Share of the United States based plane maker Boeing rose after the company said that it still expects its grounded 737 Max planes to fly again in air before the end of this year.
Since March this year, after the second accident involving the 737 Max plane within a period of 5 months, all of the planes across the world had been grounded by regulators and airlines. A total of 346 people on board were killed in the two crashes. A fault in an automatic safety system on the plane was primarily blamed for the accidents. Is working around the clock on a fix for the problem, Boeing has said.
There was a 4.5 per cent rise in the stocks of Boeing after the company’s comments which is the best for it since June this year. This rise helped the DOW to move into positive territory because the stock of Boeing is the most heavily weighted stock in the index.
Boeing has said multiple times since this summer that it was hopeful that the US Federal Aviation Administration would allow the 737 Max planes to fly again by the fourth quarter of this year.
There have so far been no comments available from the FAA about any possible time line for the return of 737 Max planes into regular service. Even last month, the US regulatory body had said that it “will lift the grounding order only after we have determined the aircraft is safe.”
However on Monday, Boeing said it “continues to target FAA certification of the MAX flight control software updates during this quarter. Based on this schedule, it is possible that the resumption of MAX deliveries to airline customers could begin in December.”
However the plane maker also noted that the decision of the FAA was the ultimate decider.
Questions are being raised about whether Boeing would be able to meet the schedule particularly after the company revealed last month that questions about the safety of the 737 Max planes were raised by some employees in internal communications when the planes were being certified back in 2016.,
Stating that the communication was “concerning, the FAA said that it was “disappointed” the regulator had not been made aware of the communication earlier in the investigation.
Despite the setback, 42 of the jests are is being manufactured by Boeing every month even though it would not be able to deliver the planes to customers as long as they remain grounded. And since the company gets most of the money form a sale after it delivers planes to customers, therefore being able to the planes is important for Boeing.
Boeing also said it is “working towards final validation of the updated training requirements, which must occur before the MAX returns to commercial service, and which we now expect to begin in January.”
(Adapted from CNN.com)