Three weeks ago, the FAA and aviation groups around the world officially cleared the now notorious Boeing (BA) 737 MAX airliner for service.
It’s now been more than a year since the plane grounded after two fatal crashes, but this week marks the first time a major airline is putting the 737 MAX back in service. Brazil’s Gol Airlines just brought the MAX back into its fleet.
What was the problem? Well, a computer system on the plane, with no secondary check, could push the nose down. If pilots weren’t instructed on how to override, the system would crash the plane. Probably not going to do a lot for those already wary of flying.
Well, if it helps Boeing underwent heavy scrutiny and thorough a thorough review after it revised the system and implemented more training, but the episode revealed more about how Boeing treated authorities as antagonists and actively worked to hide information as much as anything.
Regardless, airlines will put the popular commercial plane back in service. The new plane can save airlines up to 15% on fuel, a monetary goal they can’t afford to ignore, especially as the pandemic has tapped companies across the industry bone dry. Boeing itself certainly wasn’t impervious to the severe drop in travel demand.
Along with the issues the company was having with the 737 MAX planes, the pandemic helped fuel shares of Boeing to plummet as much as 70% this year.
But any investors hopping into the beaten-down stock should fear not. Gol Airlines is likely just the first to hop back into bed with the 737 MAX. Expect more airlines to follow suit soon… what’s the worst that could happen?