Some further articles on the max and possible RTS. Motley Fool is rather critical and paints a grim picture for the months/years ahead. I find the choice of words for the title of the article rather fitting to says the least. https://www.fool.com/investing/2020/07/ ... -what.aspx
The Boeing 737 MAX Completes Flight Tests: So What?
The 737 MAX is finally close to being cleared for a return to commercial service. It's too bad demand has evaporated.
Recertification won't mark the end of the 737 MAX grounding saga, though. International regulators -- particularly in Europe -- are poised to demand additional modifications to the 737 MAX's safety systems by the end of next year. These changes (and retrofits for aircraft that have already been produced) will add costs for Boeing, denting future profits. Pilots will also need additional simulator training to fly the 737 MAX going forward, which could trigger payments by Boeing to airline customers to cover the related cost.
A plane without a market
Despite the 737 MAX's initial design flaws and the resulting crashes, the aircraft was in high demand prior to the COVID-19 pandemic. Between the strength of global air travel demand and production constraints at Airbus, canceling 737 MAX orders wasn't a realistic option for most of Boeing's customers. Today, the situation is much different. Air travel remains far below 2019 levels, and industry insiders believe it will take several years for demand to recover fully. As a result, airlines are trying to defer or cancel as many aircraft deliveries as possible. Due to the extensive delivery delays for 737 MAX jets originally scheduled to be handed over in 2019 and 2020, customers in many cases have the right to cancel some of their orders.
Grim times ahead
In the first 12 months after the 737 MAX grounding last March, Boeing was able to partially offset cash burn from that part of its business with profits from its wide-body jet programs and its services business. But in the current environment, those sources of cash are drying up, too. Airlines are retiring older jets rather than spending money on Boeing services offerings that could extend those planes' useful lives. Simultaneously, wide-body demand has plummeted, as international travel is likely to be one of the slowest parts of the aviation market to recover.
For example, Boeing is in the midst of slashing 787 production by half (from 14 per month to seven per month). Yet even that production rate may be too ambitious. Whereas Boeing delivered 29 787 Dreamliners in the first quarter, it appears to have delivered just seven in the second quarter. Furthermore, key customers like Qatar Airways -- which accounts for 9% of Boeing's wide-body backlog -- are demanding multiyear order deferrals.
Aircraft demand will recover eventually. That said, "eventually" could be many years away. In the meantime, Boeing has taken on tens of billions of dollars of debt and is burning through cash at a frightening pace. Investors would be wise to avoid the stock.
And even though many many people on a.net still believe that everyone will forget about the issues and happily fly on the max, why are airlines offering free changes? Because in reality people are still scared of the plane I guess?https://thepointsguy.com/news/737-max-f ... t-changes/
As The New York Times reports, United reaffirmed its previous commitment to rebook passengers scheduled to fly the MAX free of charge, once it returns to service. “If people need any kind of adjustments, we will absolutely rebook them,” United’s former CEO Oscar Munoz stated in 2019. While Scott Kirby has since taken the reins as CEO, a United Airlines spokesperson confirmed the offer still stands, stating:
"Nothing is more important to United than the safety of our customers and employees. Once regulators have reached an independent conclusion about the safety of the MAX, we’ll be prepared to explain to our customers and employees how our MAX fleet will be put back into service and why we have the highest confidence that it is safe to do so. As part of our ongoing commitment to our customers, we will be transparent – and communicate in advance – with our customers who are booked to fly on a MAX aircraft, will rebook those who do not want to fly on a MAX at no charge."
American Airlines, another large 737 MAX operator, confirmed similar intentions, with a spokesperson stating, “Even though we don’t know when the MAX will reenter revenue service, we have always planned to offer flexibility to customers who are concerned about flying on the MAX.”
A Southwest Airlines spokesperson confirmed that airline will also accommodate free changes for customers who don’t feel comfortable flying the MAX, so uneasy passengers will have flexibility when flying all three U.S.-based 737 MAX operators, once the plane does eventually return to the skies.