Boeing jumps after FAA clears repair plan for return of 737 Max

Bloomberg

Boeing Co jumped after regulators signed off on repairs that would end a temporary grounding of newer 737 Max models, clearing the way for the planemaker to resume deliveries of a jetliner crucial to its financial turnaround.
The planemaker sent two service bulletins to 737 Max operators, providing instructions to repair a flight-deck electrical issue that sidelined 106 Max jets for more than a month — and could affect hundreds of 737 models made since early 2019.
The repair order, approved by the US Federal Aviation Administration, resolves a manufacturing defect that has irritated customers, halted deliveries and thwarted Boeing’s plans to smoothly re-introduce its flagship jetliner after two fatal crashes. Boeing handed over only four Max planes last month, halting deliveries after alerting airlines and lessors that some cockpit components weren’t properly grounded because of a slight manufacturing change. The issue involves “degraded” electrical connections on a standby power unit, a circuit breaker panel, and the plane’s main instrument display, the FAA said.
“After gaining final approvals from the FAA, we have issued service bulletins for the affected fleet,” Boeing said. “We’ll continue to stay close to our customers as they complete the work to return their airplanes to service. We are also completing the work as we prepare to resume deliveries.”
The FAA issued an airworthiness directive requiring repairs on April 28 and said it was working with Boeing to finalise the fixes. The costs and time involved are fairly minimal. The repairs should take between nine and 24 hours per plane, for a cumulative tab of about $155,000 for the aircraft sidelined in the US. At least some of the expenses may be covered by warranty, the FAA said. Southwest Airlines Co estimated that repairs will take two to three days for each of its 32 Max aircraft grounded by the issues. The work, which should begin in the next several days, will take about three weeks to complete, the airline said.
FAA Administrator Steve Dickson told a congressional committee that the agency is conducting a review of how Boeing made the manufacturing changes that led to the grounding — and why the safety issues weren’t discovered for about two years.