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The Boeing 737 Max is set to return to skies as regulators said they were near the “finish line” of their review of the planes.
The MAX is nearing clearance to fly again after being grounded for 20 months prompted by two fatal crashes that killed 346 people on board.
The Joint Operations Evaluation Board (JOEB) which comprised of civil aviation authorities from the United States, Canada, Brazil, and the European Union have evaluated the aircraft and submitted the final report.
The FAA is expected to clear the aircraft to return service by next week, to be followed by other global aviation regulators, ending the longest and largest grounding of a commercial aircraft.
However, Boeing’s repeated safety oversights and mismanagement were not only tragic but also rank among the expensive corporate blunder in history.
Boeing reported that the direct cost the crisis is about $20 billion, includes $8.6 billion in compensation to customers for having their planes grounded, $5 billion for unusual costs of production, and $6.3 billion for increased costs of the 737 Max program.
It also cost $600 million for jet storage, pilot training and software updates., and established a $100 million victim compensation fund, which is also not included in Boeing’s $20 billion in estimated costs.
Apart from direct cost, Boeing also suffered a huge loss in sales as no new orders were placed for this model., and the company disclosed 448 canceled orders for the Max so far this year, with dropping another 782 aircraft orders from its backlog., means $67 billion in revenue from the drop in sales.