Boeing’s 737 MAX received a major order first time in a long time after the aircraft’s grounding for 20 months due to two fatal crashes killing a total of 346 people. Ryanair, a no-frills airline from Ireland signed a deal to purchase 75 of the 737 MAX aircraft boosting Boeing’s shares for the second season. This deal was made possible after the US Federal Aviation Administration (FAA) gave approval last month after Boeing upgraded the plane and pilot training protocols.
The Irish airline announced that they talking round options for jets worth $7.0 billion at list prices.
Boeing CEO Dave Calhoun assured about the safety of the planes in a press conference, saying, ‘We will never forget the accidents that put us in the place that we were. Ever.’
Ryanair will also be buying 15 more jets from Boeing with a total value of more than $22 billion. They will be taking the delivery of the planes in a four-year period starting from 2021 to 2024.
Michael O’Leary, the Chief Executive of Ryanair gave all the credit for the re-establishment of the business between two companies, the FAA and other senior regulators to Calhoun and other senior Boeing leaders.
He also hopes that the aviation industry will recover soon with the invention of the COVID-19 vaccine by next year.
Calhoun predicted earlier that it would take almost three years for the aviation sector to recover completely. On Thursday he said that the recovery for their market came ‘a little faster’ than others.
On Wednesday the American Airlines completed a Boeing 737 MAX test flight and this is considered as a step towards resuming commercial services.
The devastating plane crashes of Lion Air and Ethiopian Airlines in 2018 and 2019 respectively, putting the company in a huge crisis. The MAX aircraft was the best selling aircraft from Boeing.
The investigations revealed that the crashes were caused by a defective flight handling system whose job was to prevent the plane from stalling when it ascended. But the fault in the system made the nose of the plane go downward. The FAA ordered an upgrade in this system to ensure safety.
Calhoun announced on Thursday that they have ‘re-installed, reinvigorated everything’ addressing the error. He informed that they have made sure of everything so that ‘nothing like this ever happens again.’
After the incidents, many customers canceled their orders for the MAX aircraft.
From March of 2019 to October of 2020, they have experienced a total of 565 cancellations of 737 MAX aircraft.
Boeing still has quite a number of lawsuits from the family members of the victims of the crash against them. The government is still probing into the matter. The family members of the dead are condemning the FAA’s decision of letting them resume flying without further changes.
The shares of the company increased by 7.1% and reached $239.66 in the late morning trade in New York.