Boeing: 737 MAX Line to Require $1 Billion in Repairs
UNITED STATES – According to an online news report posted at northwestgeorgianews.com, Boeing recently reported that it would need to spend $1 billion to repair its 737 MAX line of airplanes. The repairs are required after two plane crashes occurred in 737 MAX 8 aircraft, killing nearly 350 people.*
Boeing announced the estimated cost of repairs on April 24 during a presentation to investors about its first-quarter earnings. The earnings for the first quarter of 2019 fell short of what Wall Street had anticipated, and a Boeing spokesperson said the estimate provided that day included increased costs of production projected through the next few years.
During the meeting, Boeing did not elaborate on the specific costs of pilot training or repairing its 737 MAX software, which is believed to be responsible for the two plane crashes. Sensors inside both airplanes appear to have malfunctioned and caused the jets to perpetually dive. The $1 billion estimate did, however, shed light on some of the expected costs created by the crashes.
Boeing indicated that it would be issuing new guidance on the year, as the company’s previous guidance did not take into account costs associated with the 737 MAX line. Boeing earnings were down 13 percent for the first quarter from last year, coming in at $2.15 billion net. Revenue dropped by 2 percent to $22.92 billion.
CEO of Boeing Dennis Muilenburg told investors that the company was making some headway in not only repairing the 737 MAX software but also in lifting current bans on the line of planes. The planes were grounded by many countries, including the U.S., after the second 737 MAX 8 plane crash.
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