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American Airlines (AAL) Prepares for Boeing 737 MAX's Return

Zacks Equity Research
·3 mins read

Per a CNBC report, American Airlines Group AAL is planning to begin training pilots on the Boeing 737 MAX aircraft in November. This is a sign that the grounded Boeing 737 MAX aircraft’s return to service is approaching.

Notably, the Boeing 737 MAX aircraft has been grounded since March 2019 following two crashes which killed 346 passengers. Ever since then, this aircraft has been under scrutiny and underwent software and other changes. Last month, the Federal Aviation Administration (“FAA”) issued the safety-related changes needed for the jets to start flying again. Although the FAA is going through the final steps before recertifying the aircraft as fit to fly again, it is yet to provide a specific timeline.

Keeping this in mind, American Airlines has not made any “definitive plans” on the Max and stated that the pilot-training date can be adjusted depending upon the regulators’ work.

American Airlines Group Inc. Price

American Airlines Group Inc. Price
American Airlines Group Inc. Price

American Airlines Group Inc. price | American Airlines Group Inc. Quote


In a pilot memo seen by CNBC, Ameya Kingaonkar, director of flight training, planning and scheduling, stated, “With the planned return to service for our B737 MAX aircraft in the near future, we will begin conducting B737 MAX Special Training for our B737 pilots.” Kingaonkar further added that all of American Airlines’ B737 pilots are expected to be trained on the MAX by the end of January 2021.

Although a return to service of this fuel-efficient MAX aircraft is expected to be beneficial to American Airlines in terms of more savings on fuel costs, the airline will be able to operate only a fraction of its MAX fleet amid depressed air-travel demand, thanks to coronavirus.

Zacks Rank & Key Picks

American Airlines carries a Zacks Rank #4 (Sell).

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