Following media reports that the United States based aircraft manufacturer Boeing was set to issue a software upgrade for its 737 Max aircraft in 10 days resulted in an increase in the shares of the plane manufacturer.
It is expected that the planned changes to its anti-stall software for its 737 Max aircraft of Boeing would be signed off by the US Federal Aviation Administration by March 25, according to media reports quoting sources. Reports also claimed that the timeline has also been made known to US lawmakers.
However the reports also cautioned that the mere signing by the FAA to approve of the software change from Boeign does not instantly translate into lifting of the orders for the grounded planes of the 737 Max models.
The time-frame for the fix was first reported by the French news agency Agence France-Presse, citing sources. According to a confirmation made by Boeing about the timeline, no changes to the AFP report has been made.
Following the grounding of the Boeing 737 Max model crafts by dozens of countries and airlines all across the world, the FAA also on Wednesday last week ordered the grounding of the flights and the crafts in the US because the authorities felt that there was some prima facie similarity between the two fatal crashes involving the craft within the last five months.
157 people on board an Ethiopian Airlines Boeing 737 Max 8 died instantly after the craft crashed shortly after takeoff a little more than a week ago. Just five months ago, all 189 people on board a Lion Air Boeing 737 Max 8 flight died after the plane crashed into the sea after it left from Jakarta, Indonesia. Both the crafts that met with the crashes were newly inducted into the fleet and recently delivered by Boeing before they crashed.
Following the Ethiopian crash, there was a more than 10 per cent drop in the shares of Boeing.
Investigations in to the Lion Air has indicated that the pilots of the craft struggled to control an automatic anti-stall system that is inherently installed in the 737 Max crafts and one that was not present in the older versions of the model.
The FAA would mandate a software fix by April, the agency had said before it had announced the grounding of the Boeing 737 Max planes. It had also said that other updates to pilot training and manuals were also being developed by Boeing.
The sudden turnaround and rally, following a week of turmoil, in the Boeing shares come sooner than was being expected by the Wall Street. For example, according to a prediction by the Bank of America earlier last week, it would not be until about three to six months before the aircraft manufacturer would be able to “certify the fix.”
Of the more than 350 Boeing 737 Max jets in global fleets, 72 are flown by U.S. airlines United Airlines, American Airlines and Southwest Airlines.
(Adapted from CNBC.com)