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Take-off delayed

The end is not yet in sight for Boeing’s 737 MAX crisis

It is possible that the plane will not fly again this year

BOEING’S LATEST order and delivery numbers, revealed on July 9th, made for some grim reading. The company delivered just 239 commercial aircraft in the first half of the year, down 37% from the same period in 2018. And it had no new orders whatsoever in the second quarter for its 737 MAX aircraft, from which it makes around a third of its revenues and profits.

The news is hardly surprising, given that the 737 MAX was grounded in March by safety regulators around the world after two crashes in just five months killed 346 people. This has hit Boeing in the pocket, as it only gets paid for planes when they are delivered, and airlines are refusing to take any MAX jets until they are allowed to fly again.

Furthermore, carriers are losing confidence that the aircraft’s problems will actually be fixed at any point soon. In May Boeing revealed a fix for the software issues that contributed to those accidents, but more issues are emerging. A new problem with the plane’s microprocessors emerged in late June, which will take months to fix. And on July 5th European aviation regulators revealed another new software fault. The Federal Aviation Administration, America’s safety regulator, does not want to unground the MAX until other countries’ regulators do so. As a result carriers are already cancelling more flights this autumn.

The rumour among airline executives is that the MAX may not get airborne again this year. And their patience with Boeing is starting to run out. On July 8th flyadeal, a low-cost airline from Saudi Arabia, became the first airline to cancel an order for 737 MAXs—it had requested 30—in favour of Airbus’s competing A320neo. It may be the first of many more.

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