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.
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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