More delays ahead: Boeing issues new 737 MAX guidance
It now looks like Boeing's troubled 737 MAX won't be cleared to fly until this summer.
The manufacturer said on Tuesday it was advising its customers and suppliers that it now expects the MAX to be grounded until "mid-2020."
The update comes just as all three U.S. operators of the jet — American, United and Southwest — had put the MAX back into their expected schedules in June, just the latest change after repeated delays while awaiting recertification of the plane by the Federal Aviation Administration.
Now, with Tuesday's announcement by Boeing, those updated schedules are again in question.
Sign up for the free daily TPG newsletter for more airline news.
Boeing addressed the mounting uncertainty about the MAX's expected return to service.
"This updated estimate is informed by our experience to date with the certification process," Boeing said in a statement. "Returning the MAX safely to service is our number one priority, and we are confident that will happen. We acknowledge and regret the continued difficulties that the grounding of the 737 MAX has presented to our customers, our regulators, our suppliers, and the flying public."
The new guidance about the MAX's return-to-service timeline is the first such update to come under the leadership of David Calhoun, who assumed Boeing's chief executive role last week.
As recently as November, the company's previous leader maintained that the jets would fly again in early 2020. Though the Federal Aviation Administration has not committed to a specific schedule for recertifying the jet, the regulator did say last month that there was no chance the MAX would fly again in 2019.
In response to Boeing's statement Tuesday, the regulator issued its own, and is still holding out on defining a timeline for when the MAX might return to the skies.
"The agency is following a thorough, deliberate process to verify that all proposed modifications to the Boeing 737 MAX meet the highest certification standards," the FAA statement said. "We continue to work with other safety regulators to review Boeing's work as the company conducts the required safety assessments and addresses all issues that arise during testing."
Related: 'This is a crucial time for Boeing,' new CEO says on first day
While airlines have not yet announced any updates to their latest return-to-service schedules for the MAX, further delays seem likely after the latest Boeing update.
"Today's Boeing announcement essentially trashes the summer flight schedules for 737 MAX customers and, in turn, their passengers," Henry Harteveldt, a travel industry analyst and president of Atmosphere Research said in an email.
Based on Boeing's guidance, he added, U.S. operators now likely won't get their MAXes in the air again until August or September.
But, he said, the timing of the announcement does offer a small silver lining for airlines and passengers.
"It's better for 737 MAX operators to get this news now, bad as it is, because it gives them time to adjust their flight schedules and either swap aircraft for flights scheduled to use the MAX to another type of plane, or move passengers from flights that were planned to use the MAX to flights using other types of equipment," Harteveldt said. "If this announcement were made in March or April, things would be more chaotic for airlines and summer travelers."
Related: Study: Boeing must be 'hypertransparent' to win back trust on 737 MAX
TPG featured card
Rewards
| 2X miles | 2 miles per dollar on every purchase |
| 5X miles | 5 miles per dollar on flights and vacation rentals booked through Capital One Business Travel |
| 10X miles | 10 miles per dollar on hotels and rental cars booked through Capital One Business Travel |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)Pros
- The Capital One Venture X business card has a very lucrative welcome offer.
- In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
- Business owners are also able to add employee cards for free.
Cons
- The card requires significant spending to earn the welcome offer.
- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
- Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
- Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
- Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
- Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month
Rewards Rate
| 2X miles | 2 miles per dollar on every purchase |
| 5X miles | 5 miles per dollar on flights and vacation rentals booked through Capital One Business Travel |
| 10X miles | 10 miles per dollar on hotels and rental cars booked through Capital One Business Travel |
Intro Offer
Earn 200K miles when you spend $30K in the first 3 months, and an additional 200K miles when you spend $150K in the first 6 monthsLIMITED-TIME OFFER: Earn up to 400K bonus milesAnnual Fee
$395Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.740-850Excellent
Why We Chose It
The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)Pros
- The Capital One Venture X business card has a very lucrative welcome offer.
- In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
- Business owners are also able to add employee cards for free.
Cons
- The card requires significant spending to earn the welcome offer.
- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
- Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
- Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
- Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
- Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month

