Boeing Gains As Regulator OKs 737 MAX Electrical Fix
By Dhirendra Tripathi
Investing.com – Boeing (NYSE:BA) shares rose nearly 4% Thursday after the company secured the much-awaited regulatory nod for an electrical fix that had kept some 100 planes of its 737 MAX series grounded.
The plane-maker has informed the carriers that its electrical fix received Federal Aviation Administration approval.
The electrical problem has kept Boeing’s popular 737 MAX planes suspended for an extended period.
Two accidents in 2018 and 2019 forced authorities to ground the narrow body 737 MAX, which was at the time Boeing's biggest money maker in a booming market for narrow body planes. The 20-month safety ban was lifted in November after the company made the fixes.
But the flights were halted in April after a separate electrical issue led the manufacturer to stop deliveries of the planes with an advisory to its clients not to fly those in their fleet.
The FAA nod comes just in time for Boeing as its rival, Airbus (PA:AIR), was getting ready to produce more A320-family planes that compete with 737 MAX.
A Reuters report Tuesday said Airbus had asked key suppliers to get ready for a further 18% increase in A320-family jet output by the end of 2022, on top of existing targets for this year.
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Boeing Gains As Regulator OKs 737 MAX Electrical Fix
