Financial impact of the Boeing 737 MAX groundings

This article needs to be updated. Relevant discussion may be found on the talk page. Please help update this article to reflect recent events or newly available information. (March 2023)

|

A parking lot at Boeing Field in Seattle filled with grounded Boeing 737 MAX aircraft This article is part of a series about the

Boeing 737 MAX

* Orders and deliveries
* Certification
* Maneuvering Characteristics Augmentation System

Accidents

* Lion Air Flight 610
* Ethiopian Airlines Flight 302
* Alaska Airlines Flight 1282

737 MAX groundings

* Financial impact of groundings
* List of groundings
* Reactions to groundings

* v
* t
* e

The Boeing 737 MAX groundings has had a deep financial effect on the aviation industry and a significant effect on the national economy of the United States. No airline took delivery of the MAX during the groundings. Boeing slowed MAX production to 42 aircraft per month until January 2020, when they halted until the aircraft was reapproved by regulators. Boeing has suffered directly through increased costs, loss of sales and revenue, loss of reputation, victims litigation, client compensation, decreased credit rating and lowered stock value. In January 2020, the company estimated a loss of $18.4 billion for 2019, and it reported 183 canceled MAX orders for the year.

In February 2020, the global COVID-19 pandemic and the resulting travel bans created further uncertainty for Boeing. In March 2020, news that Boeing was seeking a $60 billion bailout caused a steep drop in its stock price, though Boeing eventually received $17 billion in funds from the coronavirus stimulus.[1] Its extensive supply chain providing aircraft components and flight simulators suffered similar losses, as did the aircraft services industry, including crew training, the aftermarket and the aviation insurance industry. At the time of the recertification by the FAA in November 2020, Boeing's net orders for the 737 MAX were down by more than 1,000 aircraft,[2] 448 orders canceled and 782 orders removed from the backlog because they are no longer certain enough to rely on; the total estimated direct costs of the MAX groundings were US$20 billion and indirect costs over US$60 billion.[3] On January 7, 2021, Boeing settled to pay over $2.5 billion after being charged with fraud.

## Effect on Boeing

[edit]

737 MAX aircraft parked at Grant County International Airport in October 2019

Following its intention to suspend production in December 2019, Boeing estimated an additional cost of $6.3 billion to deliver the 737 MAX program [4] and a subsequent reduction in the program's anticipated profit margin.[5]

Boeing initially hoped that flights would resume by July 2019,[citation needed] but on June 3, CEO Dennis Muilenburg revised this to the end of 2019, with no firm timeline.[6] On July 18, Boeing reaffirmed a return to flight during the fourth quarter of 2019, but noting that the date could still slip.[7] In September 2019, Muilenburg suggested a phased return around the world because of the regulatory divisions regarding recertification.[8] Later that same month Boeing told its suppliers that the plane could return to service by November.[9] On November 11, 2019, Boeing revised this to a resumption of deliveries in December 2019 and commercial flights in January 2020.[10][11][12] In January 2020, Boeing said it was not expecting recertification until mid 2020.[13]

In the second quarter of 2019, Boeing reported a record quarterly loss of $2.9 billion, as it provisioned $4.9 billion for airlines compensation. Its inventory had grown by $6 billion, its stock market value had dropped by $62 billion and its share price lost 25% between March and August 2019. Including the knock-on cost for airlines and the supply chain, the groundings were costing $4 billion per quarter. At the time of the grounding, Boeing's annual revenue was $100 billion, 60% of which came from sales of airliners. The 737 MAX represented a third of sales to airlines. The company had a 10% profit margin, for an annual profit of $10 billion. It employed 137,000 people in the United States and paid $45 billion to 13,600 domestic suppliers, which employed a further 1.3 million people, accounting for about 1% of the American workforce.[14] In the first quarter of 2020, Boeing is seeking financial bailout of $60-billion against further disruptions caused by the global coronavirus pandemic.[15]

A special board meeting on October 20, 2019, discussed the financial effect of the groundings, amid speculation of possible staff reductions.[16] Staff in the US and the UK were not to receive their 2019 Christmas bonuses.[17] New CEO Dave Calhoun will receive a multimillion-dollar bonus if he achieves a key milestone of returning the MAX to service.[18][19]

Development of the Boeing New Midsize Airplane has been postponed to prioritize resources on returning the MAX to service. In July 2019, Boeing desisted from a $60 billion Pentagon procurement to replace land-based nuclear missiles. Dow Jones Newswires reported that "some analysts" said that Boeing's ability to pursue big military projects is reduced because of the financial cost of the groundings.[20] As of November 2020, banks valued Boeing's direct costs at 20 billion, and indirect costs of over 60 billion dollars (1200 aircraft) in lost sales, which may be recovered in the future at concessionary prices.[3]

On January 7, 2021, Boeing settled to pay over $2.5 billion after being charged with fraud over the company's hiding of information from safety regulators: a criminal monetary penalty of $243.6 million, $1.77 billion of damages to airline customers, and a $500 million crash-victim beneficiaries fund.[21]

### Litigation

[edit]

#### Pilots

[edit]

In June 2019, 737 MAX pilots jointly filed a class action against Boeing for lost wages due to the grounding, claiming that Boeing attempted to cover-up design flaws with the aircraft.[22]

On October 7, 2019, Southwest Airlines Pilots Association filed a suit against Boeing, arguing it misled the airline's labor union. The association said the MAX grounding cost its pilots over $100 million in lost income, which it claims Boeing should pay.[23]

#### Victims' families

[edit]

Bereaved families of the Lion Air crash are in settlement talks with Boeing, while the Ethiopian victims' families are pursuing a jury trial.[24] Boeing, a Chicago-based company, is the target of over 100 cases in U.S. District Court in Chicago. In October 2019, the company hired Dan K. Webb, co-executive chairman of the Winston & Strawn law firm; he will work with a team of attorneys on the lawsuits filed on behalf of the victims of both accidents.[25]

