New FAA chief says Boeing 737 Max planes will remain grounded
FAA Administrator Stephen Dickson on when he expects the Boeing’s 737 Max to return to the skies.
Airbus is stretching its lead over Boeing in aircraft deliveries as the U.S. based planemaker continues to be held back by the grounding of its 737 Max.
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Chicago-based Boeing said Tuesday it delivered 19 planes in July, down from 39 in July 2018. It also reported that it received no new orders for the Max in July — the fourth straight month without an order.
European rival Airbus reported 69 deliveries last month, including 52 A320neo and A321neo jets that compete with the Max.
This year through July, Boeing has delivered 258 airliners. That's down 38% from a year earlier, and far behind Airbus' 458 deliveries.
Boeing halted Max deliveries in March after the second of two crashes that together killed 346 people. New orders for Boeing jets have plunged 71% through the first seven months of 2019. Of the 139 orders in that period, 36 have been for 737 variants including the Max. In the first seven months of last year, Boeing logged 311 orders for 737s, mostly the Max.
Boeing CEO Dennis Muilenburg said last week that the company has not suffered any order cancellations for the plane due to the grounding. The Boeing website shows a backlog of unfilled orders for more than 4,500 Max jets.
Flyadeal, a budget carrier in Saudi Arabia, dropped an intention to buy up to 50 Max jets and switched last month to the Airbus neo. It never signed an order with Boeing, however. Also last month, the parent company of British Airways said it intends to buy 200 Max jets, although it has not signed a firm order either. Air Lease Corp., which leases planes to airlines, disclosed last week that with Boeing's approval it switched 15 of its 150 orders for Max jets to five Boeing 787s. Air Lease executives said they had a shortage of the larger 787s.
Last month, Boeing reported its biggest quarterly loss — nearly $3 billion — after taking a $4.9 billion after-tax charge for the cost of compensating airlines that lost use of their Max jets.
The stock has gained 3 percent this year compared to the 16 percent gain for the S&P 500.
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