The Federal Aviation Administration issued an order on Wednesday allowing Boeing 737 Max to carry passengers again, sending stock up 5% in premarket trading, according to the FAA press release. Boeing 737 Max was grounded about 20 months ago following two fatal crashes that claimed the lives of 346 people.
- The necessary changes must be made to the Boeing 737 Max planes, inspections done, and additional training provided to the pilots-FAA
- Boeing 737 Max safety feature meant to stop the plane from climbing up too fast and stalling forced the plane nose down, causing the crashes.
- It has cost Boeing more than $20 billion in the process of approving the plane besides the lost orders for the time the plane was grounded.
- Airlines are skeptical about adding Boeing 737 Max in their planned schedule as only American Airlines has done so, while Southwest airlines will hold off until Spring 2021
- Families of Boeing 737 Max crash victims have expressed concerns over the plane’s approval by the FAA.
Boeing stock is currently gaining. BA: NYSE is up 6.64% on premarket
