Thursday May 23, 2019
GILLIAN RICH
European regulators made strict demands on the Boeing 737 Max as the FAA meets with other aviation authorities Thursday to discuss when the Boeing (BA) plane can re-enter service. American Airlines (AAL) backed the 737 Max as carrier hold a separate meeting today.
Boeing 737 Max software updates and new pilot training requirements are expected to be discussed during the FAA meeting in Fort Worth, Texas.
But according to the Financial Times, the European Union Aviation Safety Agency (EASA) told the aerospace giant and the FAA it has three conditions before allowing the Boeing 737 Max to fly again:
- EASA must approve and mandate any design changes by Boeing
- EASA must complete an additional independent design review
- 737 Max flight crews must be "adequately trained"
Boeing said last week that it has completed development of the updated software for the 737 Max. The aerospace giant also said it has finished associated simulator testing and its own engineering test flight. Boeing has flown the 737 Max with the updated software for more than 360 hours on 207 flights.
Airlines Meet In Montreal
The International Air Transport Association, a trade group, invited airlines that have Boeing 737 Max jets in their fleets or on order to a meeting in Montreal, Canada, Thursday.
U.S. carriers American Airlines, Southwest Airlines (LUV) and United Airlines (UAL) have Boeing 737 Max jets in their fleet. Southwest Air only flies the Boeing 737, including pre-Max versions.
American Airlines Chairman and CEO Doug Parker told NBC News that the carrier is committed to flying the planes again once they get the FAA's OK.
Meanwhile, China's top three carriers and Turkish Airlines are among the Boeing 737 Max customers seeking compensation over the plane's grounding.
Shares of the Dow Jones aerospace giant fell 1.7% to 352.78 on the stock market today. Boeing stock is still below its 200-day moving average. European rival Airbus (EADSY) slipped 0.2%.
Boeing 737 Max Tests FAA Credibility
The meetings come as global investigations into two deadly Boeing 737 Max crashes continue. The FAA was the last major aviation agency to ground the jet after the deadly Ethiopian Air crash in March.
Critics have accused the FAA and Boeing for being too close during the approval process and some countries are wary.
"My hope is that they have the confidence in our work and our analysis to make their ungrounding decisions if that's where the discussion is as close to our decision as possible," acting FAA administrator Daniel Elwell told congress last week.
But Indonesia, whose Lion Air carrier had the first Boeing 737 Max to crash last October, is skeptical problems with the jet can be resolved soon.
There are "lots of issues" and it's unclear whether the 737 Max will be able to fly in Indonesia this year, Indonesia's Director General of Civil Aviation Polana Pramesti told Bloomberg over the weekend. "I can't predict whether we will keep using the aircraft."
Officials in China, Canada and the European Union have said they plan to review the software and pilot training changes independently from the FAA before allowing the plane to return to service.
Meanwhile, Boeing has asked the FAA for special permission to build its new 777-9 jet's fuel tank out of composite materials. But the tanks have the possibility of being penetrated by tire debris. The updated 777 is expected to enter service in 2020.
Follow Gillian Rich on Twitter @IBD_GRich for aviation news and more.