Actionable insights straight to your inbox


American Airlines To Restart Boeing 737 MAX Flights Tuesday

It's another positive milestone for Boeing as it tries to move past the deepest crisis in its 104-year history.

Image source: Boeing

By David Shepardson and Tracy Rucinski

WASHINGTON/CHICAGO (Reuters) – American Airlines is set to restart U.S. Boeing 737 MAX commercial flights on Tuesday, another milestone for the U.S. planemaker as it tries to move past its deepest crisis in its 104-year history.

The MAX was grounded in March 2019 for 20 months after two fatal crashes in five months killed 346 people. The grounding was lifted by the Federal Aviation Administration (FAA) last month after Boeing agreed to software upgrades and new safeguards on a key flight control system linked to both fatal crashes.

American’s first flight between Miami and New York’s LaGuardia set for Tuesday morning follows flight control updates, maintenance work, fresh pilot training and town hall meetings with flight crews to walk them through Boeing’s changes and address concerns.

“We would have never brought this back if the pilots and flight attendants didn’t feel comfortable,” American’s Chief Operating Officer David Seymour said at a Dec. 2 737 MAX media event.

American is the third carrier globally to resume flights following Gol Linhas Aereas Inteligentes and Grupo Aeromexico earlier this month. Between those two airlines, the updated 737 MAX has flown about 250 commercial flights, according to Cirium, the aviation data firm.

American Airlines currently has 31 737 MAX aircraft after taking delivery of seven more jets since the FAA lifted its safety ban, including one on Monday and plans to gradually reintroduces the plane to its fleet.

A Reuters/Ipsos opinion poll released Monday found that Americans are less familiar with the two fatal 737 MAX crashes, but if made aware of those disasters, more than half say they would probably avoid the aircraft.

The MAX’s return comes at a time when COVID-19 has thrust the industry into its worst crisis, with airlines parking hundreds of jets as demand hovers around 30% of 2019 levels.

When the 737 MAX was grounded, U.S. airlines canceled flights because they lacked aircraft to meet demand, adding to Boeing’s financial liability.

Now airlines are deferring jet deliveries and do not expect a robust rebound until COVID-19 vaccines are widely available.

Relatives of 737 MAX crash victims oppose its return.

“I call on anyone looking to book a flight in the future to understand when they buy their ticket what type of airplane will be used so they can make an informed decision for themselves and their loved ones,” said Yalena Lopez-Lewis, whose husband Antoine Lewis died on the Ethiopian Airlines crash.

Reporting by David Shepardson; additional reporting and writing by Tracy Rucinski; Editing by Stephen Coates.


Source: Reuters

The implications of the dollar potentially losing its status as the global reserve are numerous. Obviously, there may be currency risks, and decreased demand for U.S. Treasuries could lead to rising interest rates. I would also expect to see massive commodity price swings.
Many of us economy-watchers have been expecting recession, though with significant differences on odds and timing. Regardless, recent banking developments just made recession more likely and may have accelerated its onset.
Many people think of position size in terms of how many shares they own of a particular stock. But it’s much smarter to think of it in terms of what percentage of your total capital is in a particular stock.