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As of 16:27 21 Jul 2019
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As of 16:27 21 Jul 2019

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Boeing needs to announce more numbers

BBC Radio 5 Live

Wake Up to Money

Grounded Southwest Airlines Boeing 737 Max aircraft parked at the Southern California Logistics Airport

Monique Wong of Coutts spoke to Radio 5 Live's Wake Up to Money about that announcement from Boeing that it was taking a $4.9bn hit to cover costs related to the worldwide grounding of its 737 Max aircraft.

The "line in the sand" was in line with the market's expectations as the share price of the company rose 2%.

But, she said: "They haven't put any estimate on the liabilities - legal and otherwise - associated with the crashes... Analysts would like to see some number associated with that".

The number announced on Thursday was to cover the compensation for airlines.

Boeing has a strong balance sheet, she said, but needed to get the planes back in the sky.

Boeing takes $5bn hit over 737 Max grounding

Boeing 737 Max
Getty Images

Boeing is taking a $4.9bn hit to cover costs related to the worldwide grounding of its 737 Max aircraft.

That will wipe out profits when the world's biggest planemaker reports quarterly earnings next week.

The company is facing one of its worst crises in its history after the aircraft was grounded worldwide following two fatal accidents involving the 737 Max, which killed 346 people.

Analysis: Stakes are sky high for Boeing Max return

Theo Leggett

BBC International Business Correspondent

Grounded Boeing 737 MAX aircraft
Grounded Boeing 737 MAX aircraft

It’s looking increasingly unlikely that the 737 Max will be flying again before late Autumn – and quite possibly not before next year.

Should we be surprised?

In a word, no. The stakes are too high and this is one decision the regulators simply can’t afford to get wrong.

The Federal Aviation Administration has already faced heavy criticism for allowing the aircraft into service in its original form, with flight control software that has been implicated in two separate accidents and the loss of 346 lives.

A repeat would be simply unthinkable and for the sake of its own reputation, the FAA not only needs to be to be thorough but to be seen to be thorough.

So its analysis appears to have gone well beyond the fresh software developed to solve the original problem and is now addressing a range of other potential issues.

Boeing does desperately want to get the 737 Max flying again and resume deliveries to customers – it’s running out of parking space at its Renton factory for a start. Airlines also need the new plane.

But the message from the FAA has been consistent: it will lift the ban on flying “when we deem it is safe to do so”.

Boeing Max jets might not be cleared until next year

Boeing 737 Max
Getty Images

The Boeing 737 Max planes are unlikely to be carrying passengers this year, according to the Wall Street Journal.

The report says the situation remains uncertain, but the complexity of fixing the flight-control software and other steps could keep the aircraft out of service.

The 737 Max fleet of jets was grounded in March after two crashes, the first a Lion Air flight which crashed into the sea off Jakarta last year, and the second an Ethiopian Airlines' flight which crashed shortly after take off from Addis Ababa. In total 346 people were killed.