Unlike the maximum claim by a passenger against an airline, which is limited by the Montreal Convention, claims against the manufacturer are not subject to a preset limit. In effect since 1999, the convention requires an airline, regardless of fault, if it is based in a country that ratified the treaty, to pay around $170,000 each as a minimum liability.[citation needed]

Representatives of passengers on Ethiopian Airlines Flight 302 may be able to argue that Boeing knew, or should have known or contemplated, the risk of a crash from knowledge of MCAS and previous issues, including the earlier Lion Air crash, potentially opening a route to punitive damages.[26] According to lawyers involved in passenger claims, the U.S. legal structure for damage claims is often plaintiff-friendly, and Boeing may therefore attempt to argue that claims on behalf of deceased passengers should be heard in other countries.[26]

On July 3, 2019, Boeing announced it would set aside $100 million to help families of victims with education, hardship and living expenses and for community programs and economic development. However, the plan was criticized by several families, calling it "too vague" and citing that Boeing did not consult them ahead of time. Boeing initially did not explain how it would allocate the money.[27][28] Boeing later announced it dedicates half to distribute to families of victims, under the oversight of veteran U.S. compensation expert Ken Feinberg. The remainder is reserved for government and community projects. Boeing said that the fund distributions are independent from the outcome of lawsuits.[29]

On September 25, 2019, Boeing began to settle the first lawsuits with families of the Lion Air crash victims. It has been reported that each of the settlements cost $1.2 million.[30][31]

On October 30, during congressional hearings, Boeing's CEO was destabilized when lawmakers grilled him about Boeing's attempt to move legal cases from the Lion Air accident out of the US. Peter DeFazio (D) Oregon, the chair of the committee, starkly asked Muilenburg how, as the CEO, he could not be aware of the company's legal strategy.[32]

On January 7, 2021, Boeing settled to establish a $500 million crash-victim beneficiaries fund.[21]

### Orders and deliveries

[edit]

Main article: List of Boeing 737 MAX orders and deliveries

At the time of the grounding, Boeing had 4,636 unfilled orders worldwide for the 737 MAX[33] valued at an estimated $600 billion.[34] Analysts estimated that each month of the grounding delayed $1.8 billion in revenue to the company.[35] Boeing responded to the market pressures by making massive concessions to customers.[36]

Several airlines have cancelled or announced an intention to cancel orders:

Date | Customer | Orders | Note

|
|
|

2019-03-11 | Lion Air | 200 (US$22 billion) | In favor of Airbus aircraft.[37]
2019-03-22 | Garuda Indonesia | 49 | "Passengers have lost trust."[38]
2019-04 | Jet Airways | 119 out of 200 | Suspended operations, remain as contractual agreements.[39]
2019-04 | Virgin Australia | 15 | Deferred by almost two years until satisfied with the MAX safety.[40]
2019-06-03 | Azerbaijan Airlines | 10 MAX 8s | Planned to postpone.[41]
2019-07-07 | flyadeal (Saudi Arabia) | 30 MAX 8s ($6bn) | Suspended, planning switch to the A320neo family.[42]
2019-07-29 | Turkish Airlines | 63 (54 MAX 8s + 9 MAX 9s) | Considering switching to the A320neo.[citation needed]
2019-07-31 | China Southern Airlines | 64 MAX 8s | Suspended orders scheduled to join the 26 MAXs already in its fleet.[43]
2019-08-27 | Rostec's subsidiary Avia (Russia) | 35 | Filed a US lawsuit to cancel the order.[44][45][46]
2019-10 | Royal Air Maroc | 2 | Suspended.[47]
2020-01-15 | Malaysia Airlines | 25 | Suspended delivery.[48][49][50]
2020-01 | Norwegian Air International | 14 | Postponed delivery.[51]

However, Turkish airline SunExpress and an unnamed airline ordered 30 MAXs at the Dubai Airshow in November 2019.[52]

Boeing lost 45 orders for the MAX, following cancellations and conversions, through the first 10 months of 2019.[53]

On January 14, 2020, Boeing reported a net loss of 87 aircraft orders in 2019, its worst performance in three decades; airline customers had canceled 183 orders for the MAX, while Boeing received only 96 orders for other aircraft.[54][55][56]

In April 2020, analysts expected a wave of cancellations after the global coronavirus pandemic resulted in steep reduction of passenger air travel. Airlines and lessors may decide to cancel MAX orders without penalty due to contract provisions enabled by the aircraft's prolonged grounding.[57]

As of the end of July 2020, Boeing's order book for the 737 MAX had been reduced by 836 aircraft since the beginning of the year, for a total firm order backlog of 4,496 aircraft, compared to 7,539 for the Airbus A320neo family.[58]

### Revenue and earnings

[edit]

On April 24, 2019, Boeing released its first-quarter results.[59] The company announced that the grounding of the 737 MAX would cost as much as $1 billion. It consequently suspended its stock buyback program and announced that the previously released earnings forecasts, which were compiled prior to the grounding, were no longer valid and new forecasts will be released in the future.[60][61] Boeing also blamed the grounding for a 21% drop in quarterly profits relative to the quarterly profits from the previous year.[62]

On July 18, 2019, Boeing announced that it was to take a $4.9 billion after-tax charge in the second quarter of 2019. This corresponds to its initial estimate of the cost of compensation to airlines, but not the cost of lawsuits, potential fines, or the less tangible cost to its reputation. It also said that its estimated production costs would rise by $1.7 billion, primarily due to higher costs associated with the reduced production rate.[63]

On July 24, 2019, Boeing released its second-quarter results. The company reported a $2.9 billion loss due to the groundings.[64] It also warned that production might need to be reduced or even suspended if the groundings last longer than Boeing's current assumptions of a return to service in the fourth quarter of 2019.[65] Boeing said that the total cost of groundings approached $8 billion as of July 2019.[66]

