Boeing says 737 MAX may not win approval to return until mid-year, shares drop

By: Reuters | Washington | Published: January 22, 2020 9:24:05 am

Boeing has estimated the costs of the 737 MAX grounding at more than billion to date, and is expected to disclose significant additional costs during its fourth-quarter earnings release on Jan. 29. (REUTERS/Chris Helgren/File Photo) Boeing Co said on Tuesday it does not expect to win approval for the return of the 737 MAX to service until mid-year due to further potential developments in the certification process and regulatory scrutiny on its flight control system.

Boeing said it has informed airlines and suppliers of the new estimate, which is longer than previous forecasts and also takes into account new anticipated pilot training requirements. The Chicago-based planemaker has been updating the 737 MAX flight control system and software to address issues believed to have played a role in two crashes in Indonesia and Ethiopia that killed 346 people within five months.

Boeing shares were down 5% at $307.88 after the news. Reuters reported last week that regulators had been pushing back the time needed to approve the plane, which has been grounded since the second fatal crash in March.