Boeing "737 Max Flight Resumption Likely Only by Mid-Year"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] American aircraft manufacturer Boeing expects the grounding of the 737 Max model, which has been involved in consecutive crashes, to continue at least until mid-year, CNBC and other media reported on the 21st (local time).

According to the report, Boeing stated in a press release that "we are informing customers that the operation of the 737 Max is expected to resume around mid-year." Foreign media, citing sources, forecast that aviation authorities' approval will not be granted until June or July.

The 737 Max has been grounded worldwide after two fatal crashes causing significant casualties. Boeing is upgrading the 737 Max's software system and awaiting approval from aviation authorities. Initially, Boeing expected approval by the end of last year, but currently, it seems difficult to obtain it even by mid-year.

The production line for the 737 Max model has also come to a halt. CNN reported that production of the 737 Max at the assembly plant in Washington state has officially stopped. As the grounding prolongs and production costs rise, Boeing initially planned to suspend production for the month of January but appears to be considering extending this period.

As reports suggest the 737 Max grounding will be prolonged, Boeing's stock price plunged more than 5% intraday on the New York Stock Exchange. Boeing is scheduled to announce last year's earnings on the 29th.