In September 2019, Ryanair froze payments to Boeing and started talks on recouping costs of the delay.[67]

According to an earnings report on October 23, in the third quarter of 2019, the grounding cost was $900 million, adding up to $9.2 billion to date for Boeing.[68]

According to George Ferguson, Senior Aerospace, Defense & Airlines Analyst for Bloomberg Intelligence, Boeing would incur an estimated $5 billion if pilots need to be trained on simulator before flying the MAX.[69]

In January 2020, Boeing was said to be securing a loan of $10 billion or more to face rising costs due to the MAX crisis.[70][71] Presenting its 2019 financial results, Boeing doubled its projection to $18.4 Bn after another $9.2 Bn in losses: a $2.6 Bn write-off, $2.6 Bn for lower 737 production, and $4 Bn as an account book loss.[72]

Due to the crisis, Airbus displaced Boeing as the largest aerospace company by revenue in 2019, with revenues of $78.9 billion and $76 billion respectively. Boeing recorded $2 billion operating losses, down from $12 billion profits the previous year.[73]

### Stock analysis

[edit]

On March 10, 2019 and in the days following the crash of Ethiopian Airlines Flight 302, Boeing's stock price declined. By March 14, the stock had lost 11% of its value.[34] By March 23, 2019, the stock had lost 18% of its value, which represented a $40 billion drop in market capitalization.[74]

On April 8, 2019, Bank of America downgraded Boeing's stock after production of the 737 MAX was reduced.[75] On April 10, 2019, a class action lawsuit was filed against Boeing in the U.S. District Court for the Northern District of Illinois by a shareholder who accused the company of "covering up safety problems with its 737 MAX".[76]

On May 7, 2019, Barclays downgraded Boeing stock after conducting a passenger survey that showed nearly half those polled would not fly on the airplane for a year or more after it returns to service.[77]

On July 22, 2019, Fitch Ratings and Moody's lowered Boeing's outlooks to negative from stable, in light of the 737 MAX situation.[78]

On October 21, 2019, Wall Street analysts downgraded Boeing's stock; Boeing's market value could drop by $53 billion according to UBS and Credit Suisse.[79]

On November 11, 2019, Boeing stock rose 4.7% on positive 737 MAX news that it was hoping to resume deliveries of the 737 MAX aircraft to airlines in December 2019 and providing more detail on how the 737 MAX will return to service in January 2020.[80][81]

On December 18, Moody's downgraded Boeing by one level to A3, noting the uncertainty of when the MAX will return to service.[82]

In January 2020, Ron Epstein, aerospace analyst at Bank of America Merrill Lynch, estimates that groundings cost, excluding any settlements from lawsuits from crash victims' families, could reach $20 billion, provided the MAX returns by June or July, 2020.[83]

In January 2020, Fitch Ratings lowered Boeing's long-term credit rating from A to A-, due to risks of delays in returning the MAX to service.[84]

As of March 2020, due to the COVID-19 recession, Boeing's stock had fallen to $129, a 71% deep drop from its March 2019 peak of $446 in the days before the Ethiopian Airlines Flight 302 crash.[85]

### Coronavirus relief

[edit]

This section needs expansion with: ongoing developments. You can help by adding to it. (March 2020)

|

In March 2020, the grounding, compounded by the COVID-19 pandemic had already lowered Boeing's stock price to under $100. Boeing was seeking a $60 billion bailout directed towards its aerospace suppliers.[86] Under the too big to fail theory, Boeing is a significant production and employment contributor to the U.S. economy.[87] On March 25, the United States Senate began voting on its coronavirus aid and relief, which includes $17 billion in aid to Boeing.[88][89]

## Boeing suppliers

[edit]

The reduced production rate and later suspension has caused major disruption throughout Boeing's supply chain of around 8,000 companies.[90]

Spirit AeroSystems, the fuselage supplier for the 737 MAX, saw margins slip and cut work time while it lost 28% of its market capitalization ($3 billion) since March; the 737 MAX accounted for half of the company's revenues. Composite materials supplier Allegheny Technologies was similarly hit, but others like United Technologies (UTC) or Senior plc were more insulated.[14] Spirit suspended production on January 1, 2020.[91] By the end of January, Spirit and Boeing reached a deal to build 216 fuselage sections for the year 2020, or about 18 per month. Spirit did not expect Boeing to resume full pace of 52 aircraft monthly until 2022.[92]

General Electric and Safran Aircraft Engine jointly own CFM International, which builds the engines for the 737 MAX. As of September 2019[update], Safran expected to see the groundings affect its finances in the second half of 2019. The "decrease of pre-payments for future deliveries" was expected to reduce free cash flow in each semester by €300 million (354 million USD).[93] In October 2019, General Electric reported a $1.4 billion loss due to delayed sales of the CFM LEAP engines for the 737 MAX.[94] In January 2020, General Electric shifted production output to favor the LEAP variant used on the A320neo, but stated that it is prepared to meet demand from both Boeing and Airbus.[95] In January 2020 GE's factory in Bromont, Quebec, cut 13% of its workforce due to the MAX production halt and uncertainty about the restart date.[96][97]

In January 2020, United Technologies expected Boeing's production shutdown to last around 90 days, and forecast that production would then resume a rate of 21 aircraft per month, down from 42 prior to the shutdown. It expected the suspension to cost it around $300 million in lost revenue and $150 million in operating profit for the quarter; lost revenue for the full year will total some $600 million.[98]

A company based in Florida, XTRA Aerospace Inc., had worked on the 737 MAX AoA sensor of the Lion Air accident.[99][100] The FAA began investigating XTRA in November 2018, shortly after the Indonesia crash, and revoked Xtra Aerospace's repair station certificate on October 25, because the company had "failed to comply with requirements to repair only aircraft parts on its list of parts acceptable to the FAA that it was capable of repairing."[101]

