Boeing Just Got a 737 MAX Order From British Airways' Owner

Daniel Fowler
June 18, 2019

There were concerns that Boeing would not do well with orders at this year's Paris Air Show given its current situation.

The 737 MAX 8 is now grounded worldwide after Ethiopian Airlines Flight 302 crashed in March, killing all 157 people on board and drawing scrutiny to the new Boeing model's anti-stall system.

The once bestseller has become the most infamous aircraft after its grounding following two fatal crashes in Indonesia and Africa.

The Ethiopian Airlines and Lion Air crashes killed 346 people.

"We'll get it back in the air when it's safe - that is the most important thing here", Muilenburg said.

Boeing depends heavily on the aircraft and has said it is costing at least $1 billion to address problems with the troubled jet.

Boeing Co said on Monday it had no plans to change the name of the 737 MAX after news reports that it would be prepared to do so to improve its future marketing.

The planes will be used by IAG's airlines including British Airways, Vueling and Level, the airline group said in a statement.

Boeing shares rose more than 2.8% after the announcement.

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Boeing is now trying to develop a software fix for 737 Max planes after two deadly crashes.

Investigations into what caused the crashes are still ongoing, but Boeing CEO Dennis Muilenburg has acknowledged that the jet's automatic flight control system played a role in both incidents.

However, IAG will have negotiated a substantial discount from the list price. But it's unclear when that will be, notably for regulators outside the U.S.

Boeing commercial airplanes boss Kevin McAllister said he was "staying very close to the situation" and it was premature to make any predictions on delays for the program.

But while the deal rescued Boeing's fortunes inside the air show, safety experts stressed it remains unclear how and when regulators will allow the plane to fly.

Airbus said on Monday that the plane's additional range, which opens up routes such as India to Europe or China to Australia, would allow airlines to operate a single-aisle aircraft on intercontinental journeys that are only now possible on larger and less fuel-efficient wide-body planes.

But the planemakers remain confident of continued strong demand for more fuel-efficient jets as emissions regulations tighten and air travel continues to rise.

Airbus SE will manufacture a new long-range, single-aisle jetliner, the company announced on Monday, creating an opportunity for carriers in markets where demand for worldwide fights may not be enough to fill traditional wide-body planes.

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