The Boeing 737 MAX, grounded in March 2019 after two MAX accidents killed 346 people, will soon fly again in commercial traffic.
Gol Airlines, a Brazilian carrier, said it planned to start flights aboard the Boeing 737 Max on Wednesday, making it the first airline to fly passengers on the plane since it was grounded worldwide almost two years ago.
The first flights will be on domestic routes to and from Gol’s hub in São Paulo, with the company expecting all seven of the Max planes in its fleet to be updated and cleared to fly by the end of the month. A Gol spokeswoman declined to provide further details.
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In the United States, the Federal Aviation Administration last month became the first regulator to allow the plane to fly again, after required modifications are made. The agency was recently joined by regulators in Brazil, while the European aviation authority has suggested that it plans to lift its ban within weeks. Relatives of those killed in the crashes criticized the decision to allow the plane to fly again, arguing that it remains unsafe.
Flight safety is always relative. Less than one potential accident in a billion flight hours is the usual design criteria for flight critical systems. The original MCAS trim system that caused the two crashes was designed to a much lower level of safety even though it was a critical system.
As the plane has now been scrutinized by several international safety agencies and has received significant updates I see no reason why the 737 MAX should still be regarded as less safe than any other plane. But that is the rational approach. For many people flying is an emotional issues and those who can avoid to fly on a MAX will probably do so.
The once glorious company Boeing, the creator of the majestic 747, has been ruined by a management that neglected safety and quality to maximize shareholder value.
Boeing has decisively lost its leading rank as biggest global airplane manufacturer. Following the MAX grounding and the bankruptcy of many airlines due to the pandemic orders for and deliveries of new Boeing planes have fallen off a cliff:
Boeing delivered only seven commercial jets in November, just one of them a passenger plane. Data released Tuesday shows the deliveries included no 737 MAXs and no 787 Dreamliners.
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At the end of November, Boeing’s total 2020 order tally for all commercial aircraft models stood at negative 1,048 orders. That included a new order last month for two 767-based air refueling tankers for the Japanese military.
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At the end of November, the Airbus backlog of still-to-be-delivered aircraft stood at 7,302 jets. Its A320neo family, the direct rival of the Boeing 737 MAX family, had a backlog of 5,904 jets.In comparison, Boeing’s total backlog stood at 4,240 jets. And the total backlog for the MAX was 3,290 jets.
Even as the MAX is allowed back into the air, at least in some countries, the trouble for Boeing is far from over:
Boeing and its customer airlines have 837 MAX airliners that shall get back in the air. After the FAA and ANAC, Brazil’s regulator, have stated the conditions, the work can begin. EASA and Transport Canada will follow with eventual modifications on what needs to be done.
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The rework of a 737 MAX wiring for the trim systems takes about 400 working hours. Special teams are set up at facilities around the world to perform this work.
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We can expect it will take until early 2023 for the complete fleet of grounded 737 MAX to fly again.
The rework and late delivery will cost Boeing another few billions in dollars. Sixty two of the MAXes Boeing built while the plane was grounded are now white tails which no longer have a customer. Industry observers say that Boeing is now offering these at a 70+% rebate. That likely means that those sales will create additional losses.
The total cost for the MAX disaster for Boeing will reach about $25 billion. That is enough money to design two completely new airplane types. Money that Boeing now lacks to catch up with its competition:
Boeing is studying an equity sale and other ways to ease a debt burden that has soared to $61 billion this year amid the worst slump in aviation history.
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“When it comes to capital deployment, it will be all about paying down that debt,” [Chief Financial Officer Greg] Smith said at a Credit Suisse Group AG conference. “We’ll continue to invest in the business, but we’ve got to get this debt balance down. And we’ll look at every opportunity to do that in the most efficient way, including equity.”
The unstable financial situation and the 737 MAX are not the only problems Boeing has.

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To cut costs Boeing has moved a final assembly line for the 787 Dreamliner from unionized plants in Washington state to non-unionized South Carolina. Previously the 787 was assembled in both states. The problem is that the non-unionized workforce in South Carolina has a bad reputation for delivering shoddy quality:
While the COVID downturn in air travel is depressing all plane deliveries, especially widebody jets for long-haul routes, manufacturing quality problems at its South Carolina and Utah plants have added to Boeing’s problems with 787 deliveries.
In North Charleston, South Carolina, two manufacturing defects discovered at the join in the aft fuselage have the potential to compromise the jet’s structural integrity and so require intensive inspections and repair work.
In Salt Lake City, another manufacturing quality issue with the assembly of the airplane’s horizontal tail has resulted in the need to inspect hundreds of 787s already in service as well as those in production.
Speaking at the Credit Suisse industrials conference on Friday, Greg Smith, Boeing executive vice president and chief financial officer, said it’s taken “longer than we previously anticipated” to inspect all the airplanes for these potential defects.