## Airlines

[edit]

On March 13, 2019, Norwegian became the first airline to publicly demand compensation from Boeing for the costs of the groundings of the 737 MAX. CEO Bjørn Kjos said, "It is quite obvious we will not take the cost related to the new aircraft that we have to park temporarily, we will send this bill to those who produce this aircraft."[102] India's SpiceJet also announced that they will seek compensation from Boeing. A senior official said, "We will seek compensation from Boeing for the grounding of the aircraft. We will also seek recompense for revenue loss and any kind of maintenance or technical overhaul that the aircraft will have to undergo. This is part of the contract, which we signed with Boeing for all the 737 MAX aircraft."[103] On April 10 state-owned China Eastern Airlines requested compensation from Boeing over the disruptions.[104]

Airlines have countered the capacity loss by extending leases, deferring maintenance, rearranging aircraft assignments and canceling flights; most had removed the 737 MAX from schedules. On May 22, Bloomberg L.P. estimated Boeing's reimbursements will approach $1.4 billion based on typical operating profit per aircraft, would not be allocated until "expected deliveries are made" and compensation can include order changes.[105] Chinese carriers estimated the cost of the grounding at CNY4 billion ($579 million) by the end of June.[106] The delivery delay will cost Ryanair about a million passengers through the summer of 2019, but the low-cost carrier remains confident in Boeing and would prefer better pricing on future orders rather than cash compensation.[107]

Southwest Airlines, the largest operator of the type with 34 MAXs and a further 262 on order, canceled thousands of flights and said the aircraft had a financial impact of $435 million for the first three quarters of 2019. In December 2019, Southwest reached an initial agreement with Boeing. The compensation terms remained confidential, though $125 million of the amount is to be shared with the airline's employees via incremental profit sharing.[108] Factoring in aircraft retirement and renewal, Southwest operated with 60 less aircraft than expected.[109]

American Airlines canceled 115 flights a day, lowering estimated full-year pretax revenue by $350 million.[110]

Brazil's Gol expected to spend respectively 1% and 2% more than planned on fuel in the third and fourth quarters of 2019, according to its chief financial officer.[111]

Globally, Official Airline Guide (OAG) estimates that the grounding will cost airlines $4 billion of sales by November.[14]

By July 2019, United Airlines purchased 19 used 737-700s to fill in for MAX aircraft, to be delivered in December 2019.[112] United had expected to receive 30 MAX aircraft by the end of 2019 and a further 28 in 2020.[113]

In October, American Airlines CEO Doug Parker said during a media interview: "Certainly the shareholder piece should be borne by the Boeing shareholders, not the American Airlines shareholders."[114]

On January 14, 2020, American Airlines cancelled its MAX flights until June 3.[115] On January 16, Southwest Airlines removed the MAX from its schedule until June 6, to allow pilots to spend time in simulators as newly recommended.[116] On January 22, United Airlines announced that it was not expecting to return the MAX to service until after the peak summer season.[117]

In February 2020, TUI announced that it had chosen to secure replacement capacity for its MAX fleet until the end of the year, and expected the cost of the grounding to reach between €220 and 245 million for the year.[118] Southwest, American and United have deferred MAX flights until August 2020.[119][120]

On January 7, 2021, Boeing settled to pay $1.77 billion in damages to airline customers.[21]

## Aircraft lessors

[edit]

In December 2019, Air Lease, AerCap and GE Capital Aviation Services, three major aircraft leasing companies, had recorded record sales for months, as the groundings forced many operators to turn to them. In September, an analyst said that "renting a 10-year-old 737 NG, the MAX's predecessor, which consumes 15% more kerosene, cost $300,000 a month compared to $230,000 in January."[121]

Timaero Ireland Limited, a Dublin-based aircraft leasing company was suing Boeing in the US federal court in Chicago, alleging fraud and breach of contract in deals it signed starting in 2014 for 22 of MAX airliners. The company said it relied on Boeing's assurances that the planes were safe and would be delivered on time, but as of December 17, 2019, Boeing had delivered two instead of four aircraft and had refused to refund Timaero's advance payments on the planes. The leasing company demanded at least US$185 million in damages, citing design flaws that led to two deadly crashes and the grounding of the aircraft.[122]

Some customers were evaluating whether to revoke lease deals once delay of 737 MAX return to service reaches 12 months, which would result in lower lease rates and depreciation of aircraft value. Some lessors believe Boeing have to compensate the fall in value of the jets.[123] It is reported that some lenders are demanding higher collateral, leading to a lower 'loan-to-value' than a comparable Airbus jet.[123] Boeing also has to convince major aircraft lessors that the 737 MAX remains a sound long-term investment. A crucial concern among financiers is if Boeing would develop a 737 MAX replacement before the typical 15–20 years of production run.[123]

## Training and simulators market

[edit]

The Boeing 737 MAX simulator market is supplied by CAE Inc., L3 Harris Technologies Inc., and Tru Simulation + Training Inc. As of January 2020, there were 34 certified MAX flight simulators worldwide.[124]

CAE supplies 80 per cent of the world market for flight simulators and provides training services.[125] In November 2019, anticipating a high demand for training pilots when the MAX resumes flight, CAE increased production of simulators for the Boeing 737 MAX series. Chief executive Marc Parent said: "Our assumption is that there's obviously going to be a lot of pent-up demand when those airplanes start flying".[126] Increasing production before customer orders is an unusual step in this industry. As of mid-November 2019, the company had received 48 orders and delivered 23 to airlines through December.[127] In India, at the request of DGCA, Boeing placed a simulator managed by CAE to support local training.[128]

## Aviation insurance

[edit]

The insurance payout will likely be the biggest ever, according to S&P Global Ratings. According to director Marc-Philippe Juilliard, the crashes and the groundings of the MAX since March are "worst disaster in the history" of aviation insurance.[129]

The grounding of Boeing's 737 MAX has put pressure on insurance rates. They are likely to rise by more than 10 percent in 2019, even as underwriters try to narrow the insurance contract language about coverage for groundings.[130]

## Effect on the US economy

[edit]

The anticipated effect on the American economy is a reduction of at least half a percentage point (0.5%) in gross domestic product growth for the first quarter of 2020[131] with economic and employment effects concentrated in supplier locations.

