Boeing is working towards achieving a final requirement
shares were on track for their largest one-day advance in nearly three months, jumping more than 4 per cent after the company provided an update on its 737 Max jet, which had been grounded this year following two fatal crashes.
The aerospace group said in a statement on Monday that while the Federal Aviation Authority and other regulatory authorities will determine the timing of the jet’s certification and return to commercial service, “it is possible that the resumption of MAX deliveries to airline customers could begin in December”.
That would be contingent on certification and when the FAA reverses the aircraft’s grounding order, it added.
“In parallel, we are working towards final validation of the updated training requirements, which must occur before the MAX returns to commercial service, and which we now expect to begin in January,” it said in its statement.
Boeing shares have been knocked about 18 per cent from a record high in March after the fatal crash of Ethiopian Airlines Flight 302 became the second within the space of six months involving the 737 Max jet. Lion Air Flight 610 crashed in October 2018. A combined 346 people aboard the two flights died.
For the purposes of its third-quarter results, released in October, Boeing said it assumed regulatory approval of the 737 Max returning to service “begins in the fourth quarter of 2019” and that it planned to increase the production rate of the aircraft from 42 per month to 57 per month by late 2020.
Boeing shares were up 4.1 per cent to a three-and-a-half-week high of $365.13 at pixel time, putting the stock on track for its largest one-day jump since August 22. Shares had been up as much as 4.5 per cent.
The stock remains up by 13 per cent in 2019.
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