The Federal Aviation Administration is expected to approve the Boeing’s planned update to 737MAX anti-stall software on March 25, a person familiar with the matter told CNBC.
But the approval of the software change does not necessarily mean that the FAA’s order to ground the planes will be lifted, reported CNBC.
Since, it would cost Boeing, billions of dollars to redesign a computerised flight-control system on hundreds of jets sitting idle around the world, Boeing opted for software update. Even the fixes alone could cost the company around $US500 million if everything is resolved in six to eight weeks, According to Canaccord Genuity analyst Ken Herbert.
Herbert added “Delivery delays and reimbursements to airlines for flight disruptions would add another $US2 billion in lost cash flow each month the planes are kept on the ground by regulators”
Before grounding the MAX fleets, FAA said that it would mandate a software update by April, but now it is expected to approve in 10 days.
Boeing also developing updates to pilot training and manuals.
Boeing still continues the production of 737 Max jets, as there are more than 5000 MAX jets in order backlog.