Financial analysts forecast a jet surplus when the MAX returned to service as airlines moved stand-in aircraft back into storage as new aircraft were delivered.[132]

## References

[edit]

1. ^ "How Boeing went from appealing for government aid to snubbing it". Reuters. May 2, 2020. Retrieved July 22, 2020.
2. ^ "FAA clears Boeing 737 Max to fly again 20 months after grounding over deadly crashes". November 18, 2020. Archived from the original on November 18, 2020. Retrieved November 18, 2020.
3. ^ a b Chris Isidore (November 17, 2020). "Boeing's 737 Max debacle could be the most expensive corporate blunder ever". CNN. Retrieved November 21, 2020.
4. ^ Polek, Gregory (January 29, 2020). "Amid Big Losses, Boeing To 'Reassess' NMA, Cut 787 Rate". Aviation International News. Retrieved January 31, 2020.
5. ^ "Boeing to Recognize Charge and Increased Costs in Second Quarter Due to 737 MAX Grounding - Jul 18, 2019". MediaRoom. Retrieved January 31, 2020.
6. ^ Josephs, Leslie (June 3, 2019). "Boeing CEO says troubled 737 Max jets should be flying by the end of the year". CNBC.
7. ^ Hotten, Russell (July 18, 2019). "Boeing takes $5bn hit to cover 737 Max crisis". BBC News Online.
8. ^ "Boeing CEO: 737 MAX could be 'phased' back into service by regulators". Tech Xplore. September 11, 2019. Retrieved September 13, 2019.
9. ^ Johnson, Eric M.; Rucinski, Tracy; Hepher, Tim (September 13, 2019). "Crisis-hit Boeing readies huge effort to return 737 MAX to the skies". Reuters. Retrieved September 14, 2019.
10. ^ "737 MAX Progress Report" (Press release). Boeing. November 11, 2019.
11. ^ Josephs, Leslie (November 11, 2019). "Boeing expects to resume 737 Max deliveries in December and commercial service green light in January". CNBC. Retrieved November 11, 2019.
12. ^ Slotnick, David (November 11, 2019). "Boeing expects to resume delivering 737 Max jets to airlines in December, before the jet carries passengers again". Business Insider. Retrieved November 11, 2019.
13. ^ "Boeing says 737 MAX return delayed until mid-2020". news.yahoo.com. Retrieved January 24, 2020.
14. ^ a b c "Boeing's troubles cost the aerospace industry $4bn a quarter". The Economist. August 24, 2019.
15. ^ Bogaisky, Jeremy. "Boeing Seeks $60 Billion Bailout For U.S. Aerospace". Forbes. Retrieved March 20, 2020.
16. ^ "Boeing board to meet in Texas as scrutiny intensifies: sources". Reuters. October 20, 2019. Retrieved October 20, 2019.
17. ^ "Boeing cancels Christmas bonuses for staff amid ongoing 737 Max crisis". The Telegraph. January 4, 2020.
18. ^ "Boeing's CEO will Get a Fat Payday if the 737 MAX Returns". CCN.com. February 9, 2020. Retrieved February 10, 2020.
19. ^ "Boeing CEO Dennis Muilenburg said to decline his 2019 bonus after 737 Max crashes". www.cbsnews.com. November 5, 2019. Retrieved November 5, 2019.
20. ^ "Boeing Drops Out of Giant Pentagon Program to Replace Nuclear Missiles". Dow Jones Newswires. July 25, 2019 - via Barron's.
21. ^ a b c "Boeing Charged with 737 Max Fraud Conspiracy and Agrees to Pay over $2.5 Billion" (Press release). The United States Department of Justice. January 7, 2021.
22. ^ "Boeing sued by more than 400 pilots in class action over 737 MAX's 'unprecedented cover-up'". ABC News (Australian Broadcasting Corporation). June 22, 2019. Retrieved June 24, 2019.
23. ^ Josephs, Leslie (October 7, 2019). "Southwest Airlines pilots sue Boeing over 737 Max grounding". CNBC. Retrieved October 7, 2019.
24. ^ "Boeing 737 MAX victims' lawyers to subpoena Southwest, American airlines". Reuters. October 17, 2019. Retrieved October 17, 2019.
25. ^ Zumbach, Lauren. "Boeing taps former U.S. Attorney Dan Webb, special prosecutor in Smollett case, to defend it in 737 Max lawsuits". Chicago Tribune. Retrieved October 16, 2019.
26. ^ a b "Boeing's Lawsuit Risks Soar Around Second 737 Max Disaster". Bloomberg News. March 15, 2019. Retrieved March 22, 2019.
27. ^ Slotnick, David. "Boeing just announced $100 million for families of 737 Max crash victims. It likely won't be enough". Business Insider. Retrieved July 6, 2019.
28. ^ "Ethiopian crash families criticize Boeing over donation plan". Reuters. July 4, 2019. Retrieved July 6, 2019.
29. ^ "Boeing to make $50 million in payments to 737 MAX crash victims'..." Reuters. July 18, 2019. Retrieved September 2, 2019.
30. ^ LeBeau, Phil (September 25, 2019). "Boeing settles first 737 Max lawsuits with families of Indonesia crash victims". CNBC. Retrieved September 26, 2019.
31. ^ "Boeing settles first Lion Air lawsuits for at least $1.2 million apiece: sources". Reuters. September 26, 2019. Retrieved September 26, 2019.
32. ^ Baker, Sinéad (October 31, 2019). "Boeing's CEO was at a loss for words when he got hammered over attempts to move lawsuits from 737 Max victims' relatives to Indonesia". Business Insider. Retrieved November 1, 2019.
