Boeing 737 Max Crash
Jun 18, 2019 - Boeing 737 Max jets were grounded in mid-March in the wake of fatal crashes in Ethiopia and Indonesia. Boeing has been working to come up. Investigators looking into a Boeing 737 MAX crash in Ethiopia that killed 157 people have reached a preliminary conclusion that an anti-stall system was activated before the plane hit the ground.
The agreement, however, isn’t a firm order. It was a letter of intent and doesn’t go into Boeing’s (ticker: BA) backlog of orders or into International Consolidated’s fleet plans until terms are finalized. International Consolidated Airlines (IAG), which in addition to British Airways includes Aer Lingus and Iberia among others, flies both Boeing and(AIR.France) jets. Because IAG flies only narrow-body Airbus planes, Boeing’s potential sale of 737 MAX jets, also a narrow-body model, is direct competition with the European jet maker’s existing IAG business. Airbus, though, hasn’t given up. “We would like a chance to compete for that business,” Chief Commercial Officer Christian Scherer told reporters in Paris last week, saying Airbus hadn’t been given a chance to bid on the contract.While technically still in play, the new order may be tough to win away from Boeing, which was hungry for good news after, and Congress questioned its design and in recent months.
Boeing 737 Max Crash
IAG told Barron’s it is working toward a formal agreement and Boeing called the letter of intent a “typical agreement.”“Since it’s IAG, it would be highly unusual if it didn’t become a firm order when the MAX situation is sorted out,” Teal Group Vice President Richard Aboulafia told Barron’s.