For Boeing, 2019 has evolved into the worst year for the company’s reputation in its history, beginning of course with the grounding last March of the 737 Max over the airplane’s faulty MCAS (maneuvering characteristics augmentation system). Since then, the company has continued building new 737 Max aircraft at the rate of 42 per month and currently is running out of places to store the undelivered airplanes. Next to no orders for new Max aircraft had been announced in 2019 through October. United Airlines in fact, recently extended its grounding of the Max thru March 2020, essentially a year from the date of the initial removal from service.
Boeing May Have Broken the 737 Max Order Logjam
Key Takeaways:
- 2019 has been Boeing's worst reputational year, marked by the 737 Max grounding, production and storage issues, delays for the 777X, and a need to reinforce 737 NG engine cowlings.
- Recent orders for the 737 Max (from Air Astana, Sun Express, and an undisclosed buyer) and 787s at the Dubai Airshow provided a glimmer of positive news amidst its challenges.
- Despite these new orders, Boeing faces stiff competition, and the 737 Max still lacks formal FAA approval to return to service, with regulators prioritizing safety over speed.
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