(Photo: REUTERS/Jason Redmond)
Boeing is again resetting the timeframe for when it estimates to have the 737 MAX greenlit to fly as the pandemic affects progress. People with knowledge of the matter told CNBC that the aircraft is unlikely to get clearance until late in the summer.
That's a minor, but significant, change from Boeing's earlier attempt to get the beleaguered plane approved by the Federal Aviation Administration halfway through this year.
With the airline industry suffering from travel restrictions caused by a coronavirus, the return of the aircraft could have given a much-needed financial boost to Boeing.
Boeing, losing revenue from failed MAX deliveries to airlines, looks for federal stimulus assistance as its output is hampered. The group is also considering job cuts to help stabilize its financial position. Since last March the company has grounded its 737 Max fleet following two deadly crashes linked to an anti-stall system.
It is not expected that the Federal Aviation Administration will allow the removal of the suspension until August or later, as officials work from home putting a strain on the aerospace firm, which is also being battered as airlines around the globe stop operating during the pandemic.
Before the MAX will be cleared to return to commercial operation, Boeing also has to complete two software upgrades and clear a range of other obstacles, including a recertification flight. Although Boeing has completed several measures to get the plane back in the air, the company says coronavirus slows down work on repairing the Max.
The pandemic has also complicated other parts of the system to get the MAX back in the air again, such as test flights and collaborating with international regulators.
At the company's shareholders meeting next week, Boeing chief executive officer David Calhoun will likely discuss the coronavirus-triggered challenges. Also on Wednesday, Boeing will announce its first-quarter earnings.
The planemaker has requested bailout funds from the U.S. government. Airlines are expected to halt or delay orders for jets they may no longer need or afford, the report bared.
Stocks of Boeing rose by 0.8 percent in the early morning session but fell by 58 percent year to date, while the Dow Jones Industrial Average, which counts Boeing as a member, fell by 18 percent and the S&P 500 by 1.39 percent.
The struggling plane manufacturer is due to slash its 787 Dreamliner production by about 50 percent and also declare permanent job losses when it announces next week its earnings figures for the first quarter.
Citing sources familiar with its plans, Bloomberg stated that the Chicago-based aircraft manufacturer would outline production adjustments to its commercial portfolio, including scaling back the production of Dreamliner, as well as announcing layoffs and buyouts.
