Boeing takes $5bn hit to cover 737 Max crisis

Published: 19 Jul 2019   

Online Desk

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

The charge is set to wipe out profits when the world's biggest planemaker posts quarterly results next week, BBC reports. 

In a statement, Boeing also said its "best estimate at this time" is that the aircraft will return to service in the last three months of this year.

A 737 Max crash in Indonesia in October, and another in Ethiopia in March, killed 346 people in total.

Boeing is facing one of the worst crises in its history after its best-selling aircraft was grounded worldwide after the disasters.

Crash investigators have concentrated their efforts on the aircraft's control system and Boeing has been working with regulators to roll out a software upgrade.

The manufacturer, facing intense scrutiny over the regulatory clearance for the aircraft to fly, has cut the monthly production rate from 52 to 42 as airlines hold off purchases.

Most of the $4.9bn charge will be used to compensate Boeing's customers for schedule disruptions and delays in aircraft deliveries.

President Xi discuses Rohingya repatriation issue with Myanmar

President Xi discuses Rohingya repatriation issue with Myanmar

China has reaffirmed its willingness to provide further support, within ...

Expand number of fast track projects: PM

Expand number of fast track projects: PM

Prime Minister Sheikh Hasina has said more development initiatives alongside ...

Amar Ekushey Boi Mela on Feb 2

Amar Ekushey Boi Mela on Feb 2

The month-long Amar Ekushey Boi Mela 2020, the country's largest ...

Education curriculum should be an attractive enough that makes the class room more interesting

Education curriculum should be an attractive enough that makes the class room more interesting

There is no denying the fact that the education system ...

Revised SSC exams scheduled published

Revised SSC exams scheduled published

A revised schedule for SSC and equivalent exams, with the ...

Trump legal team calls impeachment 'brazen' attempt to overturn election

Trump legal team calls impeachment 'brazen' attempt to overturn election

Donald Trump’s legal team has delivered a fiery response to ...

E-passport to be launched on Wednesday

E-passport to be launched on Wednesday

Electronic passport or e-passport will formally be introduced in the ...

224 return from Saudi Arabia on Saturday

224 return from Saudi Arabia on Saturday

Some 224 Bangladeshi workers returned home from Saudi Arabia on ...