Boing could experience New Criticism over the recent Crash of China Eastern Airlines
The recent Boeing jet crash in China has sparked a new crisis for the American plane manufacturing company. It raised concerns over refreshed regulatory scrutiny and distressing the company with another disaster involved to its planes.
The recent plane crash incident would take weeks before investigators release the crash reasons of Boeing 737-800 NG. Moreover, China Eastern Airlines was operating Boeing 737-800 that dropped down from the sky with 132 people on board.
But the investigation results could weigh massively on Boeing. The plane manufacturing firm recently managed years of issues involved in a newer version of the single-corridor 737, the Max. The company has had long waits in manufacturing and delivering the twin-hall 787 Dreamliner.
Boeing 737-800 NG Airplanes
However, thousands of 737-800 NG airplanes have safely traveled around the world in recent decades. A large number of experts have refused to conclude that the crash incident on Monday involves any fundamental design error.
The stock of Boeing declined 3.6% and the shares of China Eastern dropped 6.5% in trading in Hong Kong. Boeing is the icon of the aviation and largest manufacturing exporter in the United States. The company also maintains a blue-chip stock, a major employer, and the biggest contractor of the US government.
Boeing performed its best for sales in 2021 since 2018, getting orders of 535 airplanes. But the company has endorsed continuous issues. It includes a $3.5 billion charge in the final 3 months of 2021 from the Dreamliner delays. This setback pushed the company to a $4.2 billion loss in the last quarter.
Dreamliner and Max Airplanes
The 2 flagship planes, Dreamliner and Max, made more difficulties for the company. Boeing has had to fight with an industry halting from the Covid-19 pandemic issue. Many airlines have stopped their plans to buy new airplanes with slow air travel recovery to 2019 levels.
The recent issues for Boeing were started with the Max planes and were massively criticized due to 2 plane crashes. One of the airplanes was crashed in 2018 in Indonesia and 2nd plane crashed in March 2019 in Ethiopia. All 346 people lost their lives in both crashes, so the Max planes were grounded after the 2nd crash around the world.
Both incidents brought regulatory abuses, multiple lawsuits, lost orders, and billions of dollars in fines and settlements. However, the United States granted the Max for flight operations at the end of 2020 with essential changes to the plane. Other countries also approved the Max, but the Chinese regulators approved the plane in December.
Boeing 737 Max to Resume Flight Operations
The industry experts believe the Max plane will resume flights in the coming months. But its return could become connected with the recent crash investigation of the 737-800 NG. However, the government of China could hesitate to bring back the Max due to the recent crash incident.
It is important that the Max crash incidents were reportedly connected to the MCAS (flight-control software). The Max version is the only commercial airplane using this software. Moreover, MCAS was added to the Max with significant changes during upgrading from the NG (Next Generation) line.
The safety board of Boeing said it had designated a senior investigator as the representative for the investigation of the company. Boeing’s engine manufacturer and the Federal Aviation Administration would exchange their technical expertise. The company said its technical experts are ready to assist the aviation authority of China.