Boeings 737 MAX Prepares to Fly Again
Boeings 737 series of planes is the best-selling commercial jetliner in history, with more than 10,000 delivered worldwide over the past 50 years, and is the workhorse of dozens of airlines. In 2011, in response to increasing pressure from Airbus, its major competitor, Boeing announced a new addition to the series, the 737 MAX. Six years later, the MAX was put into service.
In October 2018, Indonesias Lion Air Flight 610, a 737 MAX, crashed. Five months later, Ethiopian Airlines Flight 302, also a MAX, crashed. A total of 346 passengers and crew died in the two incidents. Subsequently, global aviation authorities grounded the 737 MAX.
Investigations indicate that there were several factors and failures that caused the tragic crashes. But the immediate cause was the models flight-control feature, specifically, the software called Maneuvering Control Augmentation System (MCAS). In the instance of both fatal crashes, MCAS erroneously engaged, forcing the planes noses to point down, and the pilots were unable to regain control of the aircraft.
There is evidence that Boeing knew of the MCAS problems early on. On October 17, 2019, Boeing revealed it had turned over text messages between two of the companys test pilots sent in 2016, one of which described the MCASs habit of engaging itself as egregious. Later that month, as he appeared before two congressional committees, former CEO Dennis Muilenburg admitted Boeing knew of the test pilot concerns in early 2019.
Then on January 10, 2020, Boeing released a series of e-mails and instant messages to Congress in which Boeing employees discussed the 737 MAX. Some expressed regret for the companys actions in getting the aircraft certified, while others openly discussed the 737 MAXs flaws.
In May 2020, Boeing announced that production would begin again, with plans to build about 30 jets per month in 2021 and 57 per month in 2022. The company has a backlog of about 4,550 unfulfilled orders, signifying confidence within the airline industry that once the grounding is lifted, the plane will be reliable.
Southwest Airlines owns 34 of the grounded jets, more than any other airline, with orders for another 48 before 2022. Were still wanting to get the MAX back into service, Southwest CEO Gary Kelly told shareholders at the companys annual meeting in May 2020. The MAX airplane is superior to the [older versions of the] 737 that were currently operating. It burns less fuel. Its an excellent airplane. And certainly in this environment, we would love to retire some of our older aircraft, avoid some expensive maintenance and a substitute with the newer airplanes.
Despite the fact that the COVID-19 pandemic had caused air travel to plummet worldwide, Boeings May 2020 announcement triggered an immediate jump of 3.2 percent in the corporations stock price. And in August, as Boeing approached the final steps to recertification, it scored its first orders for new 737 MAX jets of the year.30
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