The Boeing Co BA lost 12 more orders for its grounded 737 Max jetliner in October, company data showed on Tuesday.
Through October, the company has lost or removed 1,043 orders for 737 Max. The company's outstanding orders fell to 4,275 in October from 4,325 in September.
Deliveries: Boeing completed 13 deliveries to customers in October, down from 20 in the year-ago period but up from 10 in September, bringing total deliveries through the month to 111, significantly lower from 321 in the year-ago period.
Ungrounding: Grounded 737 Max planes could be allowed back into the skies as soon as Nov. 18 as the Federal Aviation Administration (FAA) completes its safety review. After the approval, airliners will have to carry out software upgrades and new pilot training that are expected to take at least 30 days.
FAA Penalty: Boeing could face new penalties by the FAA tied over violations of a 2015 settlement addressing safety-oversight problems, the Wall Street Journal reports. The penalties are related to alleged quality-control lapses on assembly lines and undue management pressure on engineers certifying safety systems, including the 787 Dreamliner.
Boeing had agreed to pay $12 million penalties in 2015, with the FAA reserving the right to seek up to an additional $24 million by 2020 on compliance violations.
Why It Matters: While the ungrounding of the 737 Max is close, Boeing has many challenges to overcome. Not only has the pandemic hampered demand for Boeing jetliners but the 15% tariffs by the European Union will also hurt the company's demand further.
737 Max safety crisis, FAA penalties, and low demand due to the pandemic have impacted Boeing's market share compared to its rival Airbus SE EADSY, which delivered 72 aircraft in October.
Price Action: BA shares closed 5.2% higher at $188.69 on Monday.
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