As a result of both the slow inspection process and the COVID-related travel restrictions affecting international air travel, Smith said, “We’ve got a large number of undelivered 787 aircraft in inventory.”
More than 70 completed 787 now await delivery, according to a comprehensive online tally updated monthly by Uresh Sheth.
Smith said Friday it could take “through 2021” to clear that backlog of parked 787s.
Other Boeing programs, the 767 based air refueling tanker for the U.S. Air Force and its spaceflight capsule for NASA, are also in trouble. While the company is now likely to survive it may take a decade or longer before Boeing again becomes profitable.
In the short term the highest imminent danger for Boeing comes from the White House.
The Trump administration has sanctioned Chinese technology companies that have some relation with the Chinese military. The sanctions may soon reach a place where they would hurt Boeing:
The first commercial flight of the C919, China’s indigenous twin jet laden with political significance, may be delayed indefinitely due to the US-China tech war.
Beijing has sought to break the Boeing-Airbus duopoly on passenger jets by filling its domestic skies with homegrown airliners made by the state-owned Commercial Aircraft Corporation of China (Comac).
The single-aisle C919 is Comac’s aspirant answer to Boeing’s 737 series that currently makes up the bulk of the growing fleets of state-owned carriers like Air China, China Eastern and China Southern.
Now, President Donald Trump’s administration is said to be considering adding Comac to the 89 airframers and aviation companies on a list of Chinese entities restricted from dealing with American companies for dual-use technologies, solutions or products made with American know-how due to their purported ties with the Chinese military.
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China News Service quoted a Comac executive as saying the company was assessing likely outcomes if Trump put his company on the US’ so-called “entity list”, but claimed current sourcing deals with General Electric (GE), Honeywell and others would continue as normal.
Sanctioning Comac would in the short term hurt that company. But China has a national ambition to become a full fledged airline manufacturing country and will not be stopped by a denial of U.S. components. Sanctions would only delay the inevitable.
It is estimated that China will need 8.000 new passengers jets by 2040. That is a large enough market to support three global manufacturers.
But in retaliation for sanctions China could dramatically hurt Boeing. The Chinese regulator has not yet re-certified the 737 MAX. There are plenty of issues with the MAX that one could argue are still of concern. Chinese air lines are some of the biggest customers for Boeing's 737.
If the Chinese regulator finds reasons to not certify the 737 MAX or to demand extensive additional rework of the planes Boeing will be in new trouble. A certification hold up with unknown outcome would not only concern its sales to customers in China but also to Asian customers who want to use the planes to fly to and from China.
The MAX is now getting back into the air and Boeing may well survive. But a stab in the back from an anti-Chinese White House could still endanger the company.
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Previous Moon of Alabama posts on Boeing 737 MAX issues:
- Boeing, The FAA, And Why Two 737 MAX Planes Crashed – March 12 2019
- Flawed Safety Analysis, Failed Oversight – Why Two 737 MAX Planes Crashed – March 17 2019
- Regulators Knew Of 737 MAX Trim Problems – Certification Demanded Training That Boeing Failed To Deliver – March 29 2019
- Ethiopian Airline Crash – Boeing Advice To 737 MAX Pilots Was Flawed – April 9 2019
- Boeing 737 MAX Crash Reveals Severe Problem With Older Boeing 737 NGs – May 25 2019
- Boeing's Software Fix For The 737 MAX Problem Overwhelms The Plane's Computer – June 27 2019
- EASA Tells Boeing To Fix 5 Major 737 MAX Issues – July 7 2019
- The New Delay Of Boeing's 737 MAX Return Will Not Be The Last One – July 15 2019
- 737 MAX Rudder Control Does Not Meet Safety Guidelines – It Was Still Certified – July 28 2019
- 737 MAX – Boeing Insults International Safety Regulators As New Problems Cause Longer Grounding – September 3 2019
- Boeing Foresees Return Of The 737 MAX In November – But Not Everywhere – September 12 2019
- 14,000 Words Of "Blame The Pilots" That Whitewash Boeing Of 737 MAX Failure – September 18 2019
- Boeing Failed To Consider Pilot Workload When It Designed and Tested The 737 MAX – September 29 2019
- Boeing's New Problems Reach Beyond The 737 MAX – October 12 2019
- 737 MAX Produces More Bad News For Boeing – October 21 2019
- It Is True That Corruption Caused The 737 MAX Accidents. But It Was Not Foreign. – November 25 2019
- Boeing Will Have To Stop Its 737 MAX Production Line. What will Trump Do To Avoid It? – December 13 2019
- Can Boeing Survive Its MAX Problems? – January 22 2020
- New Boeing CEO Insists On Moving The Company Towards Irrelevance – January 24 2020
- A Year After The Second MAX Crashed Boeing Is Faced With Ruin – March 12 2020