Boeing inks deal with manufacturers to cover 737 Max jet engine costs
Category: #headlines |   By Hrishikesh Kadam |   Date: 2020-02-28  | 
  • Share
  • Twitter
  • Facebook
  • LinkedIn

Boeing inks deal with manufacturers to cover 737 Max jet engine costs

Chicago headquartered aerospace giant Boeing has reportedly agreed to pay for the cost of 737 MAX engines. Citing reliable sources, according to the transaction, all the engines that will be delivered in the year 2020 will be completely paid for. Moreover, Boeing will also pay for the engines that were supplied in 2019. 

For the record, 737 MAX aircraft faced ban after the plane crashed twice- once in October 2018 and then March 2019. Since then the aircraft are grounded across the globe affecting Boeing’s delivery of planes.

Notably, last month, the aerospace giant delivered close to 13 aircraft and a year earlier it received an order for 45 planes after cancellation in January and supplied 46 aircraft. Apparently, Boeing’s strong competitor – European company Airbus witnessed a total of 274 orders in January. This recorded the company’s biggest January sale in the last 15 years.

In a bid to achieve financial flexibility, Boeing has agreed upon a short-term loan of USD 13 billion in order to get past the loss incurred due to the grounding of 737 MAX aircraft.

Also Read: Air Zimbabwe to reportedly lease out two Boeing 777 passenger aircraft

In recent news, the Federal Aviation Administration noticed that the electrical wiring of the 737 MAX aircraft did not meet the required regulations for safe wire separation. This creates a possibility for an electrical short to move the plane’s horizontal tail which could prove to be highly catastrophic.  

Founded in the year 1916, Boeing is the world’s largest aerospace company and a major manufacturer of defense aircraft, commercial jetliners, space and security solutions. Headquartered in Chicago, the company employs over 153,000 people across the United States and over 65 nations. In 2018, Boeing delivered nearly 5,612 aircraft to airline companies across the globe.

Recently, Boeing had discovered debris in the fuel tanks of many of the grounded 737 Max jets lying in storage. This has added to the difficulty in getting these planes back up in the air. The company had claimed it would update its checklists and instructions for employees as well as included additional audits and inspections to address the issue.

 

Source Credits: https://www.thestreet.com/investing/boeing-is-said-to-reach-accord-with-makers-of-737-max-engines

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Hrishikesh Kadam    

Hrishikesh Kadam

A graduate in electronics and telecommunication engineering, Hrishikesh Kadam has always found writing fascinating. Driven by a never-ending passion for content creation combined with a bit of experience in writing personal blogs, Hrishikesh blends his technical knowl...

Read More

More News By Hrishikesh Kadam

Atos to strengthen its cybersecurity footprint through In Fidem buyout
Atos to strengthen its cybersecurity footprint through In Fidem buyout
By Hrishikesh Kadam

French multinational information technology company Atos has reportedly finalized an agreement to acquire In Fidem, a Quebec-based cybersecurity specialist. According to reliable sources, In Fidem’s acquisition will allow Atos to strengthen its...

Milestone acquires Covestic to boost IT managed services portfolio
Milestone acquires Covestic to boost IT managed services portfolio
By Hrishikesh Kadam

Milestone Technologies, an IT service management company, has recently announced the acquisition of the U.S.-based IT professional services company, Covestic, LLC. The deal was geared towards the expansion of the company’s regional footprint in...

China pledges to revisit anti-monopoly laws against internet platforms
China pledges to revisit anti-monopoly laws against internet platforms
By Hrishikesh Kadam

In recent developments, an annual central conference for China’s judicial, public security, and prosecution work reportedly pledged to reinstate judicial laws and regulations against anti-competitive acts and internet monopolies this year. The...