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The Boeing 737 MAX Has Been Grounded Since March: How Are Airlines Responding?

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The Boeing 737 MAX Has Been Grounded Since March: How Are Airlines Responding?

Airlines in the U.S. and Europe have been bearing the brunt of the grounding of Boeing Co (NYSE: BA)'s 737 MAX jets, which have been parked since March in the wake of two fatal crashes. 

The Airlines' Position 

More negative reports on Boeing are emerging: on Monday, Bloomberg said the iconic American planemaker and its subcontractors “relied on temporary workers making as little as $9 an hour to develop and test software, often from countries lacking a deep background in aerospace — notably India.”

Boeing said it is continuing to work with the Federal Aviation Administration and other regulatory agencies on the certification of the software update.

Southwest Airlines Co (NYSE: LUV) said it will have to remove the grounded 737 MAX jets from its flying schedule beyond a planned Oct. 1 re-entry date, CEO Gary Kelly told employees Monday, according to Reuters.

United Continental Holdings (NASDAQ: UAL) has not shared a date, but has extended cancellations and stressed that the safety of customers and employees is important. The company said it is in close contact with investigators as well as Boeing to share data and fully cooperate with regulatory authorities.

The latest statement from Delta Air Lines (NYSE: DAL) CEO Ed Bastian is that the Boeing 737 MAX 8 scandal was “unthinkable” and has “traumatized” the aviation industry, but he’s still standing by Boeing, according to Business Insider.

Why It’s Important

It has previously been estimated that the 737 MAX jets could begin flying again by December, according to an FAA official. The latest reports state that the FAA could approve the 737 Max jets to resume flight by late September if Boeing is able to meet that deadline. 

Price Action

Boeing shares were trading down 0.62% at $354.12 at the time of publication Tuesday. The stock has a 52-week range between $292.47 and $446.01 per share.

Southwest shares were trading down 0.45% at $51.30. The stock has a 52-week range between $44.28 and $64.02 per share.

United Continental shares were up 0.15% at $88.58. The stock has a 52-week range between $67.94 and $97.85 per share.

Delta shares were up 1.23% at $58.47. The stock has a 52-week range between $45.08 and $61.32 per share.

Related Links:

Report: Boeing Subpoenaed For 787 Dreamliner Records

Boeing Gives September Estimate For 737 MAX Fix

Photo by Konstantin von Wedelstaedt via Wikimedia

Posted-In: airlines Bloomberg Business Insider ReutersNews Travel General Best of Benzinga

 

Related Articles (BA + DAL)

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