33. ^ Sutherland, Brooke (March 19, 2019). "China's Boeing Threat Has More Bite Than Bark". Bloomberg News.
34. ^ a b Genga, Bella; Odeh, Layan (March 13, 2019). "Boeing's 737 Max Problems Put $600 Billion in Orders at Risk". Bloomberg News.
35. ^ Johnson, Eric M. (March 14, 2019). "Boeing prepares for MAX 737 jets sitting outside factory as deliveries halted". Reuters. Retrieved March 14, 2019.
36. ^ "Boeing Reportedly Offers Huge Discounts For 737 Max As Total Orders Go Negative". Investor's Business Daily. January 14, 2020.
37. ^ "Lion Air Said to Plan Airbus Order Switch After Boeing 737 Crash". Bloomberg News. March 12, 2019.
38. ^ "Indonesia's Garuda cancels 49-plane Boeing 737 order after crashes". Agence France-Presse (AFP). March 22, 2019. Archived from the original on March 22, 2019.
39. ^ McCoy, Daniel (April 24, 2019). "Boeing now has negative net commercial orders to start 2019". bizjournals.com.
40. ^ Freed, Jamie (April 30, 2019). "Virgin Australia to delay taking Boeing 737 MAX jets to cut spending". Reuters.
41. ^ "Corrected (official)-Azeri airline AZAL to postpone $1 bln contract with Boeing". Reuters. June 3, 2019.
42. ^ Kaminski-Morrow, David (July 7, 2019). "Saudi carrier Flyadeal switches to A320neo from 737 Max". FlightGlobal.
43. ^ "China Southern suspends Boeing 737 Max order". TTG. July 31, 2019.
44. ^ Stolyarov, Gleb; Balmforth, Tom (August 27, 2019). "Russia's Rostec unit ready for out-of-court deal with Boeing on 737 MAX order". Reuters.
45. ^ McLean, Rob (August 27, 2019). "A Russian company is the first customer to sue Boeing over its 737 Max planes". CNN.
46. ^ "Russian company is first to sue Boeing to cancel 737 Max order and claim damages". CBS News. August 27, 2019. Retrieved September 19, 2019.
47. ^ "Royal Air Maroc suspends deal for two more Boeing 737 MAX jets -source". Financial Post. October 10, 2019.
48. ^ Lee, Liz; Freed, Jamie (January 15, 2020). "Malaysia Airlines suspends Boeing 737 MAX deliveries due to jet's grounding". Reuters. Archived from the original on January 16, 2020.
49. ^ Park, Kyunghee (January 15, 2020). "Malaysia Airlines Halts 737 Max Deliveries in Fresh Blow to Boeing". Bloomberg News. Bloomberg. Retrieved January 15, 2020.
50. ^ Lee, Liz; Freed, Jamie (January 15, 2020). "Malaysia Airlines suspends Boeing 737 MAX deliveries due to jet's grounding". Reuters. Archived from the original on January 15, 2020. Retrieved January 15, 2020.
51. ^ "Malaysia Airlines defers 2020 B737 MAX deliveries". ch-aviation. January 17, 2020.
52. ^ Catchpole, Dan (November 20, 2019). "Boeing 737 MAX Gets a $1.2 Billion Vote of Confidence at the Dubai Air Show". Fortune. Retrieved November 21, 2019.
53. ^ "Boeing Max orders shrink as Air Lease swaps 737 for Dreamliner". Bloomberg CNN News. November 12, 2019.
54. ^ Isidore, Chris (January 14, 2020). "Boeing reports more cancellations than new orders for 2019". CNN. CNN. Retrieved January 14, 2020.
55. ^ "Boeing reports lowest order numbers in 30 years following 737 Max catastrophes". The Guardian. Guardian News & Media Limited. January 14, 2020.
56. ^ Slotnick, David. "Boeing had its worst year in 3 decades and lost the title of world's biggest plane-maker". Business Insider. Retrieved January 15, 2020.
57. ^ Bogaisky, Jeremy (April 3, 2020). "This Big Boeing 737 MAX Order Cancellation Could Be Start Of A Wave". Forbes.
58. ^ Gates, Dominic (August 11, 2020). "Boeing deliveries slow to a trickle, while 737 MAX cancellations grow". The Seattle Times.
59. ^ "Boeing Reports First-Quarter Results" (Press release). Boeing. April 24, 2019. Retrieved April 24, 2019.
60. ^ Koenig, David (April 24, 2019). "Boeing pulls back its 2019 forecast, suspends stock buybacks". PBS. Associated Press. Retrieved April 24, 2019.
61. ^ Hsu, Tiffany (April 24, 2019). "Boeing Reports Slide in Earnings and Admits Future Is Hazy". The New York Times. Retrieved May 19, 2019.
62. ^ Isidore, Chris. "Boeing's profit falls 21% on the 737 Max crisis". CNN. Retrieved April 24, 2019.
63. ^ Waldmeir, Patti (July 18, 2019). "Boeing to take $4.9bn charge for 737 Max". Financial Times.
64. ^ Sheetz, Michael (July 24, 2019). "Boeing reports $2.9 billion quarterly loss — its worst ever — after taking 737 Max charge". CNBC. Retrieved July 24, 2019.
65. ^ Hemmerdinger, Jon (July 24, 2019). "Boeing warns of 737 production halt as grounding slams Q2 results". FlightGlobal.
66. ^ Gelles, David (July 18, 2019). "Boeing Says Charges Tied to 737 Max Grounding to Reach $8 Billion". The New York Times. ISSN 0362-4331. Retrieved July 19, 2019.
67. ^ "Ryanair Freezes Payment to Boeing on 737 Max Delivery Delays". Bloomberg News. September 19, 2019. Retrieved September 19, 2019.
