(Bloomberg) -- Boeing Co. said its grounded 737 Max won’t be cleared to fly until the middle of this year, at least six months later than previously anticipated, adding to the company’s financial burden.
The U.S. planemaker is resetting expectations as it addresses two recent setbacks for the embattled Max: a software flaw that will require more work than expected and an audit that found some wiring on the plane needs to be shifted. The final determination on when the Max will fly again remains in the hands of U.S. regulators, Boeing said in a statement Tuesday. [my bold]
And then there's this:
The European jet maker is converting its old A380 superjumbo factory in Toulouse, France, to "a digitally-enabled" jet A321 line while investing $40 million in Alabama and hiring 275 workers.
This is not good. Boeing can't keep their workers on the payroll for 6 months so when the aircraft is finally cleared and they can restart production they won't have the workers they need. And how pissed do you reckon the airlines would be? They will nail Boeing to the wall when negotiations restart.
The share price is still overvalued and the airlines are looking sus too. Those such as SouthWest that have a lot of Maxs are in obviously taking a haircut and the China virus is going to impact international travel.
