Boeing 737 Max Facing Challenges Amid COVID-19 Crisis

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Boeing is an American multinational corporation which designs and manufactures aeroplanes worldwide. Boeing 737 Max is the fourth generation of Boeing 737. The 737 Max was grounded worldwide in March 2019 after 2 consecutive crashes. After a few modifications, Boeing 737 Max is in the process of re-certification. The ongoing pandemic has worsened the situation. Even though the restrictions on commercial flights are being eased up, there still are fewer passengers who are travelling. The pandemic has affected the global airlines in all the way possible.

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Boeing: 737 Max Re-certification Process And Orders

Boeing along with Federal Aviation Administration (FAA) performed few tests regarding the certification of 737 Max. FAA is now reviewing the data acquired from the 3-day test period. Federal pilots and global airline crew will participate in the flights to check the changes made in the flight-control system. Successful tests will mean that 737 Max is set to resume flights this September.

Although the Boeing: 737 Max is grounded currently, the certification is not a big worry for the aircraft manufacturer. The major problem here is the need for flights by global airlines. As a consequence of COVID-19 outbreak, the number of flights flying around is pretty less. As per reports, the American Airlines Group is willing to cancel orders of 737 Max. Recently, 97 orders were cancelled by Norwegian Airlines. Whereas, Avolon cancelled 27 orders. While the Boeing is not getting any new order, the company has already received cancellation of over 700 of 737 Max.

There are 400 Boeing 737 Max lying in the storage of the company waiting for the grounding orders to lift. These 737 Max need an update to get approval from the FAA before they can be sold. The Boeing Company may face an issue of order backlog for up to 6-7 years if these 400 flights are not sold.

There is barely 27% passengers flying in the USA as compared to 2019. It is highly doubtful for Boeing to assess its demand with the need for lesser flights for a few years.

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