68. ^ "The 737 Max has cost Boeing $9.2 billion and counting". finance.yahoo.com. October 23, 2019. Retrieved October 24, 2019.
69. ^ "Boeing Faces $5 Billion Tab on 737 Max Simulator Training". www.bloomberg.com. January 9, 2020. Retrieved January 9, 2020.
70. ^ Josephs, Leslie (January 20, 2020). "Boeing is in talks to borrow $10 billion or more as 737 Max crisis wears on". CNBC. Retrieved January 20, 2020.
71. ^ Bowden, John (January 20, 2020). "FAA's grounding of 737 Max jets forces Boeing to take billions in loans". TheHill. Retrieved January 20, 2020.
72. ^ Dominic Gates (January 29, 2020). "Boeing doubles projected cost of 737 MAX grounding to $18.4 billion". Seattle Times.
73. ^ Murdo Morrison (September 15, 2020). "Airbus displaces Boeing as aerospace's biggest company". FlightGlobal.
74. ^ Wattles, Jackie. "Boeing has lost $40 billion-plus in market value since Ethiopia crash". CNN. Retrieved March 23, 2019.
75. ^ Cox, Jeff (April 8, 2019). "Boeing shares falls after a Bank of America downgrade on 737 Max delays". CNBC. Retrieved April 8, 2019.
76. ^ Shaban, Hamza (April 10, 2019). "Boeing shareholder files class-action lawsuit, alleges plane maker concealed 737 Max safety risks". The Washington Post. Retrieved April 10, 2019.
77. ^ Sheetz, Michael (May 7, 2019). "Barclays downgrades Boeing: Survey shows flyers will avoid 737 Max". CNBC. Retrieved May 7, 2019.
78. ^ "Fitch, Moody's cut Boeing's debt outlook to 'negative' on 737 MAX..." Reuters. July 22, 2019. Retrieved July 23, 2019.
79. ^ "Boeing 737 Max crash revelations could cost shareholders $53 billion". www.cbsnews.com. October 21, 2019. Retrieved October 23, 2019.
80. ^ Isidore, Chris (November 11, 2019). "Boeing stock soars: It still thinks 737 Max will fly next month". CNN. Retrieved November 14, 2019.
81. ^ Johnsson, Julie; Schlangenstein, Mary (November 11, 2019). "Boeing Surges Most Since June on Optimism Over Max Comeback". Bloomberg. Retrieved November 14, 2019.
82. ^ Smith, Molly (December 19, 2019). "Boeing Cut One Notch at Moody's as 737 Max Grounding Extends". www.bloomberg.com. Retrieved December 19, 2019.
83. ^ Josephs, Leslie (January 17, 2020). "Wall Street expects Boeing to take another big, ugly charge on 737 Max. BofA estimates total cost of crisis as high as $20 billion". CNBC. Retrieved January 18, 2020.
84. ^ "Fitch cuts Boeing's credit rating over doubts of 737 Max's return". The New Paper. January 20, 2020. Retrieved January 19, 2020.
85. ^ "Boeing Credit Rating In New Jeopardy As Airlines Make Historic Cuts". investors.com. Retrieved March 16, 2020.
86. ^ Bechai, Dhierin (March 20, 2020). "The Boeing Bailout". Seeking Alpha. Retrieved March 22, 2020.
87. ^ "Boeing is in line for a bailout under "too big to fail" theory". Marketplace. March 20, 2020. Retrieved March 22, 2020.
88. ^ Gregg, Aaron; Stein, Jeff; Dawsey, Josh (March 25, 2020). "Senate aid package quietly carves out billions intended for Boeing, officials say". The Washington Post. Retrieved March 25, 2020.
89. ^ Slotnick, David. "Boeing is expected to get billions of dollars in bailouts from the Senate, despite backlash over the 737 Max crisis and past stock buybacks". Business Insider. Retrieved March 25, 2020.
90. ^ "At Boeing, C.E.O.'s Stumbles Deepen a Crisis". The New-York Times. December 22, 2019.
91. ^ "Spirit AeroSystems to Suspend Boeing 737 MAX Production in January 2020". spiritaero.com. Archived from the original on February 12, 2020. Retrieved February 22, 2020.
92. ^ Root, Al. "Here's How Many 737 MAX Jets Boeing Will Build in 2020". www.barrons.com. Retrieved February 1, 2020.
93. ^ "Safran reports strong financial results despite 737 MAX impact". www.aerotime.aero. September 5, 2019. Retrieved September 5, 2019.
94. ^ Sheetz, Michael (October 30, 2019). "GE to lose $1.4 billion this year from Boeing 737 Max grounding but expects jet's return". CNBC.
95. ^ Root, Al (January 3, 2020). "The Boeing 737 MAX Could Have a New Problem
Not Enough Engines". www.nasdaq.com.
96. ^ "Mises à pied chez des fournisseurs du Boeing 737 MAX". Le Devoir (in French).
97. ^ Hemmerdinger2020-01-13T20:17:00+00:00, Jon. "GE Aviation cuts 70 workers in Quebec amid Boeing's 737 Max production halt". Flight Global. Retrieved January 14, 2020.`{{cite web}}`: CS1 maint: numeric names: authors list (link)
98. ^ Perry, Dominic (January 28, 2020). "United Technologies sees 90-day 737 Max production halt". Flight Global.
99. ^ "Faulty 737 Sensor in Lion Air Crash Linked to U.S. Repairer". Bloomberg. April 2, 2019.
100. ^ Suhartono; Levin (October 15, 2019). "Pictures Raise Specter of Fake Evidence in 737 Max Crash Probe". www.bloomberg.com. Retrieved October 16, 2019.
