The problem model 737 MAX, manufactured by the American company Boeing, is close to being re-approved for passenger transport. The 737 MAX recertification process took a year longer than the company had originally expected. The US Federal Aviation Administration should complete the entire process with Boeing in the coming days, and the plane could return to the sky as early as November 18.
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The Boeing 737 MAX has not been allowed to fly since March 2019. Due to aircraft failures, two accidents occurred in Ethiopia and Indonesia, killing 346 people.
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However, Boeing’s financial difficulties are, according to server CNN now much worse than the security issues that caused the Boeing 737 MAX to be grounded 20 months ago. The manufacturer is currently facing a huge decline in the aviation industry caused by the coronavirus pandemic.
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Boeing announced on Tuesday that it had not received any new orders for commercial aircraft for commercial flights during October. Its customers have also canceled 12 existing orders for the 737 MAX. The company removed another 25 pending orders because it was not sure that any carrier would buy them.
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This year alone, those interested in Boeing canceled 460 orders. Another 846 manufacturers described as too uncertain to be expected. Almost all related to MAX.
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Boeing now gets most of its money from completing sales. Of the total 13 aircraft delivered by the company in October, only five were intended for passenger transport, the rest were cargo and military aircraft. In the last six months, the company has delivered only 29 commercial aircraft, a decrease compared to 126 that the airlines took over in the same period a year ago.
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During the current crisis, air carriers are primarily trying to save. They do not order new aircraft because they do not need them for their limited flight schedules. For example, American Airlines, following the example of other airlines, announced on Tuesday that it will sell 38.5 million shares to raise money.
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Despite the small number of orders, Boeing shares jumped 13.7 percent on Monday and 5 percent on Tuesday. They were prompted by a report of a vaccine for covid-19, which could be available soon. It brought hope for the revival of the aviation industry and tourism.
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JPMorgan analyst Chase Seth Seifman estimates Boeing’s share price target at $ 190. However, it maintained a neutral rating and set a new target price just above Tuesday’s $ 155.
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