibition (NBAA-BACE) will get underway in Las Vegas early next week.  We can expect an interesting show, with several new model reveals anticipated.

Gulfstream is expected to launch a new long-range flagship to replace the venerable G650ER at the show.  A three story scaffolding is under construction near their static display, a clear indication that something big is happening.

Pilatus is holding a press conference on their latest upgrade, Honda may launch a new jet, and with a proliferation of new aircraft over the last couple of years, some new models will make their NBAA debuts.  It is looking like an interesting show, and AirInsight will be covering the key events, so stay tuned.

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