October brings first prospect of 737 Max cancellations
Uncertain timing around the end of the 737 Max grounding is set to collide with Boeing's contractual agreements.
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When the clock strikes midnight on October 1, 2019, a host of new problems land on Boeing’s doorstep.
On that date, key contractual provisions, including the right to cancel a delayed airplane delivery, come into effect for some customers. This will further cloud the commercial dynamics around the 737 Max and the large base of customers, and particularly lessors, who have been buffeted by the jet’s grounding.
Related: The 737 Max’s return risks accidentally breaking the aviation industry
Boeing on Wednesday said its current expectation is that the 737 Max will gain “regulatory approval in the U.S. and other jurisdictions” early in fourth quarter (October) of this year, according to Chief Executive Dennis Muilenburg as part of its second quarter earnings report. How long the grounding extends is a massive point of uncertainty, but that timing is set to collide with Boeing’s contractual agreements.
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