Boeing shares rise to 737 MAX optimism

Boeing shares Co.

The remarks by a top European aviation-safety official on Friday reinforced investor perception that the company’s troubled 737 MAX jetliners were on their way back into service in the coming months.

Patrick Q, executive director of the European Union Aviation Safety Agency, said in an interview with Bloomberg that he felt it was proposed to adequately address problems with a faulty flight-control system implicated in two fatal MAX accidents.

“Our analysis is showing that it is safe, and the level of security reached is sufficient for us,” Mr. Ka said. Known by a spokesperson for EASA as the European Security Agency, it confirmed Bloomberg’s remarks.

Boeing shares, which had gained more than 5% during trading on Friday morning, rose 1.9% on the day to close at $ 167.35. The stock has fallen 49% in 2020.

The 737 MAX, the latest iteration of Boeing’s long-running series of narrow-bodied aircraft, was disassembled by regulators around the world one-and-a-half years ago, as it was involved in dual tragedies some time ago.

US regulators, who are taking lead vetting hardware, software and pilot-training changes for the fleet, are moving to formally lift the grounding in the coming weeks. Mr Ky’s comments are in line with the general timeframe that presumably anticipates the European decision a week later and to resume MAX commercial operations extensively early next year.

A total of 346 people died in two accidents: a jet accident operated by Lion Air in October 2018, and a plane crash operated by Ethiopian Airlines in March 2019.

Last month, the US Federal Aviation Administration chief, Steve Dixon, gave Boeing the jet and FAA pilots as well as a permanent support to the jet after test-flight.

Aviation industry amid coronaviruses

“We still have some work left” to finalize public comment and amendments, Mr Dixon said after the flight.

MAX’s investigation has focused on an automated flight-control system that malfunctioned due to the input of a fatal sensor and overwhelmed the pilots’ input before fatal accidents.

An EASA spokesman said an instruction allowing Max to return to service could follow a period of public comment likely to begin next month.

Boeing’s emphasis on bringing jets back into airline service this year played out against a disastrous period for the global aviation industry as passenger travel faded during the Kovid-19 epidemic.

Boeing’s two 737 Max 8 crashes and subsequent investigations ruined not only the aircraft manufacturer’s reputation, but also its bottom line. WSJ aviation correspondents explain how the scandals unfold and reveal what the flying public can expect in the future. Photo: Gary Hay / EPA-EFE (Originally published March 9, 2020)

Write Matt Grossman at [email protected] and Benjamin Katz at [email protected]

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