101. ^ Rohmah, Ainur; Mahtani, Shibani; Asia; Duncan. "Lion Air crash investigators fault Boeing 737 Max's flight-control system, regulatory lapses and pilot training". The Washington Post. Retrieved October 25, 2019.
102. ^ Isidore, Chris. "Norwegian Air demands Boeing compensate it for grounded 737 Max planes". CNN. Retrieved March 13, 2019.
103. ^ Majumder, Arindam; Phadnis, Aneesh. "SpiceJet to seek compensation from Boeing after grounding 737 Max aircraft". Business-Standard. Retrieved March 14, 2019.
104. ^ Matsuda, Naoki (April 10, 2019). "China Eastern seeks damages from Boeing for 737 Max grounding". Nikkei. Retrieved April 10, 2019.
105. ^ Broderick, Sean (May 22, 2019). "Analysts Estimate Boeing Faces $1.4B In MAX Reimbursements". Aviation Week Network.
106. ^ Chua, Alfred (May 24, 2019). "Chinese airlines count the cost of 737 Max grounding". FlightGlobal.
107. ^ Kingsley-Jones, Max (May 24, 2019). "Ryanair ready to place more 737 Max orders: O'Leary". FlightGlobal.
108. ^ "Southwest and Boeing agree to terms on damages from Max grounding". FlightGlobal. December 12, 2019.
109. ^ "How Southwest has adapted to life without the 737 Max". The Air Current. February 20, 2020. Retrieved March 1, 2020.
110. ^ Josephs, Leslie (July 10, 2019). "American Airlines says Boeing 737 Max grounding cost it $185 million in the second quarter". CNBC. Retrieved September 19, 2019.
111. ^ Trentmann, Nina (September 6, 2019). "Boeing 737 MAX Grounding Means Higher Fuel Costs for Brazil's Gol". The Wall Street Journal. Retrieved September 6, 2019.
112. ^ Koeing, David (July 17, 2019). "United buying used jets to bolster fleet while Boeing 737 Max remains grounded". Chicago Tribune. Associated Press. Retrieved July 30, 2019.
113. ^ Kaminski-Morrow, David (July 17, 2019). "United to pick up batch of used 737-700s". FlightGlobal.
114. ^ Clifford, Tyler (October 25, 2019). "American Airlines CEO says 737 Max 'damages' should hit Boeing shareholders, not American's". CNBC. Retrieved October 26, 2019.
115. ^ Josephs, Leslie (January 14, 2020). "American Airlines cuts Boeing 737 Max from schedules until June as more delays arise". CNBC. Retrieved January 14, 2020.
116. ^ Gilbertson, Dawn. "Check your reservation: Southwest pushes 737 Max return to early June, cancels 330 flights". USA Today. Retrieved January 17, 2020.
117. ^ Wolfsteller, Pilar (January 22, 2020). "United says it does not expect to fly 737 Max this summer". Flight Global.
118. ^ Kaminski-Morrow, David (February 11, 2020). "TUI extends 737 Max replacement to full year". Flight Global.
119. ^ Josephs, Leslie (February 13, 2020). "Southwest prepares for another peak summer season without the Boeing 737 Max". CNBC. Retrieved February 15, 2020.
120. ^ Chokshi, Niraj (February 14, 2020). "Three U.S. Airlines Extend Halt on Boeing 737 Max Flights". The New York Times. ISSN 0362-4331. Retrieved February 15, 2020.
121. ^ Miguet, Francois (December 18, 2019). "Boeing 737 Max: pourquoi la facture sera beaucoup plus lourde que prévu". Capital.fr (in French). Retrieved December 18, 2019.
122. ^ "Irish-based aircraft leasing company sues Boeing over 737 Max". The Irish Times. December 18, 2019. Retrieved December 19, 2019.
123. ^ a b c Frost, Laurence; Humphries, Conor; Hepher, Tim (January 24, 2020). "Financier doubts add to Boeing's MAX headaches". Reuters. Archived from the original on January 24, 2020. Retrieved January 24, 2020.
124. ^ Kitroeff, Natalie; Gelles, David (January 7, 2020). "In Reversal, Boeing Recommends 737 Max Simulator Training for Pilots". The New York Times. ISSN 0362-4331. Retrieved January 9, 2020.
125. ^ Bushey, Claire (January 9, 2020). "US airlines rush to secure 737 Max simulators". www.ft.com. Retrieved January 9, 2020.
126. ^ Transportation (November 13, 2019). "CAE builds extra Boeing 737 Max simulators, expecting pent-up demand | Financial Post". Financialpost. Retrieved November 14, 2019.
127. ^ "Boeing Called for 737 Max Simulator Training And CAE Was Ready". Bloomberg. January 8, 2020.
128. ^ "Boeing places 737 MAX aircraft simulator in India". cnbctv18.com. November 5, 2020. Retrieved November 22, 2020.
129. ^ "Boeing MAX 737 likely biggest ever insurance payout: SP". RFI. September 3, 2019. Retrieved September 3, 2019.
130. ^ "Aviation industry expects double-digit insurance premium hikes after 737 MAX grounding". Reuters. September 20, 2019. Retrieved September 22, 2019.
131. ^ Timmons, Heather; Schneider, Howard (December 27, 2019). "Boeing's 737 production halt could dent U.S. first-quarter GDP". Reuters.
132. ^ Hepher, Tim; Daga, Anshuman. "Resurgent Boeing 737 MAX could trigger jet surplus, analyst warns". www.nasdaq.com. Reuters. Retrieved November 27, 2019.

*[v]: View this template
*[t]: Discuss this template
*[e]: Edit this template