Boeing expects to incur $5 billion in abnormal production costs associated with the MAX… – : Newsflight :
Manufacture , November 01,2020

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Boeing expects regulatory approval of the 737 MAX to return to service before the end of this year, according to David Calhoun, the president and CEO of Boeing.

“we made important progress working closely with global regulators on 737 certification efforts. We also introduced a comprehensive Safety Management System (SMS), which incorporates the many lessons learned from the internal and external investigations surrounding the MAX..” David said during the third-quarter earnings call on 28th Oct.

“The 737 MAX has now completed around 1,400 test and check flights and more than 3,000 flight hours as it progresses through the robust and comprehensive certification process.”.. airline said during the earnings call

The MAX has been grounded worldwide since March 2019, after 346 people died in two fatal crashes of Lion Air Flight 610 on October 29, 2018 and Ethiopian Airlines Flight 302 on March 10, 2019.

Between July and September, Boeing incurred “$590 million of abnormal production costs related to the 737 program,” the company said in its third-quarter earnings release.

At the end of the third quarter, Boeing’s 737 order backlog stood at 3,400 orders, including a total of 436 order cancellations where customers either canceled altogether or converted their MAX order to another model.

“We currently have approximately 450 737 MAX aircraft built and stored in inventory. We expect to have to re-market some of these aircraft and potentially reconfigure them, which will extend the delivery time frame. We now expect delivery of about half of the aircraft currently in storage by the end of next year and the majority of the remaining in the following year,” Boeing CFO Greg Smith said.

Over the next year, Boeing expects to incur a total of $5 billion in abnormal production costs associated with the MAX.

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