Boeing suspends 737 MAX deliveries due to electrical faults

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Boeing announced on Wednesday it was pausing deliveries of the 737 MAX after an electrical issue grounded more than 100 flights earlier this month.

The airliner was only greenlit for flight a few months ago after a nearly two-year hiatus following crashes in Indonesia and Ethiopia, both of which were connected to faults in the cockpit software.

Read more: Europe to green light Boeing 737 MAX return to the skies

The body count for both crashes was 346, causing the airliner to be grounded for most of 2019 and all of 2020.

Despite the issues, the 737 MAX remains one of Boeing's bestselling aircraft and the fix has taken longer than expected as airports and airliners prepare for which is expected to be a busy summer as the world attempts to shake off the coronavirus pandemic.

Back in February, it was revealed Boeing had also recommended the suspension of some 777s after an engine failure caused debris to be scattered over a suburb in Denver, Colorado, only adding to the difficulties of the past few years.

On April 9, Boeing announced it has made a safety recommendation to 16 737 MAX operators due to an electrical issue identified on certain aircraft.

On Wednesday, the US Federal Aviation Administration (FAA) issued a new directive requiring a fix before the airliner would be greenlit for future service. It also specified the issue affects 109 aircraft worldwide.

Boeing did not immediately clarify how many undelivered planes must be fixed.

Read more: Boeing recommends suspension of some 777s after engine failure

The FAA further added that, according to Boeing's investigation into the faults, the affected parts in question were the standby power control unit, a circuit breaker panel and the main instrument panel.

CEO Dave Calhoun told CNBC on Wednesday that they would attempt to fix the issue in due course. Fixes could take as much as a few days per aircraft, he added.

In a press conference, he said the recall could make their deliveries on April "very light."

“At this time, we expect to catch up on deliveries over the balance of the year. We view 2021 as a critical inflection point for our industry," he added.

Calhoun could not predict when the issue as it stands will be resolved, only adding to concerns about the slow recovery the sector has faced owing to the pandemic.

In the same conference, he also announced that he expects China to lift the grounding ban on the 737 MAX in the second half of 2021.

The airliner has made 85 deliveries since the ban was lifted, and is expected to deliver on at least half of the 400 in its inventory before the end of the year.

2020 was a rough year for Boeing, with it capping off the year with a huge quarterly loss.

Read more: Boeing caps off 2020 with huge quarterly loss

This saw the company take its largest loss in history at $12 billion (€9.89 billion) and adjusted stock losses of $15.25.

The pandemic, plus the tariffs attributed to the long-running dispute with its transatlantic rival Airbus have hit the company hard.

However, both companies and their respective governments have sought an end to the feud, with both the EU and the US agreeing to suspend the tariffs that have been in place since 2018 and come together to discuss an end to hostilities.


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