Boeing Gets its First 737 Max Order Since its Planes Were Grounded

10:45 06/23/2019

Boeing, BA  the world's largest aerospace company, has something to celebrate.

Since two fatal crashes caused Boeing's 737 Max jets to be grounded since March, the company has been faced with serious hurdles.

Things seem to be looking up for the company as Wall Street recently learned that Boeing has won its first 737 Max order since two deadly crashes with its planes. Shares of Boeing's stock subsequently sailed over 5% on the news.

The orders are worth $24 billion at list prices according to Boeing, however, airlines often receive discounts.

International Consolidated Airlines Group (IAG) has signed a letter of intent at the Paris Air Show to order 200 Boeing 737 Max planes. The company will not post the planes on its monthly order tally until the agreement is finalized.

IAG will use the jets order, which includes the 737 Max 8 and the larger Max 10 that Boeing is developing, for short-haul flights across its airlines. This includes Aer Lingus and low-cost carriers Vueling and Level.

“We have every confidence in Boeing and expect that the aircraft will make a successful return to service in the coming months having received approval from the regulators,” remarked IAG CEO Willie Walsh.

In other news, the president of the pilots’ union at American Airlines, Daniel Carey, wants Boeing to give his safety experts time in a 737 Max flight simulator before the planes fly again.

According to Carey, it is essential that pilots who’ll fly the plane be involved as it goes through re-certification by regulators.

Retired Capt. Chesley 'Sully' Sullenberger recently said to a congressional subcommittee that an automated flight control system on the 737 Max 'was fatally flawed and should never have been approved.'

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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