Boeing nears milestone for Max with key flight in June

Bloomberg

Boeing Co is closing in on a key milestone towards returning its beleaguered 737 Max to the commercial market, targeting later this month for hosting US regulators on a flight to test the jet’s upgraded systems.
The company separately is notifying airlines of an important fix to the grounded jetliner’s wiring, said two people familiar with the planning who asked not to be named discussing sensitive matters. A draft of revised pilot training for the plane, which has been parked around the world since March 2019 as a result of two fatal crashes that killed 346 people, is also being shared with airlines, the people said.
The moves were strong indications that Boeing is finally nearing the end of the jet’s
15-month grounding and controversy that has engulfed the company after the two fatal crashes. The aviation titan has estimated that it will spend nearly $20 billion compensating customers, keeping suppliers afloat and restoring the production of jets.
“For Boeing, it could close a chapter that’s gone on longer than they wanted and kill a lot
of speculation in the marketplace that the plane will
never fly again,” said George Ferguson, analyst with Bloomberg Intelligence.
The flight by Federal Aviation Administration pilots to certify that the plane meets safety
regulations is one of the critical remaining milestones.
However, the people cautioned that the date hasn’t been finalised and has shifted repeatedly as Boeing completed its final work for regulators.
Boeing’s goal has been to return the 737 Max, a critical source of revenue, to commercial service in the third quarter. The Chicago-based company restarted manufacturing the single-aisle jet late last month, ending a five-month halt to work in its 737 factory in the Seattle suburb of Renton, Washington.
Boeing pared a decline on the news, falling 5.1% to $205.76 at 3:11 pm in New York after dropping as much as 8.9% amid a broader market slump.
The company is revising a software system implicated in the two crashes that repeatedly drove down the noses of the jets due to a malfunction. Reviews of the plane’s safety following its March 13, 2019, grounding also discovered additional flaws that needed upgrading, including its flight-control computer, how electrical wires were bundled and software issues.
The FAA said it won’t approve the plane for passenger service until it is satisfied that all
safety-related issues have been addressed.
“The FAA is in regular contact with Boeing as the company continues its work on the 737 Max,” the agency said in a statement. “The manufacturer must demonstrate compliance with all certification standards.”
Boeing declined to comment on the latest actions.