The return of the Boeing 737 MAX to the airspace may be delayed. The American aviation authority FAA will also include predecessor 737 in its investigation into the safety of the MAX, reports The Wall Street Journal based on government sources.
The safety of the 737 is not yet in doubt, but the broader investigation is expected to ensure that it takes longer for the 737 MAX to be released. These aircraft are grounded worldwide because of questions about possible safety risks after two accidents with that type of aircraft.
Earlier in the evening, the Bloomberg news agency reported that the American stock market watchdog SEC is going to investigate whether Boeing has properly informed shareholders about the troubles with 737 MAX aircraft. The 737 MAX was involved in a major accident twice within six months. Companies are obliged to inform investors about matters that may have major financial consequences.
The investigation of the SEC is still at an early stage and often enough an investigation of the SEC does not lead to a real charge. Yet it is yet another chapter in the crisis for the American concern. The 737 MAX is an important device for Boeing. After the second crash, aircraft of that type were grounded worldwide.
It is not the first time that Boeing has been asked about the degree of openness to investors. In a statement on May 5, the company acknowledged that a year before it came out it was aware that a certain warning signal in the cockpit was not working properly. In addition, there is also a judicial investigation into Boeing for the accidents.
The cause of those accidents has to do with software that automatically pushes the nose of the device down in certain situations. Boeing has already completed more than two hundred successful test flights with a revised version of the software. That upgrade has not yet been approved by the authorities. When the 737 MAX can go back into the air is still the question.
Peretz M. is an accomplished economist and financial journalist with a deep understanding of the global economy and financial markets. He is a regular contributor to EconomicInform, where he provides expert analysis and commentary on current economic trends and events. With a strong educational background in economics, Peretz has a talent for breaking down complex economic concepts for a general audience and is able to provide insightful perspectives on a wide